Gold price slips after both the Fed and ECB fail to deliver

After last night’s nothing-burger that was the Fed announcement (we’ll have to wait until September for that), all eyes fixed on the ECB – and very quickly it became apparent that all Draghi’s pre-talk hype was just that, talk.

The gold price reacted by dipping back below $1600 – it will be interesting to see if buyers turn up today to take the gold price back above $1600 like they did after the Fed meeting yesterday.

Gold $:

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In terms of Euros the €1300 level seems to be providing pretty decent support and currently trades around €1305.

Gold €:

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In terms of £ gold we got the BoE rate decision as well today – however last month the central bank had already made its money printing moves and consequently the gold pice in £ seems to holding up pretty well just below the £1030 level.

Gold £:

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So after the dud that was the ECB no doubt eyes will once again focus sharply back on Europe – and Spain in particular. Let’s not forget that the insolvency of Spain never actually got fixed and their 10 year borrowing costs are now back above 7%. Or in other words nothing has been fixed and the impossible bailout of Spain will try to be attempted in the coming weeks. At which point its onto Italy.

Oh, and Greece, remember them? Well they have €3.2bn in bond redemptions due in August. Look for Greece to come back to the front pages in the next couple of weeks as well.

Related posts:

1. Gold price slips back down to the ‘buying zone’
2. CPI inflation back to 4.5% – 21 months of BoE ‘fail’
3. Gold price drifts lower on the week as Spanish 10 year bonds get back above 7%
4. More bad data as the UK slips further into re-recession
5. Has Chavez been reading GoldMadeSimple News? And can the BoE deliver Venezuela’s gold?

Link to this article: : http://www.goldmadesimplenews.com/gold/7522-7522/

Posted by Thomas Paterson on Aug 2 2012. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.