Sterling At Risk Of “Large-Scale Devaluation” As Currency Wars Intensify

Today’s AM fix was USD 1,613.50, EUR 1,208.80 and GBP 1,041.57 per ounce.
Yesterday’s AM fix was USD 1,611.25, EUR 1,206.39 and GBP 1,041.53 per ounce.

Silver is trading at $30.13/oz, €22.68/oz and £19.56/oz. Platinum is trading at $1,700.25/oz, palladium at $765.00/oz and rhodium at $1,245/oz.

Gold slipped 0.1 percent to $1,607.06/oz on Monday after falling as low as $1,598.04/oz on Friday, its weakest since August.


Cross Currency Table – (Bloomberg)

Gold inched up Tuesday morning, however the dollar’s rise to a one month high limited bullion’s gains.

European markets are cautious ahead of Italy’s elections on Feb. 24-25th, including candidate and former Prime Minister, Silvio Berlusconi. Mario Draghi urged finance chiefs from the G20 to be “prudent” when talking about currency movements.

The Bank of Japan’s minutes to their policy meeting noted that the government’s asset purchasing plan could continue for 5 years.

The U.S. Federal Reserve’s policy minutes are available tomorrow, and will be closely scrutinized.

India’s duties on gold imports may increase in an effort to decrease the country’s account deficit said an employee from the largest state run gold importer.

More violence in South Africa as 4 security guards were disfigured with machetes and at least 13 people were injured, in a labour fight at Anglo American Platinum.

Iran said it will not close the Fordow nuclear plant yesterday. Ramin Mehmanparast, spokesman for Iran’s foreign ministry, commented that the reported offer was unacceptable. However, they are ready for logical negotiations, he noted.


Currency Ranked Returns in Great British Pounds – (Bloomberg)

The pound took a fresh beating yesterday as concerns of currency wars and debasement of sterling led to another sell-off and experts said the currency was at risk of a "large-scale devaluation".

Sterling trails only Japan’s yen as the worst performer against a basket of international currencies this year as a 4.5 per cent decline fuels import prices and pushes up the cost of food, insurance and other necessities for hundreds of thousands of households. 

As central banks tolerate higher levels of inflation, the pound is set to weaken further across the board particularly against safe haven gold.

UBS warned that the pound seems clearly at risk of following the yen and "suffering the next large-scale devaluation."

Dealers also noted weekend comments from Bank of England rate-setter Martin Weale, who warned the pound was still too high to help the UK economy rebalance effectively. The continued pressure on the currency comes after its biggest weekly loss since June last year amid gloom over weak growth prospects. 

The Bank of England has signalled it is willing to tolerate higher inflation for longer, while the pound’s safe-haven appeal has also waned as the European Central Bank makes explicit commitments to prop up Eurozone strugglers and preserve the single currency.


XAU/GBP Daily, FEB2108-19FEB13– (Bloomberg)

The yen also fell as the G20’s finance ministers in Moscow shied away from criticism of Japan for weakening its currency. Prime Minister Shinzo Abe has repeatedly called for a cheaper currency in order to help the country’s exporters compete.

GoldCore Webinar – How to Protect and Grow Your Wealth
Join us for a webinar this Wednesday 20th February at 1pm with guest presenter Eddie Hobbs. Eddie will provide valuable insight into the outlook for the US and the global economies. He will also outline why he believes that gold, and now also silver, are important from a diversification point of view for Irish people who wish to both protect and grow their wealth in the coming years.

Join Eddie in this 45 minute webinar as he untangles the complexity of the global economy and how it will affect you, and presents his findings in a no-nonsense and easy-to-understand manner.

Click here to register.

NEWS  
Gold inches up but stronger dollar caps gains – Reuters

Gold Advances as Price Drop Seen Boosting Demand; Silver Gains – Bloomberg

Audit confirms U.S. gold safe at New York Fed – Los Angeles Times

Iran scolds world powers over gold sanctions "offer" – Ahram Online

France accused of cover-up over Tunisian dictator’s gold – The Times

COMMENTARY
Sterling is battered once again amid warnings of a large-scale devaluation – The Independent

They’ve Been Saying Gold Bull Market Is Over For 12 years – King World News

Get Ready for Some Major Disinformation about America’s Gold – Economic Policy Journal

Jim Rickards: Currency War 3 Has Just Begun – Financial Sense

Global currency wars: Owning gold is like abandoning the battlefield – Zero Hedge

For breaking news and commentary on financial markets and gold, follow us on Twitter.


 

 

paulaflood

Also on news-goldcore-com

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

SEC Action Shows Why Cryptos Are Not “As Good As Gold”

The bitcoin versus gold debate has gone on for over a decade now. In that time regulators have been scratching their heads wondering how far they can let the cryptocurrency machine run for. “This far,” seems to be the decision this week. Meanwhile gold and silver carry on, continuing to offer a simple and unassuming […]

READ MORE

Global Debt Crisis: Pretend and Extend?

Those who have chosen to invest in gold bars or to buy silver coins have often done so because they fear the mismanagement of the monetary system. This week has offered further reassurance that investors are right to want to own gold in a balanced portfolio because yet another fight about the US debt ceiling […]

READ MORE

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

SEC Action Shows Why Cryptos Are Not “As Good As Gold”

The bitcoin versus gold debate has gone on for over a decade now. In that time regulators have been scratching their heads wondering how far they can let the cryptocurrency machine run for. “This far,” seems to be the decision this week. Meanwhile gold and silver carry on, continuing to offer a simple and unassuming […]

READ MORE

Global Debt Crisis: Pretend and Extend?

Those who have chosen to invest in gold bars or to buy silver coins have often done so because they fear the mismanagement of the monetary system. This week has offered further reassurance that investors are right to want to own gold in a balanced portfolio because yet another fight about the US debt ceiling […]

READ MORE

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE