Gold down almost 1.5 pct as selling snowballs (Reuters)
JPMorgan lobbied CFTC a day after losses revealed (Reuters)
U.S. Recovery Hits Home (WSJ)
Largest Greek Banks to Receive Financing (NY Times)
by John Foster. Email John.
Silver Lining in Gold’s Fall:
While gold finished this week down nearly 2% there looks to be some Good news for Gold pricesas a survey conducted by Bloomberg showed that 14 of 32 analysts anticipate prices to gain next week. The Gold price is currently being affected by the political uproar in Europe, which is pushing the euro down, and positive American economic news, which is strengthening the doll
ar. “When the market gets very nervous, then they buy dollars, and Gold finds it difficult to rally,” said Jesper Dannesboe, an analyst at Societe Generale SA in London. “Given what’s going on in the markets at the moment, any rally will probably just be a bounce before another setback.” One hedge fund manager is predicting tough times ahead for stocks, which could be positive for gold and silver, considering the negative correlation the metals historically hold to stocks. Referring to the Federal Reserve’s “Operation Twist,” he says that “the Fed has effectively found a way to keep long-term interest rates low … and cleverly engineered another bull rally (for stocks). … The U.S.A. will have to start dealing with issues that some market participants refer to as Taxmageddon.” “Taxmageddon” is the term being given to the coming months before the U.S.A. presidential election, when many decisions on tax breaks are due. Continue reading