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Gold Traders Extend Bullish Call On European Debt Crisis
Gold traders are bullish for a sixth week on speculation that Europe’s debt crisis will boost demand from investors seeking to protect their wealth and drive prices higher after moving to within 1 percentage of a bear market.
Sixteen analysts surveyed by Bloomberg said they expect a rally next week and 10 were bearish. Another five were neutral. Investors added almost $2 billion to holdings in gold-backedexchange-traded products this month, the most since November, according to data compiled by Bloomberg. Hedge funds and other speculators have increased bets on a rally for four consecutive weeks, U.S. Commodity Futures Trading Commission data show.
One thousand gram gold bars. Photographer: Kerem Uzel/Bloomberg
Spain formally asked for a bailout for its banks on June 25 and Cyprus that day became the fifth member of the 17-nation euro zone to ask for outside help. European leaders agreed today to ease repayment rules for emergency loans to Spanish banks and relax conditions on potential help for Italy. Gold came close to a bear market in May as some investors sold bullion to cover losses in stock markets as $7 trillion was erased from global equities in about two months.
“While demand has been weaker for bullion in recent months, it has picked up in the last month,” said Mark O’Byrne, the executive director of Dublin-based GoldCore Ltd., a brokerage that sells and stores everything from quarter-ounce British Sovereigns to 400-ounce bars. “A resolution to the crisis is not going to be seen in the short term. A lot more speculators could pile back into the market.”
Prices Slide
Gold tumbled 4.4 percent to $1,598.40 an ounce since the end of March, the biggest retreat since the third quarter of 2008. Bullion is up 2 percent this year which compares with an 8.8 percent slide in the Standard & Poor’s GSCI gauge of 24 commodities and a 3.9 percent advance in the MSCI All-Country World Index of equities. Treasuries returned 2.1 percent, a Bank of America Corp. index shows.
The metal fell 3.8 percent last week, the most this year, as the Federal Reserve refrained from announcing a new round of debt purchases to shore up growth. Bank of England GovernorMervyn King told lawmakers June 26 the world isn’t yet halfway through the global financial crisis that began in 2007 and said his backing for more stimulus this month reflected concern the outlook is deteriorating amid Europe’s debt crisis.
12 comments:
Not sure why PMs are all so happy; there are no printing mechanisms here in this version of a bailout. Still and all, if I were long PMs, I'd stay that way. At some point the CB's will have to reflate due to the ongoing deflationary strangulation. When it happens, they're gonna go BIG.
Mr. K, do you smell a 'bear trap' in the short term, as far as PM's go?
GAW, Happy Canada Day! Be sure to dance around the room holding a hockey stick while chanting, "Eh?" I will toast all our friends in the frozen northlands with a shot of Vodka this evening...
They sold off oil hoping for more QE and to pave the way for sanctions on Iran. All markets are controlled by the maggots for the maggots.
I pledge allegiance to the flag of the United Bankster's of America. And to the Plutocracy for which it stands, one nation under Fascism, Easily dividable with the MSM. Let there be Liberty and justice for no one unless you can afford it. Of course this pledge is only for the peons who live under the tyranny of the UB of A. Long live the Banksters and their families! Long live the politicians who support their right to rule. May we all live in debt until death due us part and then our children must pay the bill. God bless The Bankster's of America as they do so much to make our lives better.
P.S. and especially for Goldman Sachs and their CEO Lord Blankcheck as he does God's work. A true modern day Jesus.
As for PMs if you listen to the interview the guy is still short PMs. This to me is a big ass bull trap with all the trimmings. Jump on in the water is fine.
Sell now and sell it all as cash is king! Or don't listen to me as I dropped my crystal ball on Friday, but it is 50/50 that I am right.
Sell, Buy, Sell, Buy. It's a trap...all of it. Think about this..they want us to BUY as it is the only way to get the economy growing BUT they've insured that the only way you can buy is on credit as they won't pay interest on savings. They want us to stop driving to 'save the earth' but they fly all over and if we stop driving that will raise the price of oil, manufacturing, etc. Plus, you have computers and certain slippages of information that seem timely and a lack of commitment to law.
"Tis a paradox, a paradox, a most unusual paradox with no, 'I have a little list, and nothing will be missed. Let the punishment fit the crime, the punishment fit the crime."
We speak of bankers, politicians, etc. here...yet the 'crimes' begin when the first 'blind eye' is turned, the first small 'cheating' of taxes happens, the first 'tit-for-tat' raises its ugly head within our minds.
Lest we forget the good banks and corporate sponsorship provides we must keep perspective. It is the EXCLUSION that is the irritant. Politicians ensure THEY don't have to have the same pensions, health plans, and obedience to law that the common citizens have. Just as kings of old, they expect the peasantry to swear allegiance and loyalty from us, pretending to give us protection.
Everyone has a different solution or theory. It is somewhat like growing old. Old people tend to try to hoard their money not because they are selfish, but because they don't want to have to depend on others. We'd be wise to know who is dependable in our lives and remember that, much like the Highlander movie, in the end there can be only one--ourselves that we may have to depend on.
I am out and about in Antwerp at the moment. The diamond shops reek of a tourist trap and I have not seen any colored diamonds that were touted in an article here a few months ago. The diamond district looks like something out of "Fiddler on the roof" as it is full of different types of Hassidim. I am not tempted to buy any diamonds but I will be going to the kosher bakery around the corner as the bread there is something else in comparison to the industrial crap that is sold in Britain
Antwerp is interesting as it is for more multi cultural for it's size than even London. However I am surprised Clear Channel and co allow their hoardings to be used to carry the propaganda of the Flemish nationalist party whose content would be banned in the UK
Stuff like this .....
http://www.vlaamsbelang.org/campagnes/13/
Ah Yes the colored diamond auctions by H Seigal. I didn't think it was a scam, but I just wasn't interested
http://www.hsfineauctions.com
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