The devaluation of the euro in recent months, which has continued in spite of huge political attempts to reverse the trend, has recently accelerated. The Euro value against the USD (US dollar) has nosedived. The 30, 90 and 200 weekly averages have been falling steeply. Something known as a ‘golden cross’ has formed, whereby the 30 and 90 weekly averages have fallen through the 200 weekly average. A ‘golden cross’ is a bearish sign which could spell further falls ahead for the euro (If you’re uncertain of what these moving averages are don’t worry, we’ll write an article on these soon). As confidence in the euro continues to erode, gold prices today find themselves at record highs for the euro, pounds sterling (GBP) and US dollars. The dollar and gold relationship changes Whilst new records are being reached for gold priced in US dollars the dollar too has seen an improvement over the year. This week saw the gold futures up more than 15 percent on a year to date basis, and the dollar index up 10 percent, the long term ‘Inverse dollar gold relationship‘ is being discarded. Gold has been rising in tandem with the dollar for the past few months.

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