By Dan Norcini
The move lower in gold today was attributed to easing concerns over Greece and consequently Europe in general which led some to move back into the Euro and out of gold as fears subsided and safe haven trades were reversed.

The thinking among some is that the worst is over in Europe and that the Euro is cheap. Even the British Pound received a lift today. So too was the Swiss Franc as “Buy Europe” was on the table today.

The result was that while the Dollar here was weaker here, gold moved lower as did the mining stocks.

It was a strange day in the commodity markets for while in general the weaker Dollar has seen algorithm buying in this sector, crude oil, copper, silver, were all down. Even corn was lower. Even more strange was to see the bonds higher here since they tend to move in tandem with the Dollar since a falling Dollar is seen as a sign that “risk” is back in.

Truthfully, I cannot make much sense out of any of this today. It seems more a case of position unwinding in many of these markets than anything, particularly coming on a Friday which at times can make getting a read on things iffy in the first place.

The HUI will be okay as long as it can stay above 405. Failure there and it will tend to move towards the 390 level.

The US Dollar is flirting very dangerously with the 79.80 – 80.00 level. A breach of that level that stays down for at least a day, will send the speculative longs, which are still loaded up in this market, packing. Eventually that will get the attention of gold and provide it some good buying support once this repositioning in regards to Europe eases.

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