Gold's Rise vs. the Euro

We're seeing another day that might confuse some investors, with the U.S. dollar and gold rising in tandem. As I discussed in this week's podcast, what's happening is this: gold is rising modestly against the Greenback, while the U.S. dollar is also rising against most other currrencies.

Thus, gold is really flying vs. the Euro, as can be seen in this three year chart of the gold/Euro ratio:

These are all-time highs for gold vs. the Common Unit, but the metal is also on the rise against formerly high-flying currencies such as the Aussie dollar:

(charts courtesy of www.stockcharts.com)

The U.S. dollar remains the safe haven compared to the rest of the world's paper currencies. For now, at least, the only true alternative currency to the dollar is gold, which explains recent action and why dollar collapse trades are getting torched.