A point of interest – gold priced in Euro terms is less than 2 euros off its all time record high at today’s PM Fix. Clearly the yellow metal is performing incredibly well when priced in terms of the various European currencies. That is one of the reasons that the Comex bears cannot break it down technically and why it continues to attract buying on dips in price.
I want to repeat for what seems like the umpteenth time – those Elliot Wavers who keep calling for gold’s demise are misguided because their view of the metal is too “Dollar-priced” centered. This is the fatal flaw in their “analysis” and their incessant bearish gold calls. They treat the metal as if it was a common commodity not understanding its role as a CURRENCY. Any analysis that does not grasp this simple fact is doomed to failure for we are not talking about soybeans here or cocoa but a metal that has had an historic role as a currency and a store of value for thousands of years. The failure to see the price of gold in various other currency terms leads to erroneous conclusions. Any market that is going on to make all new lifetime highs is not bearish. It really is that simple and arguments to the contrary are based more on hope and wishing than solid, objective analysis.
Dan Norcini...
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