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<p>[QUOTE=&quot;InfleXion, post: 1449760, member: 29012&quot;]Greece is the litmus test for Spain, Italy, and Portugal as to how the Euro situation will play out. Anything that happens there will probably happen to these other nations, some of which have much larger economies. If Greece is staying in the Euro then risk-on, otherwise it&#039;s risk-off as they would default on their debts and a lot of banks holding that debt would take the hit, thus requiring they liquidate other assets to to fill the void. This would not only cause the price of all commodities to drop including gold, but the safe haven demand of the USD would also push down prices in dollar denominated terms as people flee the Euro. The market knows this and every time the rumor mill swings one way or the other it moves accordingly in anticipation. The powers that be also know this and use the rumor mill to their advantage. Gold&#039;s safe haven demand does not come into play right away because it takes longer for the average person who does not understand the nature of money realize it is safer than other paper alternatives.[/QUOTE]</p><p><br /></p>

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