Gold and silver are lower today despite European equities falling for a sixth day on sovereign debt and economic growth concerns. Bernanke’s failure to even suggest that the Federal Reserve will embark on further stimulus and QE3, after QE1 and QE2 failed to kick start the US economy, has markets jittery.
Cross Currency Rates
Moody’s warned that the UK was at risk of losing its AAA rating if growth remained weak and the government failed to meet its budget deficit reduction targets. This is almost certain as the UK is now seeing a new bout of weakness in the housing market, and stagflation.
Gold in British Pounds – 30 Days (Tick)
Sterling fell against the euro, the dollar and most currencies but remained stronger against the New Zealand dollar and Australian dollar as the commodity currencies saw weakness.
Gold remains near record highs in sterling (£949.82/oz) and looks well both fundamentally (given the risks posed to the UK economy and sterling) and technically. Gold looks well supported above £900/oz and may be consolidating over £900/oz prior to a move to £1,000/oz.
Gold in British Pounds – 180 Days (Daily)
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(Wall Street Journal)
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