Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19
Online Grocery Shopping Will Go Mainstream as Soon as This Year - 17th April 19
America Dancing On The Crumbling Precipice - 17th April 19
Watch The Financial Sector For The Next Stock Market Topping Pattern - 17th April 19
How Central Bank Gold Buying is Undermining the US Dollar - 17th April 19
Income-Generating Business - 17th April 19
INSOMNIA 64 Birmingham NEC Car Parking Info - 17th April 19
Trump May Regret His Fed Takeover Attempt - 16th April 19
Downside Risk in Gold & Gold Stocks - 16th April 19
Stock Market Melt-Up or Roll Over?…A Look At Two Scenarios - 16th April 19
Is the Stock Market Making a Head and Shoulders Topping Pattern? - 16th April 19
Will Powell’s Dovish Turn Support Gold? - 15th April 19
If History Is Any Indication, Stocks Should Rally Until the Fall of 2020 - 15th April 19
Stocks Get Closer to Last Year’s Record High - 15th April 19
Oil Price May Be Setup For A Move Back to $50 - 15th April 19
Stock Market Ready For A Pause! - 15th April 19
Shopping for Bargain Souvenirs in Fethiye Tuesday Market - Turkey Holidays 2019 - 15th April 19
From US-Sino Talks to New Trade Wars, Weakening Global Economic Prospects - 14th April 19
Stock Market Indexes Race For The New All-Time High - 14th April 19
Why Gold Price Will “Just Explode… in the Blink of an Eye” - 14th April 19
Palladium, Darling of the PGEs, Shifting into High Gear - 13th April 19
MMT is a spectacularly Dem idea - 13th April 19
The 'Silver Lines' of Opportunity - 13th April 19
Gold Stocks Bull Market Breakout Potential - 13th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Gold Surges Higher as EU’s ‘Grand Plan’ Leads to More “Irrational Exuberance” and Prevents Contagion

Commodities / Gold and Silver 2011 Oct 27, 2011 - 09:51 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold is trading at USD 1,722.10, EUR 1,228.20, GBP 1,076, JPY 130,520 , AUD 1,622.40 and 10,955 CNY per ounce.

Gold’s London AM fix this morning was USD 1,708.00, GBP 1,067.83 and EUR 1,219.74 per ounce.


Yesterday’s AM fix was USD 1,713.00, GBP 1,070.69 and EUR 1,229.54 per ounce.

Gold rose to a one month high of $1,728.70 immediately prior to the deal. It gradually fell as risk appetite returned to markets but has recovered some of the losses incurred going into the London AM Fix. Euro gold performed similarly.

Gold in Euros – 30 Day (Tick)

Stocks and European bonds have surged in what appears to be another bout of misguided short term euphoria. This is especially the case as the ‘deal’ is long on promise and short on detail.

While, initial market reaction is that EU leaders have made a breakthrough in resolving the region’s two-year old debt crisis - it must be remembered that markets reacted similarly, in the short term, to previous EU ‘deals’.

This latest deal has all the hallmarks of another exercise in ‘kicking the can down the road’.

What is significant is how wrong markets read the situation with Greece which has now in effect defaulted despite continual assertions that they would not.

The sacrosanct principle that sovereign nations have to honour and repay all their debt has been breached which will have obvious ramifications.

Gold in Euros – 1 Year (Daily)

The 'bad boy' of the class Greece has received debt forgiveness while the 'good boys' such as Ireland continue to be punished.

Ireland which has diligently followed the 'Troika's' advice resulting in austerity and a severe recession is due to pay back $1 billion to the unsecured and unguaranteed creditors of Anglo Irish bank next week. Embattled taxpayers in Ireland are now demanding that their government renegotiate and secure better terms.

Contagion remains a real risk especially from Spain and Italy, which unlike Ireland, really are “too big to save”.

Italy’s debt alone is €1.8 trillion (bigger than the $1.4 trillion bailout fund)‎ and their 10 year bond has again risen to close to 6% in recent days. The deal overnight has resulted in the Italian 10 year bond falling to 5.795% - however official intervention is again likely.

Solutions that might have worked if enacted at an earlier stage are being rendered progressively obsolete by the rapidly deteriorating economic conditions (even Germany seems to be slipping back into recession) and terrible debt dynamics globally – including in China and the US.

Differences between European sovereign states are becoming intractable and the assumption that agreement will always be found is naïve.

The detail of the EU debt deal and bank bail-outs and the scale of the European rescue fund is tortuous and convoluted.

However, the underlying problem is much simpler.

Europe’s elites know that for the euro to survive in its present form, it must move – with speed – towards full fiscal and political integration.

Yet some national leaders, and the voters they answer to, are as yet unwilling to accept the loss of sovereignty, and indeed the shared liabilities, that such a revolution demands.

The concern is that the elites again try to fast track their way to a federal Europe and a form of super state against the wishes of their respective peoples. Far from safe guarding the euro, such an approach may lead to its disintegration and indeed may jeopardize the EU and the entire ‘European project’.

Far from gold being a bubble, the real bubble is the European, U.S. and global debt bubble which is unraveling before our eyes with obvious ramifications for all fiat currencies.

SILVER
Silver is trading at $33.60/oz, €23.90/oz and £20.98/oz

PLATINUM GROUP METALS
Platinum is trading at $1,602.70/oz, palladium at $663/oz and rhodium at $1,525/oz

For the latest news and commentary on financial markets and gold please follow us on Twitter.

GOLDNOMICS - CASH OR GOLD BULLION?



'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - 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