|
 |
|
|
|
Gold Jumps Along with Euroby Peter A. Grant
Jan 10, AM 
Gold surged in early New York trading on Thursday, spurred by higher than expected U.S. initial jobless claims and a rebound in the euro back above 1.3200. Strength in the euro forced the dollar index back below 80.00. Today's gains put the yellow metal back aboe the 200-day moving average once again.Both the BoE and the ECB held steady on rates today. There were some that suggested the ECB might cut the refi rate to 0.50% as soon as today, so initial euro gains may have reflected some unwinding of these expectations. However, ECB chief Mario Draghi revealed in his press conference that the vote to hold the refi rate at 0.75% was unanimous. With seemingly no pressure at this point from monetary doves, the euro began to build on those earlier gains. Dragi indicated that growth could return to the EU this year, but he also said that the real economy remains weak at this point. While I suspect a rate cut could still happen, if that weakness persists deeper into the new year, steady policy now seems secure for the remainder of Q1. The interest rate differential with the U.S. — albeit a small one — will tend to favor further euro gains versus the dollar. Unless of course, some new uncertainty with regard to eurozone sovereign debt crops up; which is a possibility that should not be completely discounted. NEWSLETTER SIGN-UP Opinions expressed in commentary on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thursday January 10
website support: sitemaster@usagold.com
Site Map - Privacy - Disclaimer
The USAGOLD logo and stylized gold coin pile are trademarks of
Michael J. Kosares.
© 1997-2012 Michael J. Kosares / USAGOLD All Rights Reserved
(from USAGOLD.com) --
