Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Price Of Gold Remains Flat, Greek Debt Restructuring "Not An Option"

IMG Auteur
 
Published : June 01st, 2011
626 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

London Gold Market Report

 

THE WHOLESALE price to buy gold continued trading in a tight range Tuesday morning around $1538 per ounce – just over 2% off its all-time high – following a flat day Monday as the US and UK had official holidays.

 

Stock and commodity markets meantime rose sharply – while US Treasury bonds fell – after news of a possible Eurozone agreement on a new financial aid package for Greece.

 

Silver prices gained 1.7% before settling into a range just below $39 per ounce, still 20% of the peak seen at the start of the month.

 

"Although there seems to be sporadic scrap-selling of gold, physical market buying interest has been strong so far this week, and we expect this trend to remain in place," says Walter de Wet, precious metals strategist at Standard Bank.

 

Asian precious metals trade saw a "quiet market" on Tuesday, according to one Hong Kong-based bullion dealer.

 

"It's a very quiet start," agreed a Singapore dealer, speaking to Reuters. "But we saw two-way business [on Monday]. Thailand and Indonesia were sellers [of gold], while the Indians were the buyers. We also saw speculators buying silver." 

 

The Euro price to buy gold hit a one-week low of €34,261 per kilogram (€1066 per ounce) on Tuesday morning, as the single currency continued the climb away from $1.40 started last Wednesday, reaching $1.44 by lunchtime in London. 

 

"The total restructuring of the Greek debt is not an option and isn't envisaged by anyone," Jean-Claude Juncker, chairman of the Eurozone finance ministers, told reporters in Paris on Monday.

 

"There is no difference between soft restructuring and restructuring," ECB executive board member Lorenzo Bini Smaghi told the Financial Times in an interview on Friday. "There is no such thing as an 'orderly' debt restructuring in current circumstances."

 

In Athens the Greek press reported Tuesday morning that the country's government has agreed a deal with its troika of creditors – the ECB, the International Monetary Fund and the EU – to borrow a further €60 billion to enable it to service its debt through 2012.

 

"Given the current state of political and economic affairs in Europe, is there any reason to believe that at the margin – and perhaps at the very center – money shall do anything other than to leave the Euro and to gravitate toward gold?" asked renowned investor Dennis Gartman on Monday.

 

Gartman last week described gold as the "trump card" currency.

 

The troika last year agreed to lend Greece €110 billion. Juncker warned last week that the IMF may have to withhold its portion of the next tranche of the bailout – due before July and worth a total of €12 billion – due to IMF rules which prevent loans to governments that cannot guarantee their solvency for at least 12 months.

 

Financial Times Deutschland reported on Tuesday that Germany, the Netherlands and other countries were still pushing for restructuring, asking private creditors to extend maturities on Greek debt.

 

However, a Wall Street Journal story claimed that Germany had dropped restructuring as a condition of any new loans to Greece.

 

"These are just temporary solutions," says Andrew Pease, senior investment strategist Asia Pacific at Russell Investment Group. "Talk of additional aid for Greece has given investors some relief for now...[but] that's not a sustainable solution."

 

"The European problem is way beyond Greece," adds BlackRock chief executive Larry Fink, speaking to Bloomberg Television on Tuesday.

 

Away from Greece, the ECB on Friday raised the amount by which it discounts the face value – otherwise known as the 'haircut' – on Portuguese bonds offered as collateral, from 5.5% to 10.5%.



 


Ben Traynor




 


You can receive your first gram of Gold free by opening an account with Bullion Vault : Click here.


 


   

 

 



Companies Mentionned : Metals X |
Data and Statistics for these countries : Greece | Hong Kong | Indonesia | Netherlands | Singapore | Thailand | All
Gold and Silver Prices for these countries : Greece | Hong Kong | Indonesia | Netherlands | Singapore | Thailand | All
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
The London Gold Market Report is the daily market review from BullionVault, the world's largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world's $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context. Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Why we should abandon the State
28 Julovertheedge
What a gigantic pile of horse excrement. Cherry pick everything that has gone wrong. Completely discount the hard fact that the author and ...
Iran Agreement Boosts Peace, Def...
26 Julkeith95
How about the US invading Afghanistan in 2001, Iraq in 2003 ... leading to the current unrest in the middle east while supporting the 'Saudi's' ......
Take Possession of IRA Metals We...
24 Julericgolub
Internal Revenue Code 4975 language suggests that whether the gold is held directly by the IRA or by an IRA LLC (which is nonetheless still subject...
Gold Miners Nearing Rebound
24 Julsonora69
Silver has already made a 50 cent down and up round trip as of 3:30. This is happening on a Friday, with the stock markets failing to make an advan...
Why Pensions Are A (Big) Black Swan
25 JulS W.1
No (pensions) are not a black swan, which is totally random unforeseen event.
Iran Agreement Boosts Peace, Def...
23 Julsonora69-2
Doesn't anyone remember the Iran hostage crisis, when Iran held 52 American diplomats and citizens hostage for 444 days in 1979-1981. How about 198...
What Do Greece and Louisiana Hav...
23 Julovertheedge
"The US financial system isn’t any better. ... , Actual currency is just a little over $1.36 trillion. ..." And it is assumed that about h...
Why Are We Here?
23 Julovertheedge1
No "woe is me" here. Just another buying opportunity. Using leverage is not buying, it is borrowing. It ain't bought til it's paid off....
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Mawson Res.(Au-Ur)MAW.TO
Restarts Drilling at the Palokas Gold Prospect in Finland
CA$ 0.17+0.00%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Achieves Record Quarterly Gold Production; Updates 2015 Cost Guidance
CA$ 16.35-2.04%Trend Power :
Production
Claude Resources(Au-Cu-Ngas)CRJ.TO
Provides Date for Q2 Results and Conference Call
CA$ 0.59-1.67%Trend Power :
Corporate news
Richmond Min.(Ur-Au-Gems)RMD.V
- Exploration Update
CA$ 0.09+0.00%Trend Power :
Corporate news
Arianne Phosphate(Ur-Mo-Ti)DAN.V
Extends the Term of Warrants
CA$ 0.84+0.00%Trend Power :
Financings
Anaconda Min.(Au)ANX.TO
Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Over 4.97 Metres from Channel Sampl
CA$ 0.05+0.00%Trend Power :
Corporate news
Capstone Mining(Ag-Au-Cu)CS.TO
Second Quarter 2015 Financial Results
CA$ 0.92-3.16%Trend Power :
Financials
Taseko(Au-Cu-Mo)TKO.TO
and Soda Creek Indian Band Sign Participation and Cooperation Agreement
CA$ 0.66-1.49%Trend Power :
Corporate news
Tinka Resources(Ag)TK.V
commences 10,000 metre drill program at Ayawilca zinc project, announces new IP results & tar
CA$ 0.17+0.00%Trend Power :
Corporate news
Sandstorm Gold(Cu-Mo-Au)SSL.V
Files Early Warning Report
CA$ 3.08-3.75%Trend Power :
Corporate news
Comments closed