Gold price set a new record high today

Gold price is coming to its record high today

In brief: Gold price climbs to the peak and restarts the new marathon of growth.

Gold price set a new record against continuing fears over the economic outlook in Europe on Friday, 18 June. As a result of the regular trading session on the New York Mercantile Exchange, NYMEX, the August futures for gold delivery have risen by 0,8% to $ 1,258.30 per troy ounce.

In the markets feel the strain caused by the situation in Europe. Two years after the beginning of the banking crisis, financial institutions in several countries may once again find themselves in a difficult situation. Said on Friday the newspaper Frankfurter Allgemeine Zeitung, EU Commissioner for Competition Joaquin Almunia. According to him, the difficulties experienced by some banks in Greece and Spain. About exactly what the financial institutions involved, Almunia did not specify. It is possible that the Greek Government will have to take additional measures to support banks, says the commissioner said. This may be used part of a package of financial assistance allocated to Athens eurozone countries. At the same time, Almunia refuted in a number of media reports that the EU is preparing a package to support some Spanish banks experiencing difficulties. In his opinion, it is sufficient measures taken by the Government in Madrid.

The economic outlook is extremely uncertain of France, given the turmoil in European markets, sovereign debt and challenging agenda on reforming fiscal country has entered into the commission of the International Monetary Fund (IMF). If persistent fears about sovereign risks in the eurozone will not be shattered, “they probably will continue to have a negative impact on the activity, putting pressure on bank lending, and suppressing demand in France and in countries which are its major trading partners , according to the IMF.

Compared with other European countries, France has substantial restrictions on the labor market and goods, which restrict competition and growth.

One hundred and Italian economists in an open letter warned that the regime of austerity imposed by the EU countries of southern Europe, may push the region into a vicious cycle that threatens the collapse of the eurozone.

The letter writers accused the EU and leading the government for not understanding modern economic thinking. They note that individual countries could withdraw from the financial union, to stop the destruction of jobs.

Credit rating agency Fitch Ratings warned that the European Central Bank should begin a large-scale acquisition of assets, to prevent the defection of the debt crisis in Europe out of control.

Director of the International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn said that the problems in the global economy persist, while governments are increasingly turning effort to resolve internal issues and budgetary problems, while the activity aimed at reforming the financial sector, slows.

All this has a negative impact on investor sentiment, and they prefer to invest in safe assets.

Although there are positive signals, which are now not able to fundamentally affect care in a calm harbor.

The last auction in Spain, which has proved successful forecasts, helped quell fears that the country would delay a worsening spiral situation similar to that which was Greece. However, investors remain wary of the receipt of new negative messages.

In addition, the European Union will publish the results of so-called “stress test” in the coming weeks. At the same time, analysts say the German land banks may become one of the weakest.

EU leaders agreed on Thursday to publish the test results no later than the second half of July, after the governor of the Bank of Spain said that he would publish the results of tests of Spanish banks right now, if no agreement on this issue and will not be achieved. These tests are designed to assess whether there is sufficient strong balance sheets of banks to cope with a possible sharp deterioration in the economy of Europe.

Germany’s Chancellor Angela Merkel said on Thursday that the publication of stress tests of banks of all countries of the European Union, is an important step towards something to show the market desire for full transparency. Merkel added that each of the EU will also push for banking fee in the event of future financial crises and the tax on financial transactions in one form or another. In addition, global companies increasingly argue for the restoration of a favorable economic climate in Europe, despite problems with budget deficits of some countries of the continent. Representatives of FedEx Express, Texas Instruments Inc., Altera Corp., Mastercard Inc. and several other major companies in recent days announced that consumer activity in the region has not changed for the worse and the volume of trade remained stable. Investors are signaling that the worst for the region may already be behind us. Conducted Bank of America Merrill Lynch in June, a survey 207 managers of investment funds that manage a total capital of $ 606 billion, showed an improvement in sentiment in Europe after the fall of this index in May. The July futures for delivery of silver went up by 2.2% to $ 19.18 per ounce. Platinum to be delivered in July increased by 1% up to $ 1,587 per ounce. The July futures for delivery of copper have fallen in price on 0,7% to $ 2.88 per pound.

Anrey Torbinski
2010-06-19 03:10, Commodities.

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