Gold has fallen back below the $1100 again, falling to $1091 thus far. EUR/USD has been dragged down again, retesting the 1.4300 area again. When an uber-hawk like the ECB’s Stark sees no inflation to worry about for the next two years, there is little need to hold gold at nose-bleed levels, traders seem to think.
It will be interesting to see if first-time buyers of gold, emerging markets, commodities and other risk assets get cold feet and start to pull money off the table. That should be dollar supportive, if it happens, as money will flow back on-shore into the US.
