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Could the Euro's Crash
Bring Gold's Price Down?

The euro is the US dollar's greatest rival. It's very likely that if the euro suffers devaluation or, if it crashes or any other scenario that affects the value and/or role of the euro as an exchange asset, the dollar will gain from it.

And, we know that precious metals like gold and silver are moving in opposite direction with the US dollar (the vast majority of the time) - indeed, it's plausible that if the US dollar's greatest rival gets affected, then gold and silver prices could take a dip.

Of course - it also depends on which forces are stronger and the nature of the euro crash (is a crash really occurs). Otherwise said: it's essential how the euro devalues, not only the fact that it devalues.

If the Europeans gain appetite for precious metals before they expect the crash, then they might as well run towards bullion rather than the US dollar.

But, if the euro crash or devaluation occurs rapidly and the masses don't have get enough appetite for precious metals, then people might as well run to the dollar as a safe haven (instead of turning to bullion buying).

Because the dollar is more liquid and precious metals are harder to trade, it's more likely that those running from the euro will in fact invest in US dollars. This will push the dollar's price high and gold and silver down.

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