“Kicking Giant Beer Keg Down Road Risks Destroying The Road”

 


Cross Currency Table – (Bloomberg)

GoldSeek
posted Tuesday, 21 February 2012

Gold’s London AM fix this morning was USD 1,737.00, EUR 1,313.12, and GBP 1,097.98 per ounce. Yesterday’s AM fix was USD 1,729.50, EUR 1,307.36, and GBP 1,090.82 per ounce.

Gold rose to its highest in a week today after euro zone policymakers sealed an agreement for a second debt deal with Greece. Gold remained flat at $1,736/oz in Asian trading after the deal was reached but then saw some buying which saw gold quickly rise to $1,740/oz and then creep up to over $1,743/oz.

U.S. gold rose 1% from Friday’s close to $1,743.5 following the Greek bailout, catching up with gains in cash prices after the U.S. market was shut on Monday for a public holiday yesterday. Gold subsequently fell back to $1,737/oz in mid morning European trade.

Asian stocks were mixed and European indices are lower. This is either a case of ‘buy the rumour, sell the news’ or maybe market participants are beginning to get nervous regarding successive efforts at kicking the much abused can down the road and are nervous about other highly indebted industrial nations.

Gold has consolidated between $1,700 and $1,750 in the past two weeks as Greece has struggled to avoid default which could lead to contagion in the euro zone.

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