Gold Prices Soar Against Euro Amid Global Debt Crisis

The gold market has been experiencing significant gains against various currencies, including the euro. According to Christopher Lewis, a technical analyst and market commentator at DailyForex, this is an indication of governments around the world being 'neck-deep in debt'. The US Treasury market's decision to buy twice as much on the long end of the yield curve next month has contributed to gold's strong performance against the U.S. dollar.

Gold's price has been rising steadily, and it appears to be aiming for the €4,000 level. However, Lewis notes that there may be some resistance at this point, and the market could experience a short-term pullback. The 50-day EMA breaking above the 200-day EMA is known as the golden cross, which can be a bullish sign.

Despite potential headwinds, gold is expected to remain strong due to its independent nature. Lewis also mentions that other currencies, such as the Japanese yen, may be susceptible to gold's price fluctuations.