Gold Moves Higher As Greece Crisis Moves Up A Gear, Financials Get Pummelled
by Tyler Durden
Gold is moving up again in U.S. dollars and is trading at USD 1,818.29, EUR 1,331.50, GBP 1,155.79, JPY 139,571.90, AUD 1,854.66 and CHF 1,603.73 per ounce.
Gold’s London AM fix this morning was USD 1,817, EUR 1,332.31, and GBP 1,155.56 per ounce.
Yesterday’s AM fix was USD 1,778, EUR 1,288.67, and GBP 1,126.24 per ounce.
Stocks Down, Gold Up, no consensus, no plan, the death of the Euro by a thousand cuts continues. This morning the Euro banks are getting pummelled as their exposure to a potential Greek default grows.
The IMF inspectors are due to visit Greece tomorrow. If the Greek Prime Minister George Papandreou’s cancellation of his U.S. trip is any indication then what they will find may not be good news at all.
Gold rose on Friday on the news that private participation in the Greek bond swap would miss the required 90% level, gold then climbed a robust $58. The Eurogroup/Ecofin meeting has disappointed the market as little or nothing of substance came from the meeting. If anything it has underscored the deep level of disunity in Europe as to how to manage this crisis going forward. This week’s U.S. Federal Open Market Committee meeting may give a clue as to what quantitative easing initiative awaits the market this year. FOMC watchers are indicating that a recognisable increase in rhetoric on the topic will become evident. Paper and ink futures are sure to soar from here.