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Gold is rising in all currencies
By Jim Willie
A profound broad gold rally is underway. It is occurring in almost every single major currency.
Unsure about Zimbabwe though. In the last article, two major forecasts were made, both hit squarely. The euro fell, heading toward the 143 stated target forecasted. Talk circulates about the Euro Central Bank eventually cutting interest rates. Pressure will grow enormously.
The Germans are isolated in wanting a hard line against price inflation. A Latin Bloc has formed, urging a rate cut as the southern nations of France, Italy, Spain, Portugal, and Greece suffer from housing declines. Even Ireland has joined that bloc.
A compromise will be worked out, more like a gang-up against the Germans. In my view, the 143 target is still on the board, as the euro 20-week moving average serves as a few logs on the roadway. In time, a cleared path down a little more.
Much of the euro rise has been predicated in the last year or more upon continued rate hikes. Not only will they not happen, but rate cuts will be more the norm.
The Competing Currency War ensures it. The US Federal Reserve has exported its monetary ease policy. Foreign currencies simply cannot fight it.
Jim Willie is Editor, Hat Trick Letter, 321gold.com