Gold Prices Plunge
The situation concerning sovereign debt and Europe and the viability of the euro as a currency keeps pushing the U.S. dollar up and in some cases like today, gold futures prices down.
Gold and the U.S. dollar have been struggling with their usual inverse relationship which has them normally moving in opposite directons.
Lately that has changed with gold and the dollar moving at times in the same direction. That comes from investors not being sure which one is the safest and most secure to invest in, although gold is the obvious one for those that understand its safety and inflation hedge.
The U.S. dollar is very vulnerable as well, but with investors looking at it in contrast to the euro, it looks a lot safer than it should be.
We'll continue to see this as the European sovereign debt story unfolds. Greece isn't the only nation facing problems, as Portugal debt was downgraded today by Fitch Rating.
Gold Prices Plunge
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