Isn’t this interesting. The Euro was in trouble on renewed worries about Greece, and then S&P downgraded US debt. So the Euro stopped sinking against the dollar and guess what? Gold spiked! That was a picture perfect postcard to send home to momma.

What I mean by that is the declining spiral of all currencies is really what is driving the precious metals higher. On a day-to-day basis, it’s not so obvious. But on a day like today, it couldn’t be more obvious. The dollar has been losing its luster as a safe haven. And as that happens, the Euro is the main alternative. But the Euro ain’t that great either.

Some folks might be of the opinion that the spike highs are gonna be it in terms of targets for this week. Heck, silver is not so far from a monthly target of $44.27. If gold gets over $1500, then yes, maybe it’s time to look at a partial exit. But on the other hand, this could be the beginning of a severe decline in equities and a general disgust with both dollars and Euros. So who knows how high gold and silver could go? If we get a convincing close in gold over $1500 sometime soon and stay there, I think $1600  and $50 come into play, for sure.