Thanks to all the media hype about the Greek elections, many people around the world were beguiled into believing that this small country had the power to decide the fate of the euro itself as well as the financial state of the entire world.
In a trading pattern that has become all too familiar, almost the minute the US session began on Comex today, the price of gold was sold down by almost $40 an ounce to trade at a five month low of around the $1600 an ounce.
It was not that long ago when Greece was the main concern of global investors, but already most of us have already forgotten about that on-going saga. Now, the global financial crisis has moved from Greece to Spain, with Italy waiting to join this elite club.
Much of the selling pressure in the gold market can be attributed to the current strong US dollar which I believe is a total aberration. Since May this year, the greenback has gained more than 6% against a basket of major currencies despite a slew of poor economic data.