Gold price retreats after getting back above $1600
This morning the gold price got back above $1600, albeit briefly. The spike higher came after more not-so subtle hints that the Federal Reserve in the US is preparing to print more money come their meeting at the end of the month.
“We are right at that edge, that if economic data keep coming in below our expectations — and our view is we are not making progress on our mandates, or we don’t expect to make progress on our mandates — then I think we would need more accommodation,”
San Francisco Fed President John Williams
Then came the ‘good’ news that Europe was saved… again… no really. But also yet again the market got the joke pretty quickly, especially because it now looks like the German Constitutional Court may take up to three month to determine if the ESM is even constitutional.
Remember the ESM? That was the bailout program that was going to ‘save’ Spain. We now have to wait up to 3 months to even find out if it will be constituted at all – that’s quite a bailout package the Eurozone has got going.
Then another blow for the Euro came in the way of Poland now getting cold feet in joining the Euro sighting, rather amusingly, “Euro-area stability’ as a criterion for joining.
You know the Euro is in bad shape when one of the perspective adopting countries is setting their own criterion for joining – it normally works the other way round.
And just like that the $ goes bid and the Euro takes a dive taking back all of this morning’s gold rally.
Ball firmly back in your court Mr Bernanke.
- Gold price falls back to $1600 ahead of Federal Reserve decision
- Gold price struggling to get back above $1600 as Citi says “drop money from helicopters”
- Gold price keeps testing that $1600 level
- Gold price back over £1000 – up 5% from wednesday’s lows
- The gold price ends the month of May up in Euro terms – but dollar strength continues to hold it back
Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-retreats-after-getting-back-above-1600-7265/