Spain the Latest Domino to Fall Into the Eurozone Bailouts?
JULY 23, 2012
Today's AM fix was USD 1,571.50, EUR 1,298.12, and GBP 1,011.91 per ounce.
Friday’s AM fix was USD 1,583.00, EUR 1,291.30and GBP 1,007.83 per ounce.
Gold climbed $2.90 or 0.18% in New York on Friday and closed at $1,583.90/oz. Gold initially traded sideways in Asia and then began to fall about 0.75% by the open of trading in Europe.
Gold edged down on Monday due to the pressure from a stronger dollar, as worries about the Eurozone debt crisis grew after Spain looked like the next candidate for a sovereign bailout.
Spain has two regions seeking aid from the central government and El Pais reported that six Spanish regions may ask for aid from the central government while Spanish bonds yields continue to rise. As the 4th largest economy in the Eurozone Spain looks likely to follow Greece, Portugal and Ireland seeking an international bailout.
Greece’s creditors meet this week as many doubt they will meet their bailout commitments. German Vice Chancellor Philipp Roesler said he’s “very skeptical” that European leaders will be able to rescue Greece. China’s economic expansion may fall for a 7th straight quarter to 7.4% in the three months to September, said Song Guoqing, a member of the People’s Bank of China monetary policy committee.
Technical analysis suggested that spot gold would be neutral in the range of $1,567.34 - $1,597/oz said Wang Tao a Reuters market analyst.
Investors are favouring safe haven assets such as the dollar, yen and U.S. Treasuries while some just sit on cash until more clearer signals from the US Fed are given.
Dollar, yen rally on raging Greece, Spain fears - MarketWatch
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Special report: After Libor, where will the next scandal be? – The Independant
LIBOR Scandal And Its Effects On Gold And Silver Lease Rates – Seeking Alpha
The Economic Collapse For Dummies – Zero Hedge
Will the LIBOR scandal be the one to take down the banking system? - MSN
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