While the European debt crisis continues to take a toll on the Euro, investors have been pushing up the price of gold. The Euro hit a four year low yesterday with the CurrencyShares Euro Trust (FXE) trading as low as $122.47 yesterday before closing at $123.48.
Whether it’s debt concerns in PIIGS (Portugal, Italy, Ireland, Greece and Spain) or anemic eurozone GDP growth, recent news about the euro has been negative—but maybe that’s a positive for you.
The dollar continues to get stronger against the Euro as concerns about inflation and slowing growth have now spread across the Atlantic. Rydex’s Currency Shares Euro Trust (FXE), an ETF that tracks the Euro, has fallen dramatically since the beginning of August.