The European currency suffers from a lack of confidence relative to the dollar and confidence is falling in both the dollar and the euro. Euro-zone M3 has also grown at a healthy pace – reaching €10 trillion in Q3 2012 and doubling since 2001.
Gold edged up today, on investor expectations for continued strength in the yellow metal linked to recent “stimulus” packages employed by central banks globally.
With all major central banks now engaged in some form of QE, we now have “QE Everywhere.”
Spot market gold bullion prices traded around $1,765 an ounce Tuesday morning in London, 1.8% off last Friday's seven-month high. Stock markets were also broadly flat as major government bond prices gained, while the euro recovered early losses.
Commodities corrected narrowly higher overnight after yesterday’s broad-based selloff. The spotlight turns to September’s US consumer confidence reading and the Richmond Federal Reserve manufacturing index.
We’re all aboard a roller-coaster ride, and it may continue for some time yet. We are living through a truly unique moment in financial history. The forces of inflationary stimulation are doing battle with the financial system’s apparent desire for debt destruction and deflation.
Gold and silver have been performing like they both have something to prove. While some may be quick to label their rise as a comeback story, investors should keep in mind that the safe-havens never truly lost their glitter.
China has kept investors on the edge of their seats, as we wait for some monetary or fiscal action. Every day that goes by with no significant policy decisions from the Asian giant causes the market to lose confidence in its ability to steer its ship.
Turkey’s gold imports were 11.3 metric tons last month alone. Silver imports were 6.7 tons, the data show. Much of these imports may be destined for Iran where imports have surged an astonishing 2,700% in just one year – from $21 million to $6.2 billion.
US dollar gold prices traded around $1,730 an ounce during Tuesday morning's London session, broadly in line with where they started the week, while European stock markets ticked lower and longer-dated US Treasuries dipped.