Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main 
  
 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Remarkable Value in Junior Miners & Oil Stocks - Frank Holmes Interview
By: GoldSeek.com TV

Asian Metals Market Update
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver End Slightly Lower Again
By: Chris Mullen, Gold-Seeker.com

New Ask the Expert with Eric Sprott: "COMEX Data is Corrupted"
By: Sprott Money News

Rick Rule: This Gold Sell-off is a Normal Event in this Market
By: Henry Bonner

Gold: Let The Good Times Roll?
By: Stewart Thomson

Death of the Dollar? Gold is an Inflation Hedge? Really?
By: Gary Tanashian

We’re Ready to Profit in the Coming Correction—Are You?
By: Laurynas Vegys, Research Analyst

Silver Prices – Megaphone Patterns
By: GE Christenson

Fed Exit a Blue Pill?
By: Axel Merk

 
Search

GoldSeek Web

 
Gold Will Advance to $2,500 If Euro Zone Breaks Up - Capital Economics



-- Posted Thursday, 9 February 2012 | | Disqus

Gold’s London AM fix this morning was USD 1,733.00, EUR 1,304.77, and GBP 1,094.20 per ounce. Yesterday's AM fix was USD 1,743.00, EUR 1,315.17, and GBP 1,095.95 per ounce.

Cross Currency Table – Bloomberg

Gold tested yesterday's lows near $1,725/oz in early trading in Asia prior to ticking higher to $1,740 towards the end of the trading day with surprisingly strong inflation figures from China helping.

Gold corrected to $1,730/oz as markets in Europe opened and has traded in a range between $1,730/oz and $1,740/oz since.

It is believed that Greek political leaders are still holding out with regard to pension cuts.  Market participants are again looking for some closure today.  Failure could lead to a sharp bout of risk aversion.

A resolution will boost the euro against the dollar and gold short term but with Greece remaining fundamentally insolvent the latest exercise in ‘kicking the eurozone can down the road’ will not restore confidence in the euro in the long term.

Gold Spot $/oz 3 Days  (Bloomberg)

The European central bank has a rate decision out today at 12.45 GMT and interest rates are expected to remain at record lows, near 0%, supporting gold.

Bank of England Governor Mervyn King looks set to engage in more QE by injecting another  50 billion pounds, nearly $80 billion, into the U.K. economy today as he ramps up protection for a nascent recovery from the threat posed by Europe’s debt crisis.

More QE by the BOE and loose monetary policy by the ECB is gold bullish.

China's annual inflation rate (CPI Index) accelerated to 4.5% in January, surprising market expectations and breaking a five-month trend of easing price pressures.  Consumers hitting the shops hard spending during the Chinese Lunar New Year holiday break may have contributed to the inflation.

The inflation jump in the world’s second-largest bullion consumer, China, should lead to continuing demand for bullion there.

 “Gold will rise to $2,500/oz and commodities will plummet if the euro area starts to break up, “said Capital Economics yesterday.

“Greece may leave the system this year, followed by Portugal and Ireland in 2013, "Julian Jessop, chief global economist at the macroeconomic consultancy, told a conference in London on Wednesday.

 A drop in commodity prices could be "pretty bad" if the Eurozone breaks up, while smaller than the 2008 collapse.

Gold and silver will rise, he said. "It's almost certainly bad for all commodities, excluding gold and perhaps silver as a safe haven," Jessop said.

European Central Bank governing council member Ewald Nowotny said last month he "can't be sure" Greece will be able to stay in the single currency, while some economists including Nouriel Roubini have said that the country may leave the euro within a year.

Greece, facing a 14.5 billion-euro ($19.2 billion) bond payment on March 20, is struggling to arrange financing to avert a collapse of the economy, risking a new round of contagion in the euro area.

In the longer term, the breakup of the euro could be "very positive" for the global economy and commodity prices, Jessop said, as peripheral countries and Germany would have greater freedom to set their economic policies.

OTHER NEWS
(Bloomberg) -- South African Gold Output Fell 8.2% in December From Year Ago
 South African gold production fell 8.2 percent in December from a year earlier, Statistics South Africa, said by phone from Pretoria today.

(Bloomberg) -- South Africa Mine Output Rose 0.9% in December From Year Earlier
 South African mine production rose 0.9 percent in December from a year earlier, Statistics South Africa, said by phone from Pretoria today.

NEWS
(Reuters) -- PRECIOUS-Gold edges up on Greek hopes, China inflation

http://www.reuters.com/article/2012/02/09/markets-precious-idUSL4E8D90FI20120209

(WallStreetJournal) --  METALS: Gold Choppy In Asia; Range Trade Seen Ahead Of Greek Deal
http://online.wsj.com/article/BT-CO-20120209-700384.html

(Bloomberg) -- Greece Talks Stall as Venizelos Heads to Brussels
http://www.bloomberg.com/news/2012-02-08/greek-bailout-talks-stall-on-pension-dispute-talks-to-resume-imminently.html

(Bloomberg) -- U.S. Faces Downgrade If No Plan: Chambers
http://www.bloomberg.com/news/2012-02-08/u-s-faces-downgrade-if-no-plan-chambers.html

(MarketWatch) -- Bank of England expected to expand QE program
http://www.marketwatch.com/story/bank-of-england-expected-to-expand-qe-program-2012-02-08?link=MW_latest_news

COMMENTARY
(Credit Suisse) -- Credit Suisse: Global Returns Handbook 2012

https://www.credit-suisse.com/investment_banking/doc/cs_global_investment_returns_yearbook.pdf

(Max Keiser) -- Keiser Report: It’s All Legal, Folks
http://maxkeiser.com/2012/02/07/kr246-keiser-report-its-all-legal-folks/

(Wall Street Journal) -- Valentine's Day Gold Rush Is Still Within Reach
http://online.wsj.com/article/SB10001424052970204369404577210990561118380.html

(Bloomberg) -- Gold, Thermal Coal Favored Over Copper by UBS
http://www.bloomberg.com/video/85937364

(GoldSeek) -- Why Our Currency Will Fail
http://news.goldseek.com/GoldSeek/1328716638.php

(Forbes) -- No Volcker To Squash Gold Bugs This Time Around
http://www.forbes.com/sites/greatspeculations/2012/02/08/no-volcker-to-squash-gold-bugs-this-time-around/

(ZeroHedge) -- Michael Pento On Gold, Inflation, and Interest Rates
http://www.zerohedge.com/contributed/michael-pento-gold-inflation-and-interest-rates

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

GoldCore

United Kingdom:
No. 1 Cornhill
EC3V 3ND
UK

Ireland:
14 Fitzwilliam Square
Dublin 2

IRL +353 (0)1 632 5010
UK 
+44 (0)203 086 9200
US 
+1 (302)635 1160


mark.obyrne@goldcore.com
www.goldcore.com


Twitter, Facebook, YouTube, LinkedIn:
www.twitter.com/goldcore
www.facebook.com/GoldCore
www.youtube.com/GoldCoreLimited
http://www.linkedin.com/pub/mark-o-byrne/5/5a3/b43


-- Posted Thursday, 9 February 2012 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2014


© GoldSeek.com, Gold Seek LLC


GoldSeek.com Supports Kiva.org

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.
OilSeek.com