Chart usGOLD   Chart usSILVER  
 
Food for thought
The heart of a statestman must be in his head
Napoléon Bonaparte  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1293.800.34
Silver 20.29-0.02
Platinum 1456.30-1.45
Palladium 861.900.15
WORLD MARKETS
DOWJONES 16493-68
NASDAQ 4353-17
NIKKEI 15523-98
ASX 5548-76
CAC 40 4203-43
DAX 9210-197
HUI 2373
XAU 991
CURRENCIES (€)
AUS $ 1.4408
CAN $ 1.4654
US $ 1.3420
GBP (£) 0.7978
Sw Fr 1.2160
YEN 137.6700
CURRENCIES ($)
AUS $ 1.0742
CAN $ 1.0915
Euro 0.7452
GBP (£) 0.5947
Sw Fr 0.9058
YEN 102.5500
RATIOS & INDEXES
Gold / Silver63.77
Gold / Oil13.22
Dowjones / Gold12.75
COMMODITIES
Copper 3.22-0.01
WTI Oil 97.85-0.32
Nat. Gas 3.79-0.05
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Gold, Silver Fail to Recover Losses Despite Talk of Currency Wars and Nuclear Testing
Published : February 13th, 2013
773 words - Reading time : 1 - 3 minutes
( 0 vote, 0/5 ) Print article
 
    Comments    
Tweet



24hGold - Gold, Silver Fail to...

London Gold Market Report

From Ben Traynor

U.S. DOLLAR gold bullion prices failed to recover yesterday's lost ground Tuesday morning, hovering below $1650 per ounce, as stocks and commodities eased higher and the Euro gained against the Dollar, following news of a fresh nuclear test in North Korea and denials from policymakers that a currency war is taking place among major economies.

Like gold, silver also failed to make up ground lost yesterday, trading below $31 throughout this morning.

The G7 group of economies reaffirmed their "longstanding commitment to market determined exchange rates" in a joint statement published Tuesday.

"We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates," said the statement attributed to G7 finance ministers and central bank governors.

"We are agreed that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will continue to consult closely on exchange markets and cooperate as appropriate."

G7 member Japan last month announced it will implement open-ended quantitative easing next year when its current QE program ends, as part of efforts to raise the inflation rate towards a new 2% target.

Following the start of the financial crisis in 2007, the Yen appreciated against the Dollar from over ¥120 to just over ¥75 by August 2011. That month, Japan intervened in the market by selling ¥1 trillion, while the Bank of Japan increased the size of its QE program. The Yen has since fallen against the Dollar to more than ¥90.

"There is no such thing as a currency war," says former Swiss National Bank chairman Philipp Hildebrand, writing in the Financial Times.

"Central banks are simply doing what they are meant to do and what they have always done. They set monetary policy consistent with their domestic mandates. All that has changed since the crisis is that central banks have had to resort to unconventional measures in an effort to revive wounded economies."

In September 2011, the SNB pegged the Swiss Franc to the Euro at a rate of SFr1.20, saying it was prepared "to buy foreign currency in unlimited quantities" as part of a stated effort to achieve "substantial and sustained weakening" of the Swiss Franc.

The Franc fell against the Euro this morning following comments by current SNB chairman Thomas Jordan, who said he expects the SFr1.20 peg to remain in place and that the Franc will weaken against the Euro.

"Currencies should not be used for commercial purposes," said French president Francois Hollande this morning, one week after calling for a "medium-term exchange rate" target in a speech to the European Parliament last Monday.

The Euro rallied against the Dollar this morning, regaining some of last Thursday's losses. Gold in Euros fell to its lowest level since the start of the month, down 2% on the week at around €39,300 per kilo by lunchtime in London.

Gold in Dollars was down 1.3% on where it started the week, while gold in Sterling was virtually unchanged and gold in Yen was up.

Spain's borrowing costs meantime rose this morning at an auction of one-year government debt, with average yields rising from 1.472% at an auction on January 15 to 1.548% this morning.

Spain's prime minister Mariano Rajoy is due to meet European Central Bank president Mario Draghi later today, before Draghi makes a speech to the Spanish parliament.

UK inflation remained at 2.7% last month, official data published Tuesday show, the 38th month in a row that it has been above the Bank of England's 2% target.

"Inflation is likely to remain well above the 2% target for quite some time," reckons said James Knightley, economist at ING Bank in London, who adds that the Bank if likely to restart its QE program soon "which may continue to weigh on Sterling".

Barclays meantime is to cut 3700 jobs worldwide as part of a strategic review aimed at cutting costs by £1.7 billion, the bank announced Tuesday.

Ben Traynor

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben can be found on Google+

(c) BullionVault 2013

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.


Data and Statistics for these countries : Japan | Jordan | Spain | All
Gold and Silver Prices for these countries : Japan | Jordan | Spain | All
Tweet
Rate :Average note :0 (0 vote)View Top rated
Previous article by
Bullion Vault
All articles by
Bullion Vault
Next article by
Bullion Vault
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Bullion Vault

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.
Bullion Vault ArchiveWebsite
Most recent articles by Bullion Vault
12/20/2013
12/18/2013
12/17/2013
12/16/2013
12/13/2013
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer