gold v. Euro

http://stockcharts.com/c-sc/sc?s=$HUI...r=1337786223775


Suppose EU banks are dumping gold to get currency, If so could that explain the correlation (`68% via mathlab). Explain one of the affects
on gold prices? There is a less negative correlation with the rising USD.


If the Euro/EU bank connection exists or controls, does that mean until the Euro is more solid ground there is no recovery in gold?


Best Islander.

Edited by Islander, 23 May 2012 - 10:30 AM.

http://stockcharts.com/c-sc/sc?s=$HUI...r=1337786223775


Suppose EU banks are dumping gold to get currency, If so could that explain the correlation (`68% via mathlab). Explain one of the affects
on gold prices? There is a less negative correlation with the rising USD.


If the Euro/EU bank connection exists or controls, does that mean until the Euro is more solid ground there is no recovery in gold?


Best Islander.

definitely. they could be selling and or leasing their gold. it seems that the wealth of the west is heading east. the appetite for gold in the east is insatiable. not just china and india. russia, vietnam come to mind as well. the people one day will open their countries gold vaults and find paper ious!
dharma

everything is getting sold to move the "safety" germans auctioned 6 billion bonds at ZERO % this AM Swiss at -0.1%!!!! not enough gold for it to serve in this capacity and face it, it is made too scary

http://stockcharts.com/c-sc/sc?s=$HUI...r=1337786223775


Suppose EU banks are dumping gold to get currency, If so could that explain the correlation (`68% via mathlab). Explain one of the affects
on gold prices? There is a less negative correlation with the rising USD.


If the Euro/EU bank connection exists or controls, does that mean until the Euro is more solid ground there is no recovery in gold?


Best Islander.

definitely. they could be selling and or leasing their gold. it seems that the wealth of the west is heading east. the appetite for gold in the east is insatiable. not just china and india. russia, vietnam come to mind as well. the people one day will open their countries gold vaults and find paper ious!
dharma

Vietnam in particular still has a somewhat tight monetary policy. With inflation coming down fast year over year and economic growth stalling, loose monetary policy is going to be unleashed. That will be bullish for commodities.