Gold Price +0.6% vs 'Gradual Rate Rise' Dollar as ECB Back-Tracks on QE, Sterling Gains Amid Brexit Wrangling

IMG Auteur
 
Published : July 13th, 2017
701 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...
Category : GoldWire
The GOLD PRICE in Dollars eased back but held 0.6% higher for the week so far against the Dollar on Thursday as world stock markets rose following Janet Yellen's comment to lawmakers that the US Federal Reserve will raise interest rates only "gradually".
The British Pound meantime rose but London's FTSE-100 share index held almost 2% below last month's new record highs as Westminster's minority Conservative Government published its "Great Repeal Bill" for ending European Union supremacy over UK law when Brexit formally happens in 20 months' time.
Trading at $1220 per ounce, gold prices touched 1-week highs versus the Euro at €1075 as the single currency fell after a voting member of the European Central Bank said its current policy of quantitative easing is unlikely to end before the Brexit deadline of 2019, reversing what many analysts had seen as a co-ordinated switch to 'hawkish' comments from ECB policymakers.
"Low inflation...means that [QE] program could continue for at least a couple of years," said Latvian central-bank chief Ilmāru Rimšēviču on radio in Riga.
US Fed chief Yellen yesterday told Congress in her semi-annual testimony that only "gradual rate hikes are likely to be appropriate over the next few years."
Beyond that, said Yellen, "the longer-run neutral level of the federal funds rate is likely to remain below levels that prevailed in previous decades."
Here in London meantime, the minority Conservative Government of Theresa May presented what it called " The Great Repeal Bill" to Parliament, proposing how current European Union laws should be assumed and continued by the UK on the day of Brexit in March 2019.
"The Great Repeal Bill is a completely absurd name" for the UK's post-Brexit law, according to former deputy prime minister Nick Clegg – who lost his seat in last month's General Election –because it is in fact "a duplication bill" giving continuity to existing EU legislation.
One clause, however, says that "The [EU] charter of fundamental rights is not part of domestic law on or after exit day" – a change already challenged by the Opposition Labour and Lib-Dem parties, who said they will vote against the Bill as it stands.
"I am not hearing any whistling, just a clock ticking," said the EU's chief Brexit negotiator Michel Barnier overnight, responding to UK foreign secretary Boris Johnson's claim that Brussels "can go whistle" for a large divorce payment from London.
The Office for Budget Responsibility claimed today that, if Brexit shrinks the UK economy's growth by just 0.1% per year over the next half-century, it risks growing the nation's public debt-to-GDP ratio by one half.
Shorter-term, ratings agency Moody's said late Wednesday that the UK's credit "could be downgraded" if it fails to negotiate continued access to the EU single market.
24hGold - Gold Price +0.6 vs '...
Without a new customs agreement in place by the March 2019 deadline for exit, said the UK's National Audit Office chief Sir Amyas Morse today, the country's flows of imports and exports face "a horror show" of officials having to manually process each consignment.
"In the case of an unorderly withdrawal," said a joint letter from 8 pharmaceutical trade associations on Thursday, "[it could] lead to potential supply disruptions of life-saving medicines" across Europe's "highly integrated" drugs market.
New data yesterday put the UK's jobless rate at its lowest since July 1975 at 4.5%, while average wage growth of 2.0% beat analyst forecasts but fell further behind inflation in the cost of living, last put at 2.9% per year. 
Latest data from chartered surveyors today said UK house-price growth has fallen to its weakest since immediately after June 2016's Brexit referendum result.
Sterling's rise on the FX market Thursday knocked the UK gold price in Pounds per ounce £10 below yesterday's 7-session highs of £952, erasing the week's earlier 1.2% rally from new 2017 lows.
Deputy Bank of England governor Ben Broadbent said in a speech this week he is "not ready" to vote for interest-rate hikes, calling it "a bit tricky at the moment."
Canadian gold prices meantime bounced 0.5% after touching new 6-month lows on Wednesday's widely-expected central-bank interest rate rise.
You can receive your first gram of Gold free by opening an account with Bullion Vault : Click here.
Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :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.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Another One Bites the Dust
03:31Doom
Shallow it may be, but it's frickin' hilarious to laugh at all the hypocritical jerks who gave Trump ("I'm no angel") endless grief for his "when y...
Brexit, Gold and Harold Wilson's 'Pound in Your Pocket', 50 Years On
20 NovThemis
Good points, however Brexit is not entirely about the value of the pound or the cost of living. Many of those who voted in favour of leaving the U...
Another One Bites the Dust
20 NovThe Recusant0
Seems rather shallow to fault Franken for a tasteless comedic prank after electing the "grab them by the p*ssy" adulterer to the presidency.
Another One Bites the Dust
18 Novdennyc1
I happened to read one of Franken's book about all of the hypocrites in office, business,etc. his sanctimonious air notwithstanding I thought the g...
Brexit, Gold and Harold Wilson's 'Pound in Your Pocket', 50 Years On
18 Novkevthorne
A well informed article, giving the insight into what Brexit will really mean for the UK.
What Now?
14 NovThemis
Kunstler has a talent for summarizing complex situations in a pithy and entertaining way. The Middle East is being reduced to a drawn out proxy wa...
Spanking the Monkey
14 Novprljr
They wonder why Russia Today has such a big following. Real news is much more interesting than the MSM circus. Especially when you question more.
Spanking the Monkey
12 NovGypsy
James, I've been wondering about the Hollywood Spank the Monkey thing ever since the advertising firms came out with their "Can't Wait to Get Their...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS