Gold, silver, oil and most commodities took a hit Wednesday as the Euro ($XEU) broke below the 135 support level. Most analysts are looking for it to retrace towards it's recent lows of around 125. On the GOLD:EURO ratio- it is hovering just around 8-to-1 as most Europeans continue to buy gold as a hedge against their gov't debt issues. Some people are citing a 'strong' dollar...Itz doesn't agree. That it is more of a weaker Euro and stable dollar situation. Gold could have a downside risk of $1000 and the Euro towards 125 to maintain the 8:1 ratio. On a weekly chart the Euro is over sold, looks like a final leg down in the next few weeks could play out.
Itz Pix exited the gold mining etf GDX, buy still maintains Yamana (AUY) & Silver Wheaton (SLW) in it's portfolio. One shouldn't totally exit the gold position, a good reason to buy gold is the fact that the South Korean central bank said that it will start to buy gold and the weakness of euro.
Below is a video from CNBC & a rep from Fitch, which has some interesting comments on the downgrading of Portugal debt.
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