Dear Friends,

Following are three charts of gold priced in terms of the Euro, the British Pound, and the Swiss Franc. The reason for the charts is to help keep us focused on what gold is doing on a global basis and not allow us to become tunnel-visioned ignoring the rest of the world outside the US. Many European countries are experiencing severe financial crises and as such, demand for gold from that quarter of the globe is extremely strong. While the Comex gang is busy attacking the paper price of gold at that exchange, elsewhere around the world demand for the metal remains robust.

Fear is a powerful factor in moving markets and it is no stretch of the truth to say that many investors in Europe are extremely worried right now. Once confidence is lost in a currency, it is EXTREMELY difficult to restore it. Keep that in mind because what is occurring in Europe cannot be ruled out here in the US at some point in the future.

For now the Dollar has remained relatively strong against the currencies out of Europe not so much because investors are confident in its management, but rather out of a type of default. That will not last indefinitely. The more this distrust in paper currencies increases, the stronger gold is going to become.

Far too many in the US remain oblivious to the perilous conditions of an increasing number of individual states.

Trader Dan

Click here for today’s Euro Gold charts in PDF format with commentary from Trader Dan Norcini

Click here for today’s Monthly Gold charts in PDF format with commentary from Trader Dan Norcini