Is it time to get back into gold when prices are holding out on a strong US dollar?

And there’s the million doolar question: Is it time to get back into gold when prices are holding out on a stronger US dollar whilst Europe and the US continue to see huge economic problems on the horizon.

The current price of gold moved higher to $1591.50 per ounce this morning as the US dollar remains mixed against the euro despite warnings from policymakers that the crisis in Europe is not over.

Yesterday, Germany’s central bank expressed concerns about the euro zone crisis and the European Central Bank’s moves to stem it. Germany’s Bundesbank said the euro zone crisis, which has eased as a result of the ECB’s funding promises, was not over, and that it had set aside billions more euros against what it deems risky ECB moves.

Latest Gold Price

Gold in euros rose to its highest level this month at €1229 an ounce, whilst an ounce of gold in UK sterling is at £1064. An ounce of gold in US dollars is at $1591.50.

US Dollar Index – Clues

The US Dollar Index, which tracks the greenback against a basket of major world currencies moved to a seven month high yesterday and is staring at the 83 mark this morning. The Index is currently at 82.940. The Dollar Index last broke through 83 back in August 2012, which interestingly enough marked the point where gold prices dipped below $1600 an ounce last year.

So the relation between gold prices and the US dollar remain intact, however economic issues in Europe may well have investors piling back into the safe haven metal as the spotlight is thrown back on the euro zone crisis amid a political stalemate in Italy, investors are scrambling for beaten down safe havens, and may well return to scooping up gold futures, which have fallen sharply in recent months.

Gold continues to be a good place to park some funds and for this reason, I feel the metal will continue to attract support at around $1,550.

.

You can like our page on Facebook and keep up to date with the latest oil, gold, dollar and euro news with liveoilprices.
……………………………………………………….

Our website is now fully optimised for viewing through mobile devices, tablets and of course standard computers.

This article was written by: JR @ liveoilprices.co.uk

You can also share this story using the social media below:

Go here to see the original: 
Is it time to get back into gold when prices are holding out on a strong US dollar?