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
Gold & Silver Prices in

Euro Fudge Distracts From Global Debt Titanic; Intervention in Gold Market?

IMG Auteur
Published : December 09th, 2011
914 words - Reading time : 2 - 3 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

Gold is trading at USD 1,719.00, EUR 1,283.70, GBP 1,095.30, CHF 1,582.40, JPY 135,510 and AUD 1,689.0 per ounce.


Gold’s London AM fix this morning was USD 1,712.00, GBP 1,094.49, and EUR 1,281.34 per ounce.


Yesterday's AM fix was USD 1,739.00, GBP 1,105.81, and EUR 1,297.28 per ounce.



Cross Currency Table


Gold edged higher in euros, pounds, dollars and all currencies today after the European Union leaders failed overnight to get all of the bloc's 27 members to agree a change in the EU treaty allowing fiscal integration as the ‘decisive’ summit in Brussels ended its first day in the early hours Friday.


Gold traded higher after the ECB interest rate cut yesterday, prior to sharp selling that came into the market at 1335 GMT. This led to gold falling 2% on the day and it is now down 1.3% on the week – again outperforming many equity indices.


Market News International (MNI) reported that market sources said that the Bank for International Settlements, the Bank of England and the Federal Reserve have been “good sellers of gold” after it had popped to a fresh session high of $1,755.90/oz. 




The MNI report has not been explored and there have not been any official denials of official selling.


From a trading perspective there is at least a ring of truth to the MNI report as the sharp fall in the gold price was counterintuitive given there was no negative gold news and indeed the news was bullish with significant risk ahead of the EU summit and continued ultra loose monetary policies and negative real interest rates.


Given the scale of the coordinated intervention in markets by central banks recently one would have to be completely naïve to dismiss the report out of hand. There is of course the historical precedent of the London Gold Pool which ended in failure.


However, before jumping to conclusions it would be good if the MNI report was looked at and some questions asked - in the finest traditions of journalism.




Markets reaction to the euro summit fudge was not as bad as some of the ‘end of the world in 9 days if no agreement’ theorists who fear mongered in recent days. Many of the ‘9 day’ doom merchants had banking and political interests and agendas. 


European indices are tentatively higher despite losses in Asia.


At the end of the day, agreement or no agreement the fundamental challenge facing Europe and the developed world is humungous levels of debt in the banking sector and in the shadow banking system (derivatives with a value in the hundreds of trillions) and real global financial system.


The root cause of the problem is this debt, as has been pointed out by many for months and years now. The problem cannot be solved by socializing the debt and piling public debt on top of this private banking debt.


As long as the official policy response is the printing and electronic creation of trillions of dollars, euros and pounds and ‘bazooka’ style currency debasement remains the monetary panacea du jour, there will be no real resolution of this crisis.


Therefore, fiat currencies will continue to be debased and fall in value versus gold. 


Myopic markets continue to have the attention span of a goldfish with the sole focus on the Eurozone crisis again in recent days while completely ignoring the global fiscal titanic as seen in the appalling finances of Japan, the UK and the US.


The iceberg approaches and we only see the tip of the iceberg.


The total net cost of the Federal Reserve’s bailout alone is now estimated at an incredible $29.616 trillion according to research from the Levy Economics Institute (see commentary).


The global debt crisis is not a short term phenomenon rather it is a medium and long term phenomenon that will challenge us for years. No magic wand solution from central bankers or politicians is possible.


One UK analyst made the witty comment this morning that the UK is “as isolated as someone left on the dock in Southampton as the Titanic sailed away.” 


Witty, however it ignores the fact that this crisis is very close to or already in the early stages of contagion and very close to another Lehman Brothers systemic ‘event’. The UK and the massive liabilities in the City of London are very much part of the global debt titanic.




These huge fiscal and monetary challenges remain the reason why the vast majority of investors and savers are being prudent in having a healthy allocation to gold for the foreseeable future. 


Gold will continue to reward and protect prudent investors and savers from negative real interest rates and global currency debasement.


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


SILVER 
Silver is trading at $31.83/oz, €23.84/oz and £20.33/oz 


PLATINUM GROUP METALS 
Platinum is trading at $1,487.75/oz, palladium at $666.00/oz and rhodium at $1,500/oz. 


NEWS
(Bloomberg)

Gold Analysts Most Bullish in Month on Debt Crisis


(RTT)
Gold Edges Up Amid Flat Dollar


(Reuters)
Gold steady as hopes fizzle on EU summit


(Reuters)
Britain isolated as Europe splits on fiscal union


COMMENTARY
(RitzHolz)
Bailout Total: $29.616 Trillion Dollars


(CNBC)
Video: GoldCore "Gold is Hedge Against Monetary & Systemic Risk"


(The Street.com)
Video - GoldCore Interview - Why Gold is Still a Safe Haven


(KWN)
Embry - $2,500 to $3,000 Gold Could Send Silver to $250


(Zero Hedge)
MNI Reports Coordinated Central Bank Intervention Sends Gold Lower Intraday


Mark O’Byrne

Goldcore

 

 

Companies Mentionned : Platinum Group Metals |
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
U.S.A. Caught in Enormous Policy...
03 MayCameron Waugh1
No comments because there is not much more that can be added to that. Short paper and long the PM's, thanks Jim.
JP Morgan Cornering Silver Bulli...
01 Mayovertheedge
Good article. There is one other conspiratorial reason why JPM might be accumulating major tonnage of silver. Throughout history, silver ha...
10 year Price vs Sentiment Map f...
01 Mayuser4779
Thanks, Bron, for this nice chart---more informative than just a plain old scatter plot. A 5-star article.
Picking Undervalued Gold Equitie...
29 Aprcapitalstars
MCX Commodity Gold Silver Tips is the most favourite service for all of traders but so much risk is involved in bullion trading. In this people can...
It’s Over: This Is the ONLY Pict...
29 Apruser4779
Two questions arise about photo of the fruit seller: when? and where? The laptop or notebook computer puts it probably in the last 5 years. That, ...
Inflation Inferno I
29 AprSilverthumb
Great article. I hope many people get a chance to read it. I'm going to read it for a second time right now. My thanks to the author>
Deconstructing and Debunking Sha...
29 AprDoom
I was under the impression that the inflation stats on his site were, as he explained them: one set is "official government inflation", and the oth...
Martin Armstrong – Gold Bullion ...
22 Aprbaregil
This Armstrong individual suffers from hyperinflation of the Ego. He speaks in a cryptic, sybilline and esoteric fashion, trying to make an impress...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Corsa Capital Ltd.(Au)CSO.V
Coal Announces Financial Results for Fourth Quarter 2014 and Fiscal 2014
CA$ 0.13-7.14%Trend Power :
Financials
Atna Resources(Ag-Au-Cu)ATN.TO
. Reports First Quarter 2015 Results
CA$ 0.10-4.76%Trend Power :
Financials
Atna Resources(Ag-Au-Cu)ATN.TO
. Reports First Quarter 2015 Results
CA$ 0.10-4.76%Trend Power :
Financials
Ram Power(Cu-Mo-Au)RPG.TO
Announces Closing of Private Placement
CA$ 0.00+0.00%Trend Power :
Financings
True North Gems(Gems-Ni)TGX.V
True North Gems Provides Mine Construction Update
CA$ 0.16+3.13%Trend Power :
Corporate news
Caledonia Mining(Cu-Ni-Co)CAL.TO
Caledonia Mining Corporation: Major Shareholder Notification
CA$ 0.75+0.00%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Goldcorp's lower profit lags estimates, stock slumps
CA$ 22.73+0.09%Trend Power :
Corporate news
Silver Wheaton(Cu-Le-Zn)SLW.TO
Trade sees floor in Silver Wheaton
CA$ 24.52+3.03%Trend Power :
Corporate news
Fortuna Silver(Ag-Au-Zn)FVI.TO
Fortuna to release first quarter financial results on May 8, 2015; Conference call at 12 p.m. Eastern on May 11, 2015
CA$ 4.56-0.22%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
CANADA STOCKS-Quarterly results, resources lead broad TSX rout
CA$ 22.73+0.09%Trend Power :
Discoveries and Drilling Results
Comments closed