Gold Up on Greece Sovereign Debt Concerns

Gold and Greece Sovereign Debt

Concerns over the ongoing Greek sovereign debt helped buoy gold up again, as it is the primary mover of gold prices at this time, decoupled from the usual movement in opposite directions with the U.S. dollar.

This has become a consistent theme over the last several weeks as the usual inverse relationship between gold and the U.S. dollar continues to weaken.

The renewed concerns over the sovereign debt issue in Greece was an official saying they're going to look for aid from the International Monetary Fund in the early days of April, seeming to imply the public promises of support from the European Union may have been more talk than possible action. Germany has resisted the aid strongly, although it's no longer publicly stating that fact any longer.

The bottom line is gold is being considered a place of safety beyond anything else at this time, and that will overcome the inverse relationship with the U.S. dollar for some time to come, as long as we continue in the recession and economic debt crisis.