Gold prices today are pressing toward $1,400, after European Central Bank President Jean-Claude Trichet hinted the ECB may step up acquisitions of sovereign debt of nations continuing to struggle from out of control deficits and inability to pay for promises to their people they should have never made.
The U.S. dollar also reversed course today, helping shore up gold prices, as it moved back to its expected performance of falling in value against the euro.
This will continue to be a volatile situation, as there appears to be a hiding of the true depth of the sovereign debt crisis in Europe, and every time it is revealed that it is much worse than thought, the euro plunges, the U.S. dollar strengthens against it, and gold prices rise.
That will continue to happen until the situation is handled in Europe, if it even can be.
For gold, much of the quantitative easing news has been shoved aside as the sovereign debt crisis grabs headlines, but once investors price that into gold again, prices should continue to press up and easily surpass the $1,400 an ounce mark.
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