Can the gold price in Euros close at all time monthly highs today?
It is the last day of the month and it’s very possible that the gold price in Euros closes at all time monthly closing highs today. The previous all time monthly closing high in Euros was at the end of January this year, when the gold price closed out that month at €1327 – today the gold price is trading at €1323 – just €4 away from making a new monthly record close.
Gold €:
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In terms of £s the gold price is looking to close the month above the £1030 level and up around 3% on the year.
Gold £:
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In terms of $ gold we’re looking at a its best monthly close in 3 months if it can hold these levels into the close today – a 4% rise on the year.
Gold $:
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There’s still great debate raging about exactly what the Fed will do, ranging from doing nothing, all the way to reducing the interest paid on excess reserves.
The unofficial/official mouthpiece of the Fed is a chap called Jon Hilsenrath over at the Wall Street Journal, who seems to have an impeccable track record (and access?) to all things Federal Reservey . Here’s what he had to say a few days ago about the Thursday decision:
Officials also are looking at changing the interest rate paid on money banks deposit at the Fed. This interest on reserves is now 0.25%. Some critics say the Fed shouldn’t be paying banks even this small amount for money that they choose not to lend.
Fed officials haven’t been very enthusiastic about this idea. Some officials think the benefits of reducing the rate would be small, and some worry cutting the rate could disrupt short-term money markets. Still, officials might choose to reduce the rate in combination with other moves in an effort to give the economy a little extra lift. The European Central Bank cut its bank deposit rate to zero earlier this month. The Fed could also try to push its benchmark interest rate, the federal funds rate, a little lower. Since late 2008, it has targeted a range for the rate between zero and 0.25%. It could narrow that range closer to zero.
Look for gold to explode higher if the Fed go anywhere near reducing the amount paid on excess reserves – after all it’s about the most highly inflationary move the central bank can do at this time.
Related posts:
- Gold price only 6% away from making all time highs in Euros
- Gold price in pounds reaches £1125 – only 6% off all time highs
- Gold priced in €s is about to have its best monthly close… Ever
- Gold ends up having its second highest monthly close… ever
- Gold price falls through its 200 daily moving average to $1670, down 2% for the day – watch the $1677 level into the close today
Link to this article: : http://www.goldmadesimplenews.com/gold/can-the-gold-price-in-euros-close-at-all-time-monthly-highs-today-7504/
Posted by Declan Cosgrove on Jul 31 2012. Filed under Gold News.
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