So far this week Gold has covered a $64.80 range with a low of $1184.40 ( Monday 5/10) and a high of $1249.20 (Wednesday 5/12). This latest rally has been fueled by the uncertainty of the debt crisis rescue package implemented in the Euro Region. On Monday (5/10) we learned the European Union and the (IMF) International Monetary Fund agreed to a monumental 720 billion Euro aid package in a move to support the heavily indebted nations and to preserve their currency. This sent a vote of confidence to the region and sent the equity markets higher and temporarily halted the gold rally and actually sent it $9.60 lower for the session. However , since then many financial
analysts , economists, and savvy investors have questioned the ability of those smaller Euro "debtor" nations to significantly cut deficits enough and more importantly repay the loans. The concern is also over the vast amount of Euro's that will be printed in order to inject money into the economies of these needy nations. The consensus has decided the whenever you print more it becomes "WORTH LESS".... This has brought out global fears of pending inflation and since gold and silver have a tendency to perform better than most commodities during inflationary times you can certainly understand the fuel behind this latest metals rally. It has clearly been a stampede to safer haven investments.