"Gold prices have risen in all major currencies due to safe haven demand for bullion on concerns that the debt crisis in Greece, Italy and much of the Eurozone may lead to contagion in markets.
Italian 10 yr government bond yields have surged to 6.61% and saw an inter day high of 6.676% which has contributed to sell offs in European stock indices which followed their Asian counterparts lower.
The ‘safe haven’ Swiss franc has fallen sharply against all currencies including the euro and especially against gold. Gold in Swiss francs has surged 2.4% - from CHF 1,556 to 1,590.
Germany Economy Minister Philipp Roesler said on Monday that the German people's gold reserves cannot be touched and “must remain off limits."
"German gold reserves must remain untouchable," said Roesler, who is head of the Free Democrats (FDP), a partner in Chancellor Angela Merkel's coalition.
Roesler added his voice to opposition to an idea proposed at the G20 summit of using reserves including gold as collateral for the euro zone bailout funds.
The Bundesbank and Mr. Seibert, spokesman for Merkel, said Sunday that they too ruled out the idea discussed at the summit of Group of 20 leading economies last week.
Mr. Seibert dismissed media reports yesterday that the plan to boost bailout funds, to aid Italy or another large euro zone country, would require Germany to sell off part of its gold and foreign exchange reserves.
“Germany’s gold and foreign exchange reserves, administered by the Bundesbank, were not at any point up for discussion at the G20 summit in Cannes,” he said.
Mr. Seibert was responding to proposals to sell about €15 billion of Germany’s gold reserves of over 3,000 metric tonnes, worth a reported €139 billion.
A Bundesbank spokesperson said it was aware of the plan and said the institution “rejected” plans to touch federal reserves.
The Sunday Frankfurter Allgemeine newspaper said the initiative marked a fresh round in an ongoing struggle between the Bundesbank and the Merkel administration over reserves the bank manages on behalf of the German people.
The Irish Times reports that today’s finance ministers’ discussion is part of a wider strategy by the ECB to sound out the possibility of gaining control over the gold reserves of the euro zone’s central banks..."
at http://www.marketoracle.co.uk/Article31419.html
Italian 10 yr government bond yields have surged to 6.61% and saw an inter day high of 6.676% which has contributed to sell offs in European stock indices which followed their Asian counterparts lower.
The ‘safe haven’ Swiss franc has fallen sharply against all currencies including the euro and especially against gold. Gold in Swiss francs has surged 2.4% - from CHF 1,556 to 1,590.
Germany has rejected proposals by France, Britain and the US to have German gold reserves used as collateral for the Eurozone bailout fund.
Germany Economy Minister Philipp Roesler said on Monday that the German people's gold reserves cannot be touched and “must remain off limits."
"German gold reserves must remain untouchable," said Roesler, who is head of the Free Democrats (FDP), a partner in Chancellor Angela Merkel's coalition.
Roesler added his voice to opposition to an idea proposed at the G20 summit of using reserves including gold as collateral for the euro zone bailout funds.
The Bundesbank and Mr. Seibert, spokesman for Merkel, said Sunday that they too ruled out the idea discussed at the summit of Group of 20 leading economies last week.
Mr. Seibert dismissed media reports yesterday that the plan to boost bailout funds, to aid Italy or another large euro zone country, would require Germany to sell off part of its gold and foreign exchange reserves.
“Germany’s gold and foreign exchange reserves, administered by the Bundesbank, were not at any point up for discussion at the G20 summit in Cannes,” he said.
Mr. Seibert was responding to proposals to sell about €15 billion of Germany’s gold reserves of over 3,000 metric tonnes, worth a reported €139 billion.
A Bundesbank spokesperson said it was aware of the plan and said the institution “rejected” plans to touch federal reserves.
The Sunday Frankfurter Allgemeine newspaper said the initiative marked a fresh round in an ongoing struggle between the Bundesbank and the Merkel administration over reserves the bank manages on behalf of the German people.
The Irish Times reports that today’s finance ministers’ discussion is part of a wider strategy by the ECB to sound out the possibility of gaining control over the gold reserves of the euro zone’s central banks..."
at http://www.marketoracle.co.uk/Article31419.html
