The gold price has fallen to its lowest in 5 months, while the silver price has fallen daily for the last week, although the spot gold price was up 0.3 percent at $1,549.04 an ounce from a low of $1,527.00. it has a lot of investors worried. It has made people question the fact is gold a good hedge against the demise of currencies, this turbulent week is a result of what is happening in the Eurozone, namely Greece, investors are investing in the dollar, The euro has hit a four-month low against the dollar because of the political situation in Greece people, they have failed to form a coalition, which means there will be new polls next month. Investors are afraid that Greece could be forced to leave the Euro.
Merkel & Hollande had there first meeting yesterday, which was according to Merkel more general, but time is running out this crisis is the biggest that the Eurozone has faced yet. The euro fell as much as 0.7% to $1.2681 early today, but is recovering on the announcement from Merkel and Hollande that they are committed to Greece and will not let it happen that they will exit the Euro.
So the gold Price is down, and Im going to buy Gold. This is just a fluctuation in the markets, its normal, Gold should not be measured against the price in currency , but what is its buying power.
