Both the dollar and the euro are under pressure again today and gold has reached another new record nominal high of $1,625.70/oz in early European trading. European indices are marginally lower after a mixed performance in Asia.
Gold prices drifted down to around $1,543 per ounce Tuesday morning in London - just below where they started the week - while stocks and commodities took a hammering as concerns grew over Italian government debt.
The gold price surged to $1,550 per ounce in London - up 4.2% from the start of last week - while stocks and commodities fell and US Treasury bonds gained after the European Council called a crisis meeting to discuss Italy's sovereign debt.
A GM bailout would delay restructuring and ultimately destroy jobs. Restructuring under Chapter 11 is the best solution, but credit market conditions require the U.S. government to provide transitional, "Debtor in Possession" financing. To avoid political interference, the actual lending decisions should be made by a commercial bank with a stake in the outcome.