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
A Lesson About Gold – How Bullish Can It Be? - 24th Jan 20
Stock Market January 2018 Repeats in 2020 – Yikes! - 24th Jan 20
Gold Report from the Two Besieged Cities - 24th Jan 20
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Gold Rebounds, Greek People asked to say "Yes or No" to Euro, FOMC "To Lay Ground for QE2"

Commodities / Gold and Silver 2011 Nov 02, 2011 - 07:16 PM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleTHE SPOT MARKET gold price climbed to $1736 an ounce in early London trading – 3.1% above Tuesday's low – before falling back a bit, while European stock makrets halted recent steep declines but failed to stage a convincing rally following news that Greece's prime minister had been summoned to France to explain himself after calling for a referendum on last week's bailout deal.


"This latest development...will make markets that much more skeptical of the reassurances that inevitably will be offered by other Eurozone leaders in the coming days," says one gold bullion dealer here in London.

"The medium term trend in the gold price remains bullish," adds Commerzbank technical analyst Axel Rudolph, "while [gold is] trading above the $1595.65 October low."

Silver prices hovered around $33.80 per ounce – 4.3% down for the week so far.

On the futures markets, prices for most commodities edged higher, while US, UK and German government bonds all sold off.

The Euro rallied against the Dollar after three days of losses – though it remains significantly below where it was a few days ago.

Greek prime minister George Papandreou was summoned to Cannes on Wednesday for a meeting with German chancellor Angela Merkel and French president Nicolas Sarkozy, ahead of the G20 summit.

The meeting follows Papandreou's call for Greece to hold a referendum on the bailout package agreed last week.

The Greek cabinet last night backed Papandreou's referendum call – although some ministers reportedly expressed their reservations, but decided to back the government ahead of a confidence vote scheduled for this Friday.

"The dilemma isn't 'This or another government'," Papandreou told his ministers on Wednesday before heading to Cannes.

"The dilemma is 'Yes or no to the loan accord', 'Yes or no to Europe', 'Yes or no to the Euro.'"

"Giving the people a say is always legitimate," French president Nicolas Sarkozy said last night.

"But the solidarity of all countries of the Eurozone cannot work unless each one consents to the necessary efforts...[last week's deal] is the only way to solve Greece's debt problem."

"[The deal to which] we just agreed last week cannot be placed back on the table," added German foreign minister Guido Westerwelle.

Last week's agreement included a 50% 'haircut' on private sector-held Greek bonds.

However, points out Michael Kemmer, head of Germany's banking lobby, "I can't imagine a debt exchange taking place before the referendum."

The Greek government says the referendum will take place "as soon as possible", once the details of the bailout are known.

The Euro rallied over 2% against the Dollar last Thursday after the deal was announced. Since then, however, it has fallen by over 4%.

The Euro gold price on Wednesday morning meantime were around 3% higher than last Thursday's low.

Elsewhere in Europe, a €3 billion auction of European Financial Stability Facility bonds scheduled for today has been postponed, with the lead managers on the issue citing "recent market volatility".

Klaus Regling, EFSF chief executive, last week travelled to China and Japan to present the advantages of investing debt issued by the triple-A rated Eurozone bailout fund. Neither country committed to buying bonds.

Italian 10-Year government bond yields remained above 6% Wednesday morning despite retreating from Tuesday's highs.

Yields on shorter-dated debt meantime have risen sharply since last Thursday. Italian 6-Month Treasury Bill yields have risen from 3.5% to 4.5%, while 12-Month have gone from 3.8% to nearly 5.2%.

Back in July, Italy cancelled an auction of medium and long-dated bonds scheduled for August, announcing that 12-Month Bills would be regularly offered instead.

German unemployment meantime rose in October by 10,000 people – the first monthly unemployment rise since February 2010 – according to official data released this morning.

"People who hadn't realized before should realize now that Europe's issues will continue to be troublesome and difficult," says Jeremy Friesen, Hong Kong-based commodities strategist at Societe Generale.

"There will continue to be risks, which will put more and more pressure on central banks...to be more accommodative," a development which Friesen adds "will be bullish" for the gold price.

Over in Washington, the Federal Open Market Committee – which decides US monetary policy – is due to conclude its two-day policy meeting later today.

"We are becoming increasingly persuaded that QE3 is coming," says Dana Saporta, US economist at Credit Suisse in New York, referring to a possible third round of quantitative easing.

"The best guess is at this meeting they'll try to build some consensus around the idea and lay the groundwork for eventual purchases."

Private sector employment in the US rose by 110,000 people last month – compared to 116,000 in September – according to the ADP Employment Change report, published today by payroll services firm Automatic Data Processing. The ADP report is released each month ahead of the US Bureau of Labor Statistics nonfarm payrolls data.

By Ben Traynor
BullionVault.com

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 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