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It's a fact that gold and the Euro often do move together against the US Dollar day to day. Between the start of 2007 and late March 2008, for example, the Euro and gold moved in the same direction on 291 out of 310 trading days according to Reuters data some 94% of the time.

But the Euro moved in the same direction as crude oil prices on 300 days fully 97% of the time. And no one would claim that the Euro's rise versus the Dollar has stopped the price of petrol from going up on Germany's autobahns.

What's more, both the Euro and gold rose against the Dollar on 170 trading days between Jan. 2007 and late March 2008. So their apparent correlation is built on the plain fact that the US currency has consistently lost value, drip by drip and tick by tick.

On average, the Dollar has lost 0.05% of its value against the Euro every trading day since the start of 2007. Measured in gold, it's lost a little bit more each session, down by 0.06% on average.

Put another way, gold's gain over the Dollar has consistently out stripped the gain for US investors holding Euros. All told and trading just shy of DM 40,000 per kilo equivalent today the Gold Price in Euros has risen by more than 24% for French and German investors since the start of last year.

Will it push higher, breaking new ground above the all time record peak of DM 46,530...? Or might gold now turn tail, falling in the face of below zero real Dollar interest rates and a three decade surge in the European money supply?

The long term chart says gold faces resistance. Either that, or it's about to break into historic new territory as the world has to re learn to conquer inflation.

Adrian Ash runs the research desk at BullionVault, the world's fastest growing gold ownership service. Formerly head of editorial at Fleet Street Publications London's top publisher of financial advice for private investors he was City correspondent for The Daily Reckoning for four years, and is now a regular contributor to 321gold, FinancialSense, GoldSeek, Prudent Bear, SafeHaven and Whiskey Gunpowder among many other leading investment websites. Adrian's views on the Gold Market have been sought by leading news organizations including the Financial Times, AFX Thomson and Der Stern in Germany.

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