A Greek Tragedy that Is the Euro, Bad Actors, Bad Lines and More Lies, Gold Watches on
The risk trade is on again, gold holds steady and may even be about to falter. The European Union’s Financial Cavalry have saved the world from the evil Greek mobs by lending more money yet again. ……… Don’t believe a word of it!
The Greek crisis is endemic of a system in deep crisis. The European project is ill-equipped politically or financially to manage the creeping doubt that has slowly and inevitably eroded investor confidence the world over. The gnarling mob may have been beaten back this time, but when the full effects of further austerity measures are thrust upon them, what then?
Let us hope that a sense of unity will prevail and the European political elite show some of the foresight of their predecessors and actually take some real risks to address the actual causes of the crisis instead of papering over the cracks with half measures. Eventually it will come down to a question of priorities; can Greece or any other victim of the credit bubble; repair their damaged economies, create growth and pay back debts owed?
Gold is trading slightly lower at $1,508.80/oz, €1,041.41/oz and £942.18/oz.
50-day moving average for gold is $1,521/oz – we see support at the 1,500/oz mark, good upside thereafter.
Silver is trading slightly lower $34.78/oz, €24.01/oz and £21.71/oz.
50-day moving average for silver is $37.64/oz – we see support at the 33.80/oz mark.
PLATINUM GROUP METALS
Platinum is trading at $1,718.50/oz, palladium at $756/oz and rhodium at $1,925/oz.
From the GoldCore Trading Desk: strong demand for 1 kg gold bars, wealth preservation being the primary motivator. Value hunters looking to time an entry, biding their time for now. Buyers outrank sellers 3 : 1. Premiums compressing.
Mark is travelling on business, this market update has been authored by Stephen Flood.