- Gold Prices Hit 22-Month Euro High as Paris Prepares for 'Act 13', 'Deluded Left-Wingers' Back Maduro Over BoE Gold Request
8 Feb 2019
- Gold Price at 22-Month EUR Highs as France Recalls Ambassador to Italy
8 Feb 2019
- India Gold Prices Hit Record High, 'Demand Good', Smuggling Jumps
7 Feb 2019
- Gold Price Flat, GLD Shrinks as Chinese Traders Clock Off for Lunar New Year
5 Feb 2019
- Gold Price Drops $15 from 8-Month High, Crude Oil Gains as US-Russia Tensions Worsen Over Venezuela, Arms
5 Feb 2019
- BJP's Pre-Election Giveaways and Tax Cuts 'Will Boost India Gold Demand' as USD Price Holds 8-Month High
2 Feb 2019
- Central Banks Buying Rescue Gold from Weakest Demand Since 2009
1 Feb 2019
Gold Bullion 'Disappointing', 'Unaffected' by Greek Crisis as Athens 'Caves In', Dollar Rises on US Jobs Data
GOLD BULLION slipped in London trade Wednesday, dipping near 4-week lows as the Dollar rose following strong US jobs data and European stock markets rallied amid fresh “concessions” by Athens in seeking a new bail-out program from its Eurozone and IMF creditors.
The June report from private-sector payrolls service ADP said the US economy added 237,000 jobs last month – the second highest figure this year, and 9% ahead of the average analyst’s forecasts.
“This did not provide further clarity,” said German finance minister Schaeuble meantime, refuting a leaked letter from Greek prime minister Tsipras accepting the major terms of a bail-out offer now expired, but still being put to a referendum this weekend.
“All people in Greece must realise this risk,” said Slovakia’s finance minister Kazimir separately, that a ‘no’ vote on Sunday means Greek banks – closed this week as part of emergency capital controls – will never re-open using the Euro currency.
“Tsipras seems to have caved in,” said BBC economics editor Robert Peston.
“Tsipras backs down,” said the Financial Times, which published the leaked letter.
The Dollar on Wednesday pushed the Euro beneath $1.11 – a 13-year low when first reached this March – following the ADP jobs report.
Silver dipped near 3.5-month lows below $15.60 per ounce, after closing June at the lowest monthly finish in Dollar terms since August 2009.
Wholesale gold bullion prices in London held around $1170 per ounce, a four-year low when first reached last October.
“Price action is disappointing,” says one Asian bullion desk in a note.
“Gold might be expected to remain in a narrow range this week, having absorbed a lot of news already.”
The Greek crisis is “in unchartered territory,” says Australian bank ANZ’s commodity strategist Victor Thianpiruiyam. But financial markets seem “a little more confident with the situation now,” he’s quoted by CNBC, wth “reassurances from Eurozone officials that the contagion risk from Greece will be relatively small, if any at all.”
“The things going on in Greece,” says US analyst and fund manager at Van Eck Global Joe Foster, “aren’t affecting the US and they may not even affect Europe.
“Gold really responds to financial stress or economic stress in the US more than anything,” said Mr Foster.
Share prices in Shanghai meantime closed Wednesday more than 5% lower, extending their drop over the last two weeks to more than one-fifth as reports said ‘margin trading’ using credit from stock brokerages continues to be unwound.
Disclaimer
This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. This report was produced in conjunction with ABC Bullion NSW.