Is gold beginning to break with the dollar again?

Gold has been recovering a little despite continuing dollar strength against the Euro and some other currencies.

LONDON – The U.S. dollar has had a reasonably strong week – at least against many other currencies, notably the Euro which has been hit by economic mayhem in Greece and worries about the rest of the PIIGS countries which, in addition to Greece, constitute Portugal, Italy, Ireland and Spain.  This is not to mention some of the recent East European members of the Euro club which may be in even more difficulty.  All these are running huge deficits and their plight could, some feel, lead to the destruction of the Euro.  While this is unlikely, the stronger Euro nations, notably Germany and France, seem to be decidedly lukewarm in bailing out their less fortunate cousins in the Euro zone.

Gold opened higher again this morning, while the dollar was virtually unchanged ahead of what may be a light day of trading anyway as it is the Presidents Day holiday in the U.S.  The $1100 gold price level has been breached again on the upwards path and it remains to be seen whether further upward momentum develops or not.

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