The US Dollar has bounced over the last two days to close at 80.75 on the US Dollar Index as shown on the above chart. India raising its interest rates played a bit part in this resurgence, however, the prime mover would appear to be the Euro which is clouded in uncertainty regarding an amicable solution to the financial problems in Greece.
The European Union will not want to lose a member as they believe that big is beautiful,so a solution must be found. However a bail out is unpalatable and who amongst us would expect the Greeks to adopt an austerity package, they have no history of doing so and as they say a leopard does not change its spots. So the drag on the Euro continues and the flight to a safe haven pushes dollar higher. So here we have it, a European state which only accounts for around 2% of the European GDP has got the Euro at its mercy and is bolstering the dollar at the same time. We cant ignore it but to us it is a ridiculous state of affairs. As we are on the subject of ridiculous you might want to take some light relief from this short video clip of German and Greek philosophy, just click this link.
Now if you think that things are not too bad for the dollar then please take a peak at the US Debt Clock, not a pretty sight and for those interested in gold prices you can also checkout the league table of just who owns gold.
Going forward the only certainty that we have is change and in our tiny arena that change is going to become more dramatic as the oscillations in gold prices become more violent as prices swing in both directions. So its time to find your sea legs and hold on tight.
Have a good one.
Got a comment then please add it to this article, all opinions are welcome and appreciated.
If you would like to get a bit more bang out of your your buck, then check out our Options Trading Service please click here.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.
For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.
For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.