"The plight of Hungary highlights the Eurozone's dilemma. E.U. lawmakers want "more Europe" and less financial nationalism. Hungary's current government is trying to limit the independence of its central bank causing its request for E.U. and I.M.F. to be viewed with a raised eyebrow. For the Eurozone to succeed the Eurozone, not any individual nation, will eventually have to dominate national financial interests. This leaves the economically strong members of the Eurozone dominant. Can such a path succeed in the future? We believe that the trials and tribulations that lie ahead will be positive for gold and eventually, after shedding the weakest of the weaker members, positive for the euro.
"Right now, the demand for gold is resurgent. The pattern that New York takes down the gold price has changed in the last couple of days, as we saw yesterday when it was New York that lifted the price."