Gold in a World of Failing Government

The majority of people still don't really understand the importance of gold, as they look at it primarily as an investment rather than a hedge against disaster and a protector of wealth.

This is why even in the midst of a failing global economy investors aren't buying up some physical gold as part of their financial strategy.

In some parts of the world, especially Europe, there is the very real possibility of social upheaval as the unemployment rate continues to climb in nations such as Greece, Spain, Ireland and Portugal. Young people have been hit the hardest, and of course are most likely to look for a scapegoat if things begin to unravel and a catalysts launches protest across the region. For no other reason than that people should have some physical gold on hand to protect them against the potential fallout from such a scenario that is increasingly probable.

We shouldn't pay attention to the financial media, as overall, around the world, the media has to be considered almost another arm of the government, as it prints out or reports on TV and the Internet pretty much what world leaders want to be reported on, unless the situation is so obvious there is no way it can be hidden.

Just look at recent stories of a recovery and economic healing even though the economies around the world are a disaster. You would think there was some type of economic revival going on the way most of the mainstream media asserts increasing economic health.

Whether you believe it or not (and you should), everyone that has wealth to protect should have some gold on hand because once unrest arrives or inflation begins to soar, the price of gold and silver will skyrocket, and the cost will be prohibitive for many seeking to buy some gold at that time, if it is available at all.

The major reason to own gold isn't for the purpose of building wealth, but protecting it and having something of value in case a worst-case-scenario plays itself out.

It's not a matter of if, but only where and when, as well as how widely it'll spread, concerning the surety of social unrest of some type breaking out in the world beyond the Middle East. 

Those holding gold will be positioned to ride it out better than those that are looking for equities, bonds and cash to sustain them.

Think of gold first of all as a safe haven, and only secondarily as something that can be used to grow wealth. And for physical gold, it's real value is solely in protection and little else. That must be understood if you're going to position yourself for the inevitable breakdown approaching, even if it doesn't happen in the specific country you live in.

Don't think if people storm banks and governments that you'll be spared some of the pain as far as financially goes, as now that almost everything is connected, what happens in one part of the world, especially if it were Europe or important parts of Asia, that it won't affect everyone around the world. It will. Be prepared by holding physical gold.

Spain Gets $125 Billion Bailout from Euro Zone

The question about Spain's economic future has been answered in the short term, as finance ministers in the euro zone came to an agreement to lend the country up to $125 billion to shore up its weakened banks.

While it wasn't a total surprise Spain would get aid, the amount did raise some eyebrows, as it was a lot more than expected.

Even though there is up to $125 billion on the table, the exact amount to be lent is still being hashed out, and won't be decided for about a week.

This of course will be hailed as a great moment, but in fact it is a disaster, and will exasperate the financial health of the region over time.

Until there are significant austerity measures taken over time, there will be no solutions to Europe's economic woes, as Keynesianism has proven to be a failed economic theory and practice.

The amount announced to be on the table for Spain was for media consumption and dissemination, as it will help to calm extremely jittery markets, as fear of contagion was reaching a fever pitch, almost as bad as the very real contagion itself, that has only had the can kicked down the road once again, only delaying the inevitable day of reckoning.

The upcoming Greek elections on June 17 could rain a lot on the euro zone parade if the people of the country vote for the country to leave the zone.

Greece isn't too important, as its economy is rather small and insignificant in contrast to Spain's, but it could be the first domino to fall in what will eventually become a string of dominoes.

That's not really a bad thing, as Europe would be much stronger without the deadbeat nations attempting to extract more money from the productive European nations.

It'll be fun to see the pathetic dream of those wanting a one-world order blasted apart by the inevitable, upcoming events. Hang onto your seat, it's going to be a fascinating ride as it unfolds.

Barrick (ABX) (EGO) (NEM) Jump Monday

After starting off strong on Monday, gold futures were up and down the rest of the session, closing the day at $1,588.70 per ounce for June delivery, down slightly from Friday's close.

Barrick Gold (NYSE: ABX), Eldorado Gold (NYSE:EGO) and Newmont Mining (NYSE:NEM) all finished up on the day, as the U.S. dollar fell against the euro.

It appears gold is ready to move up again after it dropped to $1,527 an ounce last week, the lowest level in 2012. That reversed significantly when gold traders scrambled to cover their short positions.

Expectations are when gold prices move slightly above $1,600, investors will jump back into the gold market.

Even so, the volatility of the price of gold because of the perceived safety of the U.S. dollar, which has been strengthening of late, along with the sovereign debt crisis in Europe, has investors jittery, and most are buying on dips until they get more clarity.

It's highly probable the greenback will weaken sometime soon, as it's a flawed currency itself, although it's been strong against the euro lately because of the financial crisis in the euro zone.

The question is whether the U.S. dollar will rebound yet again as the euro falters in full view of the world.

If it does, it makes gold more expensive for other currencies, putting even more downward pressure on it.

Until the crisis in Greece is resolved, we'll see this being the ongoing scenario. Much of this is now driven by headlines.

IAMGOLD (IAG) (NG) (AUY) (KGC) Close up as Gold Prices Climb Again

IAMGOLD Corporation (NYSE:IAG), NovaGold Resources Inc. (AMEX:NG), Yamana Gold (NYSE:AUY) and Kinross Gold Corp (NYSE:KGC) as the gold price climbed on the credit downgrade of Portugal by Moody's (NYSE:MCO) and concerns China may follow, as it battles inflation.

The gold price jumped $14.80 to $1,527 an ounce at the Comex division of the New York Mercantile Exchange Wednesday after China announced it would be boosting interest rates for the third time in 2011. The price of gold dropped as low as $1,510 an ounce before rebounding up to $1,529 after the People’s Bank of China said that the one-year lending rate will be increased from 6.31 percent to 6.56 percent, going into effect Thursday.

Next week China will release its consumer price index figures, which are expected to jump above 6 percent.

With Portugal downgraded to junk status, Greece with only a promise to implement austerity measures, and the U.S. sinking into economic oblivion, safe-haven assets like gold continue to be the focus of investors, as the clueless Obama administration and Democrats continue to battle to raise the debt ceiling at a time when spending needs to be cut back.

With Republicans being voted in to fight against outrageous government spending, they are under pressure to come through in fighting against raising the debt ceiling and cutting back on the size of government and it spending, it is a momentous time for them, as they have a chance to secure long-term rule if they have an ounce of courage and integrity to keep their promises.

Kinross closed at $16.67, gaining $0.13, or 0.79 percent. Yamana closed at $12.52, jumping $0.35, or 2.88 percent. NovaGold ended the session at $10.22, up $0.11, or 1.09 percent. Iamgold closed at $19.25, rising $0.04, or 0.21 percent.

Miners (ABX) (GG) (NEM) Close Up While Gold Falls

Newmont Mining (NYSE:NEM), Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) closed up Thursday, even as gold prices fell.

Gold closed down on the last day of the quarter, as prices weakened after Greece voted for austerity measures in order to prevent a debt default by securing financial aid.

Even so, gold still finished the quarter in positive territory because of an ongoing extremely weak global economy.

As for the sovereign debt crisis in Europe, it continues to fluctuate back and forth as the EU battles to keep countries from becoming the first domino to drop in what could quickly become a contagion. The sovereign debt situation in Europe is far from being solved or safe.

Gold closed the quarter up by close to five percent, settling at $1,502.80, down $7.60 for August futures. Spot gold was trading at just over $1,500 an ounce.

The inability of gold to rally on a weak U.S. dollar has some concerned it could be a negative sign for the next quarter. Against a basket of currencies the greenback was down half a percent. Most of that on an expected increase in interest rates in Europe.

Silver also closed down Thursday, ending the quarter down 7.5 percent. If it doesn't find more support, many believe it could drop significantly more before it begins its upward climb again. Silver had nine straight positive quarters before this one.

Newmont Mining closed at $53.97, gaining $0.45, or 0.84 percent. Goldcorp closed at $48.27, up $0.02, or 0.04 percent. Barrick Gold closed at $45.29, rising $0.21, or 0.47 percent.

Silver Wheaton (SLW) Soars on Friday

Shares of Silver wheaton (NYSE:SLW) rebounded on Friday as concerns over the faltering European Union and its sovereign debt crisis pushed silver and gold prices up as investors fled to safety.

Silver closed at $35.16, up 0.6 percent, but down by about 30 percent since a record high on April 28 of $49.51.

June gold closed on Friday at $1,508.90 an ounce, up $16.50, trading in a range of $1,486.40 and $1,515.80.

For the Week gold was up by about 1.15 percent, but still down 4 percent from the all-time high of $1,575 an ounce reached in the early part of May.

Silver Wheaton Corp. operates as a silver streaming company around the world. It generates revenue from royalty deals.

Silver wheaton (SLW) closed Friday at $35.08, up $0.38, or 1.10 percent. It has a market cap of $12.39 billion.

Eldorado Gold (EGO) Jumps on Euro Fears

Eldorado Gold Corp. (NYSE:EGO) closed strong last week as concerns over the faltering European Union over its sovereign debt crisis pushed gold prices up, and gold miners with them.

June gold closed on Friday at $1,508.90 an ounce, up $16.50, trading in a range of $1,486.40 and $1,515.80.

For the Week gold was up by about 1.15 percent, but still down 4 percent from the all-time high of $1,575 an ounce reached in the early part of May.

Silver closed at $35.16, up 0.6 percent, but down by about 30 percent since a record high on April 28 of $49.51.

Eldorado Gold participates in the discovery, exploration, development, production, and reclamation of gold properties in Brazil, the People’s Republic of China, Greece, and Turkey.

Eldorado closed Friday at $15.68, up $0.20, or 1.29 percent. It has a market cap of $8.60 billion.

Kinross Gold (KGC) Up on Euro Fears

Shares of Kinross Gold (NYSE:KGC) closed up on Friday as concerns over the faltering European Union and its sovereign debt crisis pushed gold prices up and gold miners with it.

June gold closed on Friday at $1,508.90 an ounce, up $16.50, trading in a range of $1,486.40 and $1,515.80.

For the Week gold was up by about 1.15 percent, but still down 4 percent from the all-time high of $1,575 an ounce reached in the early part of May.

Silver closed at $35.16, up 0.6 percent, but down by about 30 percent since a record high on April 28 of $49.51.

Kinross Gold Corporation participates in mining and processing gold ores. It also is involved in the exploration and acquisition of gold properties.

Kinross closed Friday at $14.94, up $0.08, or 0.54 percent. It has a market cap of $16.97 billion.

Portugal Rejecting Austerity Measures, Government Ready to Collapse

In what could be one of the most underreported financial stories, possibly bordering in the dereletion of duty by journalists and media outlets, the EU is again in danger concerning the ongoing sovereign debt crisis, as main opposition parties in Portugal are now saying the won't back a new set of austerity measures to battle the out-of-control debt the country has in place.

The new steps are likely to be rejected in a parliamentary vote expected Wednesday and the timing could not be worse. A defeat in the vote, Prime Minister Jose Socrates warned, would trigger his government's resignation, consigning Portugal to at least two months of political limbo just as officials were hoping to boost investor confidence in the country's future.

"At this point, a political crisis is a big push towards the country resorting to outside help," Finance Minister Fernando Teixeira dos Santos said.

The national political crisis also threatens to set back Europe's broader plan to stamp out the debt market jitters -- leaders at a two-day summit starting Thursday will seek to ratify key changes to the bloc's rescue fund and spare Portugal the need to surrender policy decisions to outside authorities through a bailout.

The new European policy would allow the fund to purchase government debt, easing market pressure which has driven the borrowing costs of weak countries to unsustainable levels. European leaders hope the response will herald the end of the debt crisis that has dragged on for more than a year.

That deal, however, was contingent on Portugal implementing the austerity measures that are unlikely to survive the country's political standoff.

Portugal's center-left Socialist government, which has insisted it doesn't want or need a bailout, won the backing of the European Central Bank and the European Commission for that new austerity plan. The ECB has already been helping Portugal by buying its government debt and providing funds to its banks.

The condition of the EU in reference to sovereign debt is tenuous at the very best, and any set of events could trigger the contagion they're in deathly fear of, regardless of the bailing out of smaller countries giving the appearance that the matter has been taken care of.

Greece, and now Portugal, show that the underlying reasons for the debt crisis in the first place, the socialist ideology of governments taking the place of God and being the provider of just about everything, has proven again to be a fallacy and based in an unsustainable idea that you can continue to steal from the productive and redistribute wealth to the unproductive.




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Citigroup (NYSE:C), Goldman (NYSE:GS) on Possible Greek Default Risk

While a lot of the financial media don't report the extraordinary dangers still inherent in the ongoing sovereign debt crisis in Europe, that doesn't take away from the reality of the fact.

Mostly how the crisis is reported is when an event happens they report on it, and then the EU and its spokesman will say they're ready to intervene to prop up the countries, and then that's basically considered the end of the story. Mix and repeat.

Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) representatives note that the crisis isn't going away, and even Greece is still in danger of defaulting.

German chairman of Goldman Sachs, Alexander Dibelius, said today concerning the potential for Greece to still default, “It cannot be allowed to be led to a Greek default. For this reason a restructuring of the Greek debt is necessary,” Dibelius said in the newspaper 'Bild,' saying there was a need for “a mixture of support, discipline and pressure for Greece in order (for it to) return to the road of virtue.”

Chief analyst for Citigroup, Professor Willem Buiter, added that there is a need for Greece to cut 50 percent of its debt. Buiter added Greek political leaders continue to put off the tough decision needed to get the country back to fiscal health.

The reason Greece is so important isn't because of the size of the debt in relationship to the overall European economy, but it's important because of its symbolism as to the problem the EU and the euro faces, and continues to be a poster child as to why socialism doesn't work, as it makes promises that cannot be kept or met.

The domino effect that would probably result from a Greek default is what is at issue, and we have seen how quickly other countries in the euro-zone had to be propped up after Greece had to be.

If there is a Greek default, the same would happen, and the EU would, as it is, effectively cease to exist, and the euro would struggle to survive.

Gold Prices Today Up on Korean Military Tensions

Military tension between North and South Korea have pushed up the price of gold today, as gold futures on the Comex division of the New York Mercantile Exchange increased by $16.40, or 1.2%, to $1,374.40 an ounce.

It underscores the skittishness of investors in volatile times, as the bailout of Ireland revealed and the news Greece may still be hiding the depth of its deficit problem.

The European Union sovereign debt crisis is worsened by the fact there is little to trust in assertions made by many political leaders who are under enormous pressure domestically, having made promises they aren't able to meet, as socialism always results in.

They've also created a culture of entitlement, which those receiving the entitlements rise up in anger over when they're cut back because there has never been the money to pay for them.

For gold, these and many other factors like the quantitative easing put into play again by the Federal Reserve will support gold for some time to come.

The fall in value of the euro against the U.S. dollar is all that has been keeping gold from skyrocketing even further.

Spot gold was trading at $1,377.90 an ounce, up by $11.50.

Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM) Positive in Afternoon Trading

Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM) have all moved into positive territory as the trading session went on today, with spot gold prices moving up to $1,259.90, or $5.80 an ounce.

Gold prices had been down in the earlier part of the day, as mixed economic news kept things mostly level.

It seems the announcement Ireland would in fact be bailed out would ultimately move the price of gold up, as the euro strengthened and U.S. dollar fell in value.

Gold may be ready to surge again after the market has digested the news China is going to battle inflation and the Federal Reserve implement another round of quantitative easing.

Although opposing factors in gold prices, it seems the inflationary move by the Fed is weighing more on gold than any other element now, and that will drive prices, along with the growing realization Europe is far worse off than believed, and as Greece has revealed, may still be hiding the levels of deficits existing in the regions.

Barrick was trading at $50.08, rising by $0.31, or 0.62 percent at 2:10 PM EST. Newmont was at $60.74, gaining $0.40, or 0.66 percent. Goldcorp was moving to $46.02, increasing by $0.28, or 0.59 percent.

Moody's (NYSE:MCO): Ireland May Go "Credit Negative"

After the expected announcement Ireland would have to be bailed out, despite the anemic denials, Moody's (NYSE:MCO) said the increase in the amount of debt held by the country may result in a “credit negative” for them.

Even so, it is expected for the country to undergo a multi-notch downgrade, but still have their rating remain within the investment-grade category, although it's not a 100 percent certainty.

The two major uses of the capital by Ireland will be to use about $130 billion of it in order to keep them from selling bonds, and the second would be to supply lenders with capital via a "contingent" capital fund.

This will probably result in the fall of the Irish ruling coalition in Ireland, with the likelihood of elections held in January as as consequence.

Concerns this may generate in a domino effect in Europe is obvious, and uncertainty over the already bailed out Greece has re-emerged, as it appears they may still be dishonest about the size of the deficit the have.

Citigroup (NYSE:C) Sees Greek, Irish, Portuguese Bonds Continuing to Fall

As risks increase for the sovereign debt of Greece, Ireland and Portugal, Citigroup (NYSE:C) says they see bonds in the countries continuing to fall, as the crisis grows.

Citigroup said, “Ireland, Portugal and Greece have underperformed significantly, but we do not think by anywhere near far enough yet. There’s a long way further to go if the situation deteriorates.”

The yield on Irish bonds rose for the third day in a row, with the yield on 10-year bonds increasing by three basis points to 8.28 percent. Bonds from Portugal fell four basis points to 6.88 percent and in Greece they fell one basis point to 11.71 percent.

The other problem is no one knows how much corruption is still involved in the sovereign debt crisis, as Greece recently stated their deficits were larger than they believed, creating uncertainty as to competency or honesty in the matter, both of which are detrimental.

There seems to be a nod and a wink toward these and other countries as well, as the European Union apparently is ready to do anything in order to survive, even if it backfires and punishes the euro like it has been, which could do more to unravel the EU than anything else.

Gold Prices Today Pressing Toward Largest Gain in Two Weeks

The anticipated and expected drop in the value of the U.S. dollar is playing a big part in the increase in gold prices today, as it dropped, pushing up the price of commodities, and gold in particular.

Gold futures for December delivery on the Comex in New York rose to $17.70, to $1,354.60 an ounce at about 11:20 AM EDT. That is the largest gain since November 4, if it is able to close at that, or higher.

Spot gold prices were up by $18.30, rising to $1,354.10 an ounce at 1:49 PM EDT.

The only reason the U.S. dollar was stronger recently was because its move up against the euro, which was again under pressure because of the seemingly endless sovereign debt crisis, which is far from over, and is still hidden in obscurity and dishonesty in some countries, making it difficult to ascertain the depth of the crisis.

Greece's recent announcement they had understated the extent of their deficit is a case in point.

The question for gold now is if the correction is over or if there is more room to go down.

Barring unforeseen circumstances, it seems gold prices may be ready to take off again, but only time will tell if that's the correct assessment.

Gold Correction Drives Yamana Gold (NYSE:AUY), Eldorado Gold (NYSE:EGO), Novagold (AMEX:NG) Down

In what can now safely be identified as a gold correction, the price of gold and gold mining shares has been plunging, and is affecting major gold miners and others like Yamana Gold, Inc. (NYSE:AUY), Eldorado Gold Corp Ltd (NYSE:EGO) Novagold Resources Inc (AMEX:NG).

Today the news driving the gold miners' prices down is primarily the decision by South Korea to raise its interest rates by 25 basis points to 2.50. Also weighing on the market is what other countries in the region may follow suit, especially China.

The other factor is the weakness of the euro from the ongoing sovereign debt debacle in the European Union, which is now highlighted by the probability Ireland will eventually have to be bailed out, and the news from Greece that somehow they understated their deficit. That hints and dishonesty and uncertainty more than anything, which underscores the inability for investors and analysts to know the real condition of the EU, which is in reality fighting to maintain its existence.

This has artificially propped up the U.S. dollar, which has added to the drop in gold prices today.

NovaGold was trading at $13.65, falling $0.53, or 3.74 percent at 2:55 PM EST. Eldorado was at $16.56, losing $0.50, or 2.93 percent. Yamana was down to $11.22, decreasing by $0.24, or 2.09 percent.

Barrick (NYSE:ABX), Newmont (NYSE:NEM), Goldcorp (NYSE:GG) Pressured Down on Falling Gold Prices

At Everything Gold we like to report on key gold miners whenever there is a major price move in gold prices, and today that's no exception, as gold is getting hammered again, and major gold miners like Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Goldcorp Inc. (NYSE:GG) are all fallng in response.

What is moving gold prices down today are South Korea raising interest rates, Ireland's sovereign debt crisis, and the resultant fall in the euro against the U.S. dollar.

There is also the emergence of the story that other countries like Greece may still be fudging on their deficit numbers, as today they also announced the deficit may be larger than they thought.

That is an old story of dishonesty and/or incompetence. They still refuse to end their socialist and entitlement ways, not willing to admit socialism isn't a sustainable economic system. The EU better learn it quickly and take appropriate action, as bailout after bailout won't work if the existing systems are kept in place, even with the alleged "austerity" measures being put in place.

What austerity measures count if a country like Greece can simply say they miscalculated their deficit? They simply ask for more handouts as a response.

The sovereign debt crisis is worse than being revealed and reported, and every time a bailout is announced, the financial press forgets about it as if the problem is taken care of, while the simmering failure of socialism refuses to be acknowledged.

Consequently the U.S. dollar is being propped up at this time because of this, adding the downward pressure on gold prices. It's not that the U.S. dollar is improving, it's just that the euro is much worse than it is. That will be the case until Ireland receives their bailout, giving the impression economic health and the euro is restored. This will ultimately get worse before it gets better, as it's questionable as to whether or not the announced austerity programs are in fact being followed.

The other element of interest rates will also be an ongoing factor in the rise and fall of gold prices, as every time a country announces they're raising their interest rates, gold prices will surely take a hit, although China announcing it will be much more significant than a smaller Asian country announcing it.

If China raises interest rates, then the price of gold should have the overall impact included in the price, and that will give a better view of where gold will go from there.

It looks like gold miners will also move up and down with gold, which will give investors some headaches, but better price points to get back in. While traders, assuming they're on the right side of the play, could enjoy some major profits on the inevitable huge price swings that could be a way of life for gold in the near term.

Ireland, Greece, Europe, and the Death of Socialism

It's amusing to look at the outrage from European countries over the stimulus measures of the Federal Reserve which will cause more economic problems domestically and around the world, as Europe has been pushing for socialism to be embraced by America all the while their own socialist experiment has been crumbling all around them.

No one has described the inherent weakness of socialism better than former British Prime Minister Margaret Thatcher, who said the problem with it is you eventually run out of other people's money, and that's what is happening in Europe, as the debacle surrounding Greece and Ireland have shown, and they're far from being the only countries having the problems, although the majority of media have been far less than aggressive in exposing the real risks.

The response of those who have been parasites off of the productive in Europe is predictable, as they've been rioting over not being able to continue to siphon off money, as there is no more to give to them; at least in any sustainable manner. As Thatcher said, the money of other people has indeed run out, and now it's time to end what many have always seen as an experiment doomed to fail.

Now that the U.S. has partially embraced socialism itself, it is now facing similar challenges, and politicians so far are refusing to take austerity measures to combat it. The Federal Reserve is just going to print another $600 billion in order to mask the ongoing problem, and kick the can to the future.

The recent bailout of Greece and other countries in the EU confirms they don't work. Originally it was asserted that the bailout would last for several years, when it fact all it did was offer relief for several months.

Europe is probably a worst disaster than America at this time, and the sovereign debt crisis continues even as the announcement it was over is barely out of the mouths of its political and economic leaders.

Until they admit socialism is a dead theory, everything they do will only be a band-aide on the problem. Not only is socialism a dead theory in, well, theory, it's dead empirically, as we've seen it's total failure and the consequences of implementing it before our eyes.

Governments will be forced to slash their foolish programs and start to manage their promises, as they aren't able to be met, and never were able to be met.

America will have to do the same very quickly or end up in the same place Europe is heading, and is more than likely, already in.

These circumstances will be very beneficial to gold investors, and we're far from any real recovery. Most things central banks are doing are only making the situation worse. We need to keep looking for market corrections as buying opportunities at this time, as we're in for a long and wild ride with no light at the end of the tunnel.

Goldman (NYSE:GS) Economic Report Support Gold Price Moving Up

Almost everything reported concerning the U.S. economy today confirms the ongoing recession, and Goldman Sachs (NYSE:GS) believe there's no doubt the Federal Reserve will inflate via quantitative easing, adding more support to gold, although that's probably priced into the price of gold at this time.

How much it's priced in will be determined by what the Federal Reserve does and to what extent.

There's no doubt the U.S. dollar will continue to weaken, which will benefit gold, and lower interest rates will remain in place.

News today that the sovereign debt of Greece had been understated and will have to be upwardly revised for the last several years is good for gold, as well as the downgrade of Ireland debt by Fitch Ratings and is being watched closely by Moody's (NYSE:MC), mostly on concerns over the cost related to the banking sector in the countries.

Private employers in America also reported they cut 39,000 jobs in September, where analysts were looking for an increase of 24,000 for the month.

Currencies in other countries continue to weaken against gold as well, confirming there is no bubble in gold, and nothing is out there which would suggest that should or will change any time soon.

Gold Prices Fall Today on US Dollar, EU and Inflation

Gold prices today fell again this week, dropping $20.10 for August delivery, to $1,188.20 an ounce. Spot gold prices ended at $1,193.00, A decline of $15.40.

Several factors play a part in the gold price fall. First, the misguided idea that the sovereign debt crisis in Europe has been handled, or at least improved, mostly based on Greece begin able to sell bonds to the private sector. Second, inflation remains relatively mild in the U.S., and with recent data showing core consumer prices rising only 0.2% in June, had traders looking elsewhere for safety.

Finally, the U.S. dollar strengthened more, while the euro also made gains, seeming to imply that gold is unwinding against the euro.

With these various factors in play, investors are, for now, looking elsewhere to put there money, even though the sovereign debt crisis in Europe is, the American economy is in shambles, and safety should continue to be on the minds of investors.

This is the fourth week in a row the gold price have fallen, although it is still finding support in difficult circumstances.