The wholesale-market gold price leapt more than 1%, setting three-week highs above $1620 per ounce after European Central Bank chief Mario Draghi said "The ECB is ready to do whatever it takes to preserve" the single euro currency.
Shareholders of the London Metal Exchange voted in two venues on Wednesday to approve a £1,388 million ($2.15 billion) takeover bid by the Hong Kong Exchanges & Clearing Ltd., ending 10 months of debate on the sale of the exchange.
Research just out from the World Gold Council, titled “Gold as a Strategic Asset for UK Investors,” adds to the evidence that gold investing adds diversification to a portfolio like nothing else. This research argues that gold is the ultimate diversifier.
Commodity prices are on the upswing amid a broad-based recovery in risk appetite after second-quarter Chinese GDP figures printed broadly in line with expectations overnight. The result was received as net-neutral for sentiment.
We note the contrast between the reporting companies who by law cannot lie about their fiscal realities, versus central planners who admit that they must lie to preserve calm and control. We'll leave it to you to decide whose version of the truth you want to believe.
Gold may have its worst week in 2012 as it is currently down 3.5% for the week in dollar terms and nearly 3% in euro and pound terms. However, gold is still higher so far in June and the fundamentals suggest we have bottomed.
Following negative data last week, investors were clearly concerned about global growth and anxiously anticipated government actions. While Europe and the US disappointed investors, China surprised on the upside by cutting interest rates.
The powers that be have total control over money, as they set the price for capital via manipulating the interest rates. So it is not a stretch that they would be concerned with a rising gold price because gold is a threat to how the current fiat regime functions.