The last few days have seen dollar surging against most major currencies and even though Gold has fallen, it has been relatively resilient. The Macros -European debt crisis has still not been resolved and in all probability will only worsen, given an increasing probability of a Greek default and the subsequent domino-effect - US economic growth is still sluggish and public confidence is pretty low. The Obama jobs package is still only focused on “temporary resolution” of the crisis. - Political uncertainty in middle-east and African countries continue unabated. Gold has twice breached $1900 an ounce only to fall later. The last Gold high also marked the low of US dollar. The Dollar has strongly surged and though gold has fallen in response, the fall has been relatively tame as compared to the strong dollar increase. (Chart below- Red line is gold price, blue line is US dollar index)

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