Euro Gold Keeps On Rising, Dollar Gold Rallying With US Dollar

Today, the European Central Bank expanded stimulus measures. ECB President Mario Draghi said the bank will buy 60 billion euros a month of assets through September 2016. According to Bloomberg, The Executive Board earlier proposed buying 50 billion euros ($58 billion) of bonds a month through December 2016, according to two euro-area central-bank officials.

As one could expect, the Euro was hit hard as of the moment those measures were announced. With the prospects of a trillion euros being pumped into the market, the value of the Euro logically came down considerably.

As the chart above and below show, when the Euro was selling off, Euro gold was surging much higher. Euro gold rose 4% today.

A truly interesting trend is visible on the following chart. With the Euro being hit hard today, the U.S. Dollar was on the rise, as indicated with the blue line on the chart below. As readers can observe, over the last 4 weeks Dollar gold has been rising along with the U.S. Dollar. Historically, both assets have been negatively correlated. If gold can continue its rise in the midst of a Dollar bull market, it indicates great strength for the metal. In our opinion, it also confirms gold’s safe haven nature, something the market has denied consistently in the last 2.5 years.

Chart courtesy: Sharelynx.com

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Courtesy of http://goldsilverworlds.com/