Global Market Paralysis Sees Gold Holding Onto Gains

Gold is trading at USD 1,653.45, EUR 1,210.52, GBP 1,055.44, JPY 126,298.80, AUD 1,665.32 and CHF 1,477.66 per ounce. 

Gold’s London AM fix this morning was USD 1,655.00, EUR 1,214.77,and GBP 1,059.37 per ounce. 

Yesterday’s AM fix was USD 1,671.00, EUR 1,236.40, and GBP 1,075.50 per ounce. 

Global market sentiment is mixed; all eyes are focused on Europe and its ability to forge a resolution to an expected Greek default.  Finance ministers are wrestling with the depth of commitment needed to shore up the Euro and the mechanisms needed to manage such a fund.  There is as of yet no consensus and thus we see choppy markets nervously digesting sound bites from the many voices of modern European monetary policy. 


European Commission President Jose Manuel Barroso – Reuters 

Barroso State of the (Dis)Union Address

The biggest sound bite of the day comes from the European Commission President Manuel Jose Barroso where in his annual State of the Union address stated that, "We need to complete our monetary union with an economic union. It was an illusion to think that we could have a common currency and a single market with national approaches to economic and budgetary policy."  Which was quite an admission from the heart of Europe.

Regarding The European Financial Stability Fund EU President Barroso Commented

"The EFSF must immediately be made both stronger and more flexible.  This is what the Commission proposed already in January. This is what heads of state and government of the Euro area agreed upon on July 21.  Only then will it be able to deploy precautionary intervention, intervene to support the recapitalization of banks, intervene in the secondary markets to help avoid contagion.  Once the EFSF is ratified, we should make the most efficient use of its financial envelope.  The Commission is working on options to this end.  Moreover we should do everything possible to accelerate the entry into force of the ESM (European Stability Mechanism). And we trust that the European Central Bank, in full respect of the Treaty, will do whatever is necessary to ensure the integrity of the euro area and to ensure its financial stability."

He also took the time to cast a stone or two at the U.S. by saying he was "aggrieved when I see people patronising us and telling us what to do. No one tells Europe what to do."  His comment was echoed by Germany’s Finance Minister, Mr. Schauble, when he commented on the deployment of leverage to the EFSF €440 billion fund to bring the total fund fire power to circa €2 trillion as being "stupid", specifically he stated "I don’t understand how anyone in the European Commission can have such a stupid idea. The result would be to endanger the AAA sovereign debt ratings of other member states. It makes no sense,…..It’s always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the U.S. government."

Are they Playing Chicken?

Such comments merely add to market tension as it indicates that on the surface at least the Eurozone leaders and the U.S. administration are not seeing eye to eye.  It also stands in contrast to the U.S. Federal Reserve to act as lender as last resort to European Financial Institutions.  It may transpire that the U.S. comments and the retort are designed to bolster public opinion in donor countries to support a grand plan, when it is unveiled.

What Does This Mean for Gold?

Bargain hunters quickly filled the void left by the speculative hoards Tuesday and bid up gold more than 7%, today the markets are somewhat out of breath and are clearly waiting to gauge the next momentum shift. We are neutral on gold’s near term value.

For our latest news and commentary follow us on Twitter.

SILVER 
Silver is trading at $30.96/oz, €22.69/oz and £19.78/oz 

PLATINUM GROUP METALS 
Platinum is trading at $1,550.50/oz, palladium at $647/oz and rhodium at $1,575/oz. 

NEWS
 (Bloomberg)
Barroso Calls for Faster Start-Up of Permanent Euro Bailout Fund

(The Econmic Times)
European Commission President Jose Barroso calls on ECB to do everything for financial stability in euro zone

(Zero Hedge)
FT Report That Greek Bailout Package On The Verge Of Collapse After Surge In Greek Funding Needs Sends Stocks, Euro Plunging From Highs

 

  

 

 

 

 

Mark O'Byrne

Also on news-goldcore-com

Videos

Uranium Squeeze AND the Case for Gold – Amir Adnani

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Blog posts

Uranium Squeeze AND the Case for Gold – Amir Adnani

Dave Russell, our host today, welcomes Amir Adnani, CEO of GoldMining Inc. He joins us to talk about the supply-side factors affecting the gold prices, The Case for Gold, and the Uranium Squeeze, as well as why he is bullish on both yellow metals. Watch the full interview to find out more. Watch the Video […]

READ MORE

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Uranium Squeeze AND the Case for Gold – Amir Adnani

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Blog posts

Uranium Squeeze AND the Case for Gold – Amir Adnani

Dave Russell, our host today, welcomes Amir Adnani, CEO of GoldMining Inc. He joins us to talk about the supply-side factors affecting the gold prices, The Case for Gold, and the Uranium Squeeze, as well as why he is bullish on both yellow metals. Watch the full interview to find out more. Watch the Video […]

READ MORE

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE