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Euro Gold Prices Hit Record as Debt Crisis Escalates

Gold Prices hovered near seven-month highs above $1780 per ounce for most of Friday morning in London – a few Dollars up on where they started the week – while stocks failed to hold early gains after a analysts interpreted Spain’s budget as “laying the groundwork” for a formal bailout. Silver Prices eased to $34.73 per ounce after failing to breach $35, while other commodities were broadly flat and US Treasury bonds gained. Euro Gold Prices meantime remained close to all-time highs hit yesterday. “The debt crisis in the Eurozone has escalated again,” says today’s commodities note from Commerzbank. “Gold should therefore remain in high demand as a store of value and alternative currency. […]

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Gold Prices Slip But Secular Bull Set to Reach $3000 or $5000

US Dollar Gold Prices slipped for the 3rd time this week below $1760 per ounce in London trade on Wednesday, gaining against the Euro and Sterling as those currencies fell faster and rising back towards last week’s new all-time high versus the Swiss Franc. World stock markets extended Tuesday’s late plunge in US equities, knocking 2.4% off the French CAC40 index as the Euro dropped to a 2-week low beneath $1.2850. After anti-austerity protesters clashed last night with police in Madrid, a general strike in Greece brought the country “to a standstill” according to BBC reports, with tens of thousands of people gathered outside parliament in Athens. Commodity prices fell, with crude […]

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ETF Gold Bullion Holdings Hit Record High

ETF Gold Bullion Holdings Hit Record High

Gold bullion prices hovered around $1765 per ounce Tuesday morning in London, 1.8% off last Friday’s seven-month high. “It looks to me like we’ve got a short period of consolidation,” says Standard Chartered analyst Daniel Smith. “[We’ll see] maybe a month of sideways trading possibly and then generally trending higher in the next six months to a year.” Stock markets were also broadly flat as major government bond prices gained, while the Euro recovered early losses ahead of a meeting between the leaders of Germany and the European Central Bank. Tuesday also brought fresh news of central bank gold buying, while SPDR Gold Shares (GLD), the world’s biggest Gold ETF, saw its Gold […]

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Gold Bullion Still a Buy Despite Price Drop

Gold Bullion prices fell to $1757 per ounce Monday morning in London – 1.7% off a seven-month high hit briefly last Friday – as stocks, commodities and the Euro also ticked lower and US Treasuries gained amid signs of ongoing political stalemate in Europe. Silver Bullion dropped to $33.71 per ounce – 4% down from Friday’s high. Despite the falls, analysts continue to forecast higher prices for Gold Bullion, while dealers in India report increased physical demand toward the end of last week as local prices came down. “[There is a] lack of obvious catalysts in the near term to take Gold Prices higher,” says Deutsche Bank analyst Daniel Brebner. “But I do think we […]

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Uptrend Intact for Gold Bullion

Uptrend Intact for Gold Bullion

Spot market Gold Bullion prices held above $1770 per ounce Friday morning in London, a few Dollars off six-month highs set earlier in the week, while stocks and commodities were also broadly flat ahead of a meeting between the leaders of Spain and Italy, with press reports suggesting plans are being discussed for a Spanish bailout. Heading into the weekend, Spot Gold would make its fifth straight weekly gain if it closes above $1770 per ounce later today, while gold in Euros remained within 1% of last year’s all-time high this morning. “The large uptrend is still intact, and it is positive that gold has been able to hold onto […]

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Japan Follows Global Easing Trend, Gold Price Should Decisively Breach $1800 in Q4

The Dollar Gold Price fell to $1772 per ounce Wednesday morning in London, a few hours after hitting its highest level for nearly seven months after the Bank of Japan became the latest central bank to announce further quantitative easing measures. “It seems that the stars are now aligned for gold to move higher,” says Anne-Laure Tremblay, analyst at BNP Paribas. “The next hurdle to overcome will be the $1800 an ounce level, which we expect to be breached decisively in the fourth quarter.” The Silver Price fell to around $34.60 an ounce – having hit $35 a day earlier for the first time since March. Stocks and commodities were little changed on the […]

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Profit Taking Sees Gold Bullion Fall Back from Highs, but Support and Bullish Momentum Seen

Gold Bullion prices hovered just below $1760 per ounce during Tuesday morning’s London trading, 1% off the high hit last week after the US Federal Reserve announced its new open-ended asset purchase program. “Immediate bullish upside momentum will be maintained while the Gold Price trades above Thursday’s low at $1723.69,” reckons Axel Rudolph, senior technical analyst at Commerzbank. “Support above this level can be seen…at $1749.51 and below it at the psychological $1700 level.” Silver Bullion traded in a tight range below $34.20 an ounce this morning – 2.1% off Friday’s six-month high. Stock markets meantime edged lower, while US Treasury bonds gained. Industrial commodities were little changed, following Monday’s sudden drop in oil […]

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Investors Still Buying Gold as Precious Metals Defend Gains

Wholesale market prices for Buying Gold dipped below $1770 per ounce Monday morning in London, but remained less than ten Dollars below their six-month high hit last Friday, the day after the US Federal Reserve announced a third round of quantitative easing. Prices for Buying Silver fell to around $34.50 an ounce this morning – 1.3% off Friday’s high – as stocks and industrial commodities also edged lower and major government bond prices rose. “Precious metals are for the most part defending the gains they have made in recent days,” says Commerzbank in its morning commodities note. “Gold is still pretty bullish this week,” agrees Phillip Futures analyst Lynette Tan in Singapore. “I think Gold […]

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Perma-QE: Lessons from Bernanke’s Latest Splurge

After months of “quanticipation“, the Federal Reserve has finally done it. Ben Bernanke yesterday announced another round of asset purchases. The much-vaunted third round of quantitative easing (QE3) is now a reality. And this time it’s permanent (or, at least, open-ended). First, let’s get the details out of the way: The Fed will buy $40 billion of mortgage-backed securities per month. This policy will continue indefinitely, depending on the state of the economy. The Fed will continue Operation Twist, aimed at lowering longer-term Treasury yields, until the end of the year, while also continue its policy of rolling over maturing mortgage-backed securities. As a result, Fed asset purchases will total […]

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Well I Didn’t See THAT Coming

| September 12, 2012 | Articles: Insights
Well I Didn’t See THAT Coming

Why didn’t anyone see it coming? asks Adrian Ash at BullionVault. That was the Queen’s famous question, 14 months into this now 5-year old crisis, when she visited the London School of Economics. Well, replied Professor Luis Garicano, showing Her Majesty the LSE’s new £71 million ($140m) faculty building in November 2008, “At every stage, someone was relying on somebody else and everyone thought they were doing the right thing.” Hnh? The British press guffawed and harrumphed at this lame excuse for an answer. But given a few days – and then a few months, and then a few years – the economics profession got its full reply down pat. “The simple response […]

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Gold Price Should Benefit from Central Bank Floodgates

The Dollar Gold Price hit a new six-month high at $1746 per ounce Wednesday morning, while stocks and the Euro also rallied after a ruling by Germany’s Constitutional Court cleared the way for the creation of a permanent Eurozone bailout fund. “The price action remains bullish with support at $1700 and an upside target of $1790,” says the latest technical analysis from bullion bank Scotia Mocatta. The Silver Price meantime traded as high as $34.16 an ounce – also a six-month high – while other commodities were broadly flat. Ahead of tomorrow’s Federal Reserve decision, analysts continue to speculate on whether the Fed will announce more quantitative easing (QE), with one suggesting the Fed […]

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Fed QE Expectations Keep Gold Prices Near Highs with Investors Growing Enthusiastic for Precious Metals

Gold Prices hovered around $1730 per ounce Tuesday morning in London, broadly in line with where they started the week, while stock markets ticked lower and longer-dated US Treasuries dipped, with traders and investors looking ahead to this week’s Federal Open Market Committee meeting, which begins tomorrow and concludes Thursday. Silver Prices traded between $33.60 and $33.70 per ounce for most of this morning, near to last week’s close, with other commodities also flat on the day. “Expectations that the Federal Reserve will start fresh quantitative easing [QE] measures at this week’s FOMC meeting [have] played a large role in keeping Gold Prices in close proximity to their recent highs,” says a note from […]

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Fed Easing Will be Catalyst for Gold Price

Fed Easing Will be Catalyst for Gold Price

The Gold Price drifted lower to $1730 per ounce Monday morning in London, ten Dollars below Friday’s six-month high, while stock markets were broadly flat and US Treasuries fell, amid speculation that the Federal Open Market Committee could announce further stimulus measures later this week. The Silver Price  fell below $33.50 per ounce – around 20 cents below last week’s close – while other commodities were broadly flat, with the exception of copper, which posted gains. Friday’s trading saw the Dollar Gold Price hit its highest level since February, after a disappointing US nonfarm payrolls report led to renewed speculation the Federal Reserve could announce a third round of quantitative easing (QE3) when it makes […]

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Why Don’t Germans Believe the ECB’s Supra Mario?

| September 7, 2012 | Articles: Insights
Why Don’t Germans Believe the ECB’s Supra Mario?

So for at least the second time in four months, today’s Handelsblatt newspaper in Germany carries a big picture of Edvard Munch’s The Scream, writes Adrian Ash at BullionVault. This time, the picture doesn’t replace the painter’s tortured self-portrait with chancellor Angela Merkel’s head. The headline is now “Angst of the Germans“. But the subject is the same. “Nothing frightens the German people so much as the Euro debt crisis,” says the newspaper. The most over-insured people in the world, Germany naturally shares its fears in a survey conducted for an insurance company’s PR department – and at 73%, fear of the Eurozone crisis now tops even its reading 12 months ago, when the crisis tipped […]

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