Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20

Market Oracle FREE Newsletter


Gold Bullion Well Supported as Athens Faces Petrol Bombs

Commodities / Gold and Silver 2011 Jun 17, 2011 - 07:39 AM GMT

By: Ben_Traynor

Commodities Best Financial Markets Analysis ArticleU.S. DOLLAR  gold bullion prices bounced to $1528 per ounce Friday morning London time – just below where they started the week – as commodities fell and US Treasuries dipped. Stock markets rallied, but were still on course for a loss on the week.

German chancellor Merkel and French president Sarkozy meantime met to try and resolve the Eurozone's deadlock over Greek debt restructuring.

"The alternative to compromise would be outright default," says David Mackie, chief European economist at JP Morgan Chase in London.

"It would lead to a collapse in the Greek banking system and the economy, and would likely generate a significant financial crisis across the region."

"Lingering macroeconomic uncertainty is helping to keep flight-to-safety inflows into bullion well supported," says Swiss precious metals refiner MKS.

"The $1500 an ounce mark [for gold bullion] does not appear to be in any danger," adds the latest note from German precious metals dealer Heraeus.

The gold price in Euros, meantime, fell to €34,371 per kilo (€1069 per ounce) on Friday – 0.4% off last week's highest ever Friday close.

The Sterling gold bullion price was on course Friday lunchtime to set a new record weekly close, bouncing off a low of £944 per ounce, a shade above where it ended last week.

Silver prices also fell before rallying, hitting $35.50 per ounce by the end of Friday morning – 1.9% down for the week.

"With a decline in commodities and the Dollar creeping higher, gold lacked momentum this week to break its lull," said Hwang Il Doo, senior trader at KEB Futures in Seoul on Friday.

"Still, the dip may be a good buying opportunity," Bloomberg quotes Hwang, because the Greek debt crisis "shows no signs of ending."

Greece got a new finance minister Friday morning after a cabinet reshuffle following prime minister George Papandreou's failure on Thursday to form a cross-party national unity government in support of €78 billion of new austerity measures agreed as a condition of a fresh bailout.

Evangelos Venizelos – who stood against Papandreou for the party leadership – replaces George Papaconstantinou. 

"Nobody wanted the job," the Wall Street Journal quotes an official source. "Finding someone to replace Papaconstantinou was very difficult."

Protesters in Athens on Thursday threw petrol bombs at the Greek finance ministry.

The austerity measures are "a joke" one protestor told CNN.

"If no one has money and we are just more in debt, who is going to drive the economy?"

The yield on Greek 2-year government bonds fell Friday after breaching 30% the previous day.

Merkel and Sarkozy meet in Berlin Friday in an effort to break the deadlock over a new Greek aid deal. 

"The government should only back new aid for Greece with an adequate share from private creditors," says Klaus-Peter Flosbach, financial policy spokesman for Merkel's Christian Democrats.

Any deal would have to "observe a number of red lines" warns Jean-Claude Juncker, chairman of the Eurozone finance ministers, echoing the European Central Bank by calling for no default, no rating downgrades and only voluntary private sector losses.

"The chances of Greece not defaulting are very small," agrees former US Federal Reserve chairman Alan Greenspan, who worries the contagion resulting from a Greek default could leave some US banks "up against the wall".

Away from Greece, Italian prime minister Silvio Berlusconi has asked European Central Bank board member Lorenzo Bini Smaghi to resign, thus enabling the Bank of Italy's Mario Draghi to take the role of ECB president without upsetting the balance of different nationalities on the executive.

"In the last few weeks the situation of the international economic and financial markets got further skewed in favor of [gold bullion]," writes Wolfgang Wrzesniok-Rossbach in German refinery Heraeus's latest weekly note.

"For gold investors here in Germany this could well mean that the next buying spree is only a question of time."

By Ben Traynor

Gold price chart, no delay   |   Buy gold online at live prices

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.

(c) BullionVault 2011

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.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules