|
 |
|
|
|
More Easy Policy, More Currency Debasement in the Cardsby Peter A. Grant
Feb 25, AM 
Gold is firmer this morning, bolstered by a retreat in the dollar. The yellow metal was also quite oversold in the wake of last week's retreat toward the low end of the range.Italian markets were initially buoyed by indications that Pier Luigi Bersani was poised to win parliamentary elections. That in turn lifted the euro. However, some trepidation surfaced later in the day when it appeared that Silvio Berlusconi might control the Senate. Italian markets collapsed and the euro began to retrace on what BusinessInsider called a "stick in the eye to Brussels." Gold garnered additional support from Friday's downgrade of the UK and subsequent drop in the pound to new two-and-a-half year lows versus the dollar and 16-month lows against the euro. This increases the likelihood that the BoE will have to offer additional accommodations to keep rates suppressed. Additionally, Reuters is reporting that Japanese Prime Minister Abe is likely to nominate an advocate of aggressive monetary policy to head the BoJ. Asian Development Bank President Haruhiko Kuroda is seen as a frontrunner. That means that further yen debasement may well be in the cards. More easy monetary policy. More currency debasement. Ultimately that is seen as favorable to gold. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tuesday February 26
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) --