Gold price drifts lower on the week as Spanish 10 year bonds get back above 7%

The gold price continues trading in its very narrow range this week matching the highs of last week at $1600, but the lows were much tighter at $1567 – in fact this week saw the narrowest trading range for gold since mid-April.

Gold $:

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Gold €:

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Gold £:

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Elsewhere Spain’s borrowing costs have returned back to where they were trading before the EU summit to fix all that ails the Eurozone.

Spain 10 year:

No doubt this news will be met with calls for yet more summits as the powers that be scramble to try and plug the ever increasing debt-hole with re-financing programs that actually don’t exist (***cough*** ESM ***cough***).

In terms of when we can expect gold to break one way or the other out of its trading range that its been in since the start of the year, we’ll probably have to wait at least until after the next Fed meeting, which is scheduled to end at the start of August, to find out.

So what can we expect to come out of that meeting? We got a pretty good idea this week when the Fed chair was up in front of Congress – we got the usual ‘we stand by’ and the ‘we stand ready to act’, but it was very clear that the Fed was  trying to put off any new monetary stimulus until after the US election – something we thing he’s going to have a very tough time doing as the money-printing addicted markets throw a massive hissy-fit when they get the joke.

Chart: BBerg

Related posts:

1. Gold price now down for the week as Spanish bond yields explode and Italy’s 10 year goes back above 6%
2. Gold price drifts lower only to ‘pop’ back towards $1650 as the bull/bear attrition battle rages on
3. Spanish 10 year now trading well above 5.56% as Spanish banks hide €50bn in bad debt
4. Spain and Italy 10 year bonds trading in the ‘danger zone’ as Europe meets
5. Gold price back flat for the year as ex-presidential hopeful Herman Cain now supports a gold standard

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-drifts-lower-on-the-week-as-spanish-10-year-bonds-get-back-above-7-7356/

Posted by Thomas Paterson on Jul 20 2012. Filed under Analysis, Gold News, Markets. 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.