Gold price tumbles on reports of de-escalating Middle East tensions
Gold plunged 3% after Axios reported that Israel and Lebanon have accepted the terms of a ceasefire agreement.
Gold Continues To Glitter….
This week the Gold has rallied to another All-time high as global investors continue to choose gold as their currency of choice. Savvy investors are seeking tangible assets for long term investment opportunities as they have lost faith and confidence in the fiat currencies.
We have once again received mixed news and reports from the European Union that has left investors trying to decipher the content which appears to be as clear as mud. For instance Monday we reported that 18 of the 19 industries in the STOXX Europe 600 index rose as industrial production increased greater than analysts predicted in April. Later in Monday’s session we learned that Moody’s Investor Service downgraded Greece’s government bond ratings to junk status.
On Tuesday it was reported that Moody’s further downgraded several Greek Banks as these actions rekindled the gold rally as physical bullion buying increased. We certainly now realized that the continuation of the Euro regions debt crisis was far from over…
Wednesday was yet another day of bad news for the Euro region as rumors and denials were flying… A Spanish financial journal (El Economista) reported that Spain was involved in a secret meeting with The European Union and the IMF and the U.S Treasury seeking a credit line of 250 Billion Euro’s….All parties denied this happen…. However we do know that the EU and the IMF are putting some type of aid package together for Spain… We also learned that European Central Bank Member Nout Wellnik stated “the Netherlands should take firm Measures as quickly as possible as their economic situation Is quite serious.” This is the first I have learned of the crisis In the Netherlands…All of this news has been very Gold friendly…. The continued uncertainty has chased investors into safer havens and during times of crisis, Gold and Silver usually retain value better than most commodities….
Today the leaders from the European Union attempted to ease investor’s minds as they released information that showed how Banks perform on stress tests, and seeking to gain investor confidence in Euro regions financial system… German Chancellor Angela Merkel stated “what’s most important right now is that we have maximum transparency”…..
Transparency would certainly be refreshing….
Meanwhile as I write Gold has traded as high as $1252.80… ANOTHER ALL-TIME HIGH…….
Jobless Claims
In the week ending June 12, the advance figure for seasonally adjusted initial claims was 472,000, an increase of 12,000 from the previous week’s revised figure of 460,000.. Obviously this needs to become priority # 1….
We need to get people back working and spending again….
The continuing global Geo-political tension has also helped the Gold markets latest rally as a warring environment is Normally “bullish” gold as investors tend to choose safer havens….
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