Gold price starts the week higher but is still rangebound
Gold has started the week higher in what is likely to be a quiet rest of the month for the markets. It looks like the ECB has managed to kick the Greek can a month longer thanks to the European central bank reducing what type of collateral they accept:
(Reuters) – The European Central Bank (ECB) has saved Greece from bankruptcy for the time being by securing it interim financing in the form of additional emergency loans from the Bank of Greece, German newspaper Die Welt said on Saturday.
The ECB’s Governing Council agreed at its meeting on Thursday to increase the upper limit for the amount of Greek short-term loans the Bank of Greece can accept in exchange for emergency loans, the newspaper said in an advance copy of the article due to appear in its Saturday edition.
Then there is the little matter of the ‘impossible bailout’ for Spain, which also seems to have been given a stay of execution for the immediate future. This is thanks to Draghi, the ECB head coming out and hinting strongly that he has a solution to problem that is Spain – without really expanding on it of course.
This all smacks more of Eurocratti wishful thinking, wanting to get to their summer vacation homes on the beach during August ,and not wanting to be disturbed by Europe disintegrating whilst they’re getting their bronze on, more than and long term solution for Europe being found. Yes Europe really does work like that.
It seems that the gold market isn’t being fooled by all this eternal ‘can-kicking’ again. Today dollar gold is nicely back above $1600:
And £ gold is trading above that £1030 level that it is having such a tough time closing above:
In € terms that €1300 level is holding up pretty well:
All in all gold is creeping back towards the top end of its trading range, one that has now entered its 5 month. However its hard to see right now what is going to break gold out of the top of that range now that the Eurocratti have decided that August is to be a month of undeserved R&R – but will they get their wish?
- Gold price starts the week higher as Spain’s problems come into focus
- As UK producer prices come in higher than expected will next week’s CPI follow suit?
- Gold price pops higher on the week – and the curious case of the $60bn Loco London gold fraud
- Gold Update: Mervyn King starts talking – and gold starts moving upwards
- Gold price rises this morning as the BoE starts its money printing program
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