via Kitco - Global Forex Real Time
The three currencies in the world that are providing impetus for the gold price happen to be the Indian Rupee with its current account deficit and 30% decline, and the Russian Ruble, with the recent embargoes, and the Brazillian Real, with its acknowledged consumer debt problem.
These currencies are at the heart of the BRICs thesis and are presently supporting gold prices, since their prices have fallen behind the $U.S. value. A depeg of the Yuan and a decline would provide more impetus for the same.
An LTCM style disaster is brewing, only the global basis encompasses the investment thesis since 2002. After the gold price correction, these currencies have seen declines, putting their gold price above the U.S. chart. (meaning their currency is flagging vis a vis $US)
Kitco Ruppee Chart
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