Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Almost 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 1 18 2019
By: Ira Epstein

David Morgan: Expect Stagflation and Silver Outperformance in 2019
By: Mike Gleason

Gold, Silver, Miners—Get Ready to BTFD
By: David Brady, CFA

Gold Surges on Stock Selloff
By: Adam Hamilton, CPA

GoldSeek Radio Nugget: Ryan Walsh and Chris Waltzek

GoldSeek Radio Nugget: Michael Pento and Chris Waltzek

SPX and Gold; Pivotal Points at Hand
By: Gary Tanashian

Gold Is Up Lately. Why Does It Feel So Disappointing?
By: John Rubino

U.S. Government Debt Bomb Much Higher Than Americans Realize
By: Steve St. Angelo


GoldSeek Web

Russian Economic Power Driving Wedge Between Indebted Western Governments

 -- Published: Tuesday, 13 May 2014 | Print  | Disqus 

Today’s AM fix was USD 1,292.75, EUR 939.91 and GBP 766.67 per ounce.
Yesterday’s AM fix was USD 1,292.75, EUR 938.95 and GBP 765.08 per ounce.

Gold climbed $8.00 or 0.62% yesterday to $1,296.70/oz. Silver surged $0.40 or 2.09% to $19.55/oz.

Spot Gold Price in U.S. Dollars, Daily Candle - 2014 YTD (Thomson Reuters)

Gold fell marginally today despite escalating tension in Ukraine and between the U.S., EU and Russia. Dollar gains were cited for the fall.

The government in Kiev has been given a deadline to pay for Russian gas to prevent a supply cut off.

The U.S. is holding a massive nuclear weapons exercise this week from yesterday May 12 to Friday May 16. It is being held in coordination with other combatant commands, services, and appropriate U.S. government agencies, "to deter and detect strategic attacks," days after a similar Russian drill.

Eastern Ukraine states voted in a plebiscite to join Russia but the referendums have been disputed.

Bullion for immediate delivery declined 0.4% to $1,290.44 an ounce, Singapore gold traded at $1,292.03 by 2:40 p.m., according to Bloomberg and their generic pricing. Silver for immediate delivery declined 0.6% to $19.426 an ounce after yesterday’s gain. Platinum lost 0.1% to $1,435.75/oz, while palladium slid 0.1% but remained over $800/oz at $805.61/oz.

Spot Gold Price in U.S. Dollars, Monthly Candle - 8 Years (Thomson Reuters)

The dollar climbed to the highest in a week versus the yen and traded near the strongest in a month against the euro. Data today is forecast to show U.S. retail sales rose for a third month. A worse than expected sales number should see gold make gains and a better than expected number may see gold fall.

Gold has rallied 7.5% this year, partly due to safe haven demand as tensions rise between Russia and the West.

Russian Economic Power Driving Wedge Between Indebted Western Governments
Officials in the U.S. and European Union are having second thoughts about punishing Russia with sanctions targeting entire industries and the Russian economy, opting instead to focus on tightening pressure by targeting more individuals and companies.

Policy makers say they are concerned that broad-brush sanctions on Russia’s energy and financial sectors, the two areas mentioned as possible targets, risk provoking economically costly retaliation by Russia according to Bloomberg.

Gazprom, Russia’s massive gas-export monopoly, yesterday threatened to cut off supplies to Ukraine, a reminder of the power Russia wields over energy supplies to the rest of Europe.

A gas cutoff by Russia would wipe out half of Ukraine’s supply and could severely disrupt supplies to the EU. The EU, Turkey, Norway, Switzerland and the Balkan countries received 30% of the natural gas they burned from Russia last year, according to the U.S. Energy Department.

“We have to be very careful not to hurt ourselves more than we hurt the other side,” Polish Foreign Minister Radoslaw Sikorski said yesterday in a speech in Brussels, echoing comments made by U.S. Treasury Secretary Jacob J. Lew last week.

In a sign of Russia’s ability to use its economic power to drive a wedge between its former G20 allies, France’s government said this week it will deliver Mistral helicopter carrier warships to Russia as planned, thus rejecting requests from its European and U.S. allies to cancel the sale.

There are also significant dependencies on Russian grain exports, particularly in the EU.

It looks like the pragmatists and non ideologues may be gaining the upper hand over the more hawkish western voices who were risking conflict with Russia, potentially militarily.

Russia is powerful both in terms of natural resources and in terms of finances given their very significant foreign exchange reserves. Ukraine is bankrupt and on the verge of hyperinflation as we pointed out here. Ukraine desperately needs some $20 billion to avoid financial collapse.

With Western nations heavily indebted including the hugely indebted U.S., Russia looks like the only realistic source of such funds.

Geopolitical risk remains very much underestimated and there remains the risk of financial, economic and currency wars where the Russians use gold as a geopolitical weapon to undermine the dollar.

7 Key Bullion Storage Must Haves

| Digg This Article
 -- Published: Tuesday, 13 May 2014 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of 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 This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC 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, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.