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Gold Rebounds to 2-Week Highsby Peter A. Grant
Mar 12, AM 
Gold jumped to a two week high in overseas trading on Tuesday, bolstered by reportedly strong physical interest in Asia and heightened growth risks in the UK and Europe. The yellow metal neared the $1600 level intraday, before easing modestly.UK industrial production and manufacturing production for January came in much weaker than expected, raising the chances that the BoE will have to act. Meanwhile, Bundesbank President Jens Weidmann cautioned that the crisis in Europe "is not over despite the recent calm on financial markets." Weidmann continues to fret about the risky moves of the ECB, but in acknowledging the "declining inflation risks" in the eurozone he may have (perhaps inadvertently) given the nod to additional accommodations. Pimco's Bill Gross tweeted this: Gross: ECB should ease shortly. Euro needs to decline to support peripheral countries.As we noted yesterday, the BoJ under Haruhiko Kuroda would apparently consider buying derivatives as part of its QE program. While that seems absolutely crazy, it's worth remembering that the Fed has a boat load of credit default swaps and interest rate swaps on its balance sheet. If derivatives are good enough for the Fed, why shouldn't the BoJ consider them as well? Perpetual easy money and QEternity: A recipe to reinvigorate the underlying bull trend in 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. |
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Tuesday March 12
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