Live London Gold News Wire

NEW in the last 5 minutes www.usagold.com --LIVE NEWS--
European Markets Gain Ahead of Eurozone Economic Data	02:44 IBTimes.co.uk - Global Markets
Forex Flash: AUD strengthens following RBA decision - BTMU	02:41 FXstreet - Forex News
Forex: GBP/USD jumps on surprising UK Services PMI	02:41 FXstreet - Forex News
Forex Flash: RBA holds rates and maintains easing bias - Societe Generale	02:41 FXstreet - Forex News
5 to 10 minutes old www.usagold.com --LIVE NEWS--
Mansion tax row could have serious consequences for the economy, says deVere CEO	02:39 FinancialReporter.co.uk
FOREX-Euro rises after data, gains seen as fragile	02:38 Reuters - Economy
Morgan Stanley Plans 5-Year Euro Bond Issue	02:36 Fox Business - Industries
Treasury 10-Year Notes Drop, With Yield Rising to 1.90 Percent	02:36 Bloomberg - Markets - Bonds
Yen under pressure in Asia on easing speculation	02:36 Times of Oman
China looks to green economy to hit GDP growth target of 7.5 per cent	02:35 New Statesman - Current Account
10 to 15 minutes old www.usagold.com --LIVE NEWS--
'Pvt gold investors less bearish than funds in Feb'	02:34 The Economic Times - Markets
New York City’s Spike in Homeless Families Illustrates Severity of Economic Stress	02:32 naked capitalism
Forex Flash: EUR & GBP prospects stay bearish - OCBC Bank	02:31 FXstreet - Forex News
Forex Flash: Monday morning’s risk blues are blown away by easy money, yet again - Societe Generale	02:31 FXstreet - Forex News
ECB to hold off fresh crisis measures for now	02:30 Reuters.co.uk - Business & Finance
Surveillance cams help police nab copper thieves	02:30 Brattleboro Reformer, Vermont - Business
15 to 30 minutes old www.usagold.com --LIVE NEWS--
Further to my Yen post, anyone else for USDJPY @ 200 ?	02:29 ForexLive.com
February retail sales show strongest growth for three years	02:29 Talking Retail
Retail Sales Driven Up By Tablet Demand	02:26 Sky News - Business
Divided eurozone economy declines further in Feb: PMIs	02:25 Business Times Online - World
Euro-Area Services Output Contracts Less Than Estimated	02:24 Bloomberg - Germany
Euro Advances for Second Day Against Dollar After Output Report	02:22 Bloomberg - Japan
Saudi Spending Fuels Fastest Gulf Inflation: Arab Credit	02:22 Bloomberg - Markets
Forex: USD/CHF falls to 0.9395/97	02:21 FXstreet - Forex News
Forex: EUR/GBP rallies on EMU Services PMI, waiting for UK data	02:21 FXstreet - Forex News
Forex: EUR/USD in session highs after German PMI	02:21 FXstreet - Forex News
Euro Mins want to extend Ireland's loans	02:21 Business World
Private gold investors less bearish than funds in Feb -survey	02:18 Reuters - Industry, Materials & Utilities
Ceramic Fuel Cells suspends Sanevo distribution deal	02:16 MoneyAM
German private sector growth suggests economy expanding: PMI	02:15 Business Times Online - World
30 minutes to 1 hour old www.usagold.com --LIVE NEWS--
Forex Flash: Soft UK PMIs could get tongues wagging - Societe Generale	02:11 FXstreet - Forex News
Forex: EUR/JPY boosted by better than expected Services PMI	02:11 FXstreet - Forex News
Commodities Brief – Silver makes upside attempt at 29.00, precious metals eye central banks and US data	02:11 FXstreet - Forex News
Gold Investor Index Slips to 5-Month Low	02:11 Bullion Vault
Euro lifted by better Services PMI data	02:09 ForexLive.com
Retail sales rise at fastest pace for 3-years, says BRC	02:07 MyFinances.co.uk
Forex Prices at 09:00	02:06 MoneyAM
Budget 2013: 7 predictions for the chancellor's statement	02:05 Citywire - Money
Retail sales rise 2.7% in February	02:02 Retail Bulletin
Forex Flash: EUR support could fade away ahead of ECB – Danske Bank	02:01 FXstreet - Forex News
Dubai Chamber brings diplomatic corps face to face with Foreign Ministry for Economic Affairs official	02:00 AL Bawaba
Market movers including Wildhorse Energy, Sirius Minerals, Condor Gold and Solo Oil	01:56 Proactiveinvestors
Hong Kong’s PCCW Markets U.S. Dollar Debt With AIA, Swiss Re	01:55 Bloomberg - Industries
Condor Gold PLC : Preliminary Economic Assessment	01:53 InvestEgate (Company Announcements) - Company Announcements
Pound Rises Versus Dollar, Trades Little Changed Against Euro	01:51 Bloomberg - Markets - Currencies
Forex Flash: BoE might increase QE on disappointing UK Services PMI – TD Securities	01:51 FXstreet - Forex News
Forex Flash: Majors down on Dollar as spending cuts kick in - OCBC Bank	01:51 FXstreet - Forex News
Irish Economy: Eurogroup finance ministers back extension of debt maturities of Ireland/ Portugal	01:47 finfacts.com
2013 Forbes Billionaires List: Southeast Asia's Silver Tycoons Creak Into View	01:47 Forbes.com
1 to 2 hours old www.usagold.com --LIVE NEWS--
Lancashire Deal of the Month – Euro Garages	01:42 Insider Media - North West

Serial QE Offenders Continue to Offend

by Peter A. Grant

Mar 04, AM
(from USAGOLD.com) --

Gold is narrowly confined as the dollar remains firm. However, much of what is weighing on the euro, pound and yen is also sapping risk appetite, keeping the yellow metal underpinned ahead of the range low.

Soft economic data out of Europe has raised the specter of an ECB rate cut once again, pushing the EUR-USD rate back below 1.30 recently. Additionally, political uncertainty in the wake of last week's Italian elections is contributing to risk aversion.

Similarly, weak data out of the UK is weighing heavily on Sterling, which is trading at levels last seen in June 2010. Most notable was last week's unexpected plunge in February Manufacturing PMI to 47.9, well below market expectations. Further accommodations by the BoE are widely anticipated.

As for Japan, BoJ governor nominee Haruhiko Kuroda indicated during a confirmation hearing on Monday that he would be very aggressive in attempting to end deflation. "It would be natural for the BOJ to buy longer-dated government bonds in huge amounts," Kuroda said. He seemed impatient to get on with it, worrying that "there's a risk that these market moves will unwind."

Presumably he was referring to the recent sharp declines in the yen and rise in the Japanese stock market. "There's evidence that currencies tend to fall for countries that ease monetary policy on a large scale ... But the BOJ's policy is not targeting currencies," Kuroda noted according to a Reuters article. Yes, yes, yen debasement is just an unintentional byproduct of their deflation fighting...

Meanwhile, the Fed's vice chairman Janet Yellen reiterated her conviction that "highly accommodative monetary policy" remains warranted in a speech this morning at the National Association for Business Economics Policy Conference. "I do not see any [costs] that would cause me to advocate a curtailment of our purchase program," said Yellen in response to concerns expressed within the FOMC recently.

As we noted in commentary last week, David Rosenberg of Gluskin Sheff doesn't see unemployment dropping to 6.5% until 2018, so he expects the Fed will maintain über-accommodative policy for at least five more years. Saumil Parikh of PIMCO suggests that "we expect the secular real policy rate to average -1% per annum for the next decade, and if there are no major changes to our assumptions beyond that, to actually fall gradually towards -1.25% by 2030."

Negative real rates until 2030? We are indeed going the way of Japan, potentially queuing up our own series of lost decades.

As Michael Hewson of CMC Markets reminded us in a Reuters Insider interview this morning, while gold has been under pressure in dollar terms of late, it has been rising in value over the past 6-8 weeks "against Sterling, against the euro and to a lesser extent against the yen."

PIMCO's Bill Gross suggested last week that investors "sell the currencies of serial QE offenders." Given that the Fed currently has a balance sheet in excess of $3 trillion, which is expected to reach nearly $4 trillion by year-end, the U.S. central bank certainly qualifies as a serial offender. I shudder to think what that balance sheet might look like by 2018, let alone 2030.

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.

Gold dealers index of gold coin images - popular investments

USAGOLD Bulletin Board

"There is much wisdom between the covers of this book."

Practical guidelines for adding gold to your portfolio from the founder of USAGOLD - forty years in the business.

Seven reasons
high-net worth gold
investors choose
USAGOLD

Precious Metals Trading and Storage Program
Competition for the ETFs
with a delivery option

P.O. Box 460009
Denver, Colorado 80246-0009

1-800-869-5115 (US)
00-800-8720-8720 (EU)

303-399-6759 (Fax)

[email protected]

Office Hours

6:00am - 7:00pm
(U.S. Mountain Time)
Monday - Friday

American Numismatic Association
Member since 1975

Industry Council for Tangible Assets

zero complaints

Tuesday March 5
website support: [email protected]
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

Daily Gold Market Report

Serial QE Offenders Continue to Offend