"Gold prices fell in Asia and in Europe this morning with profit taking after
last week’s 4.3% gains seems the primary reason for today’s weakness.
However, gold prices are likely to continue to be supported by the continuing Greek debt saga (and risk of contagion) and developments in the increasingly tense situation with Iran (and the risk of war).
Iran
US President Obama, signed a law on December 31st that seeks to penalize countries that import Iran's oil or transact with the Islamic Republic's Central Bank. Europe has also imposed sanctions on Iran's oil imports from July 2012. Measures also include an immediate ban of all new oil contracts with Iran and a freeze on the assets of the country's central bank within the EU, due to their nuclear program.
Gold Spot Dollar/oz – 5 Days
(Bloomberg)
India has had friendly relations with Iran for years and will now find itself in a mire of political manoeuvring . It wishes to keep relations on a good footing with the US and Europe but has the dilemma of being dependent on oil from Iran and other countries.
EU
These tensions plus the decline of the dollar’s value has strengthened gold in the past month.
European leaders are meeting today in Brussels about jobs and economic growth but the Greek debt situation may again dominate.
As long as the failed panacea of recent years - to print and electronically create money and pile more debt upon already massive levels of debt – continues to be seen as the solution – gold’s foundations remain very secure.
XAU-EUR Exchange Rate – 5 Days
(Bloomberg)
Only the massive writing down of and forgiveness of debt and massive deleveraging in the banking system can help ameliorate the European and global debt crisis.
China
Xinhua, the official press agency of the government of the People's Republic of China reports that a "gold rush" swept through China during the week-long Lunar New Year holiday this year, with demand for precious metals and jewelry surging since the Year of the Dragon began.
Data released by China's Beijing Municipal Commission of Commerce shows a 49.7% increase in sales volume for precious metals jewelry and bullion during the week-long holiday (over last year), which lasted from January 22 to 28 over that of last year's Spring Festival..."
at http://www.zerohedge.com/news/chinese-gold-rush-year-dragon-first-week-sees-record-sales%E2%80%93-497
However, gold prices are likely to continue to be supported by the continuing Greek debt saga (and risk of contagion) and developments in the increasingly tense situation with Iran (and the risk of war).
Iran
US President Obama, signed a law on December 31st that seeks to penalize countries that import Iran's oil or transact with the Islamic Republic's Central Bank. Europe has also imposed sanctions on Iran's oil imports from July 2012. Measures also include an immediate ban of all new oil contracts with Iran and a freeze on the assets of the country's central bank within the EU, due to their nuclear program.
Gold Spot Dollar/oz – 5 Days
(Bloomberg)India has had friendly relations with Iran for years and will now find itself in a mire of political manoeuvring . It wishes to keep relations on a good footing with the US and Europe but has the dilemma of being dependent on oil from Iran and other countries.
EU
These tensions plus the decline of the dollar’s value has strengthened gold in the past month.
European leaders are meeting today in Brussels about jobs and economic growth but the Greek debt situation may again dominate.
As long as the failed panacea of recent years - to print and electronically create money and pile more debt upon already massive levels of debt – continues to be seen as the solution – gold’s foundations remain very secure.
XAU-EUR Exchange Rate – 5 Days
(Bloomberg) Only the massive writing down of and forgiveness of debt and massive deleveraging in the banking system can help ameliorate the European and global debt crisis.
China
Xinhua, the official press agency of the government of the People's Republic of China reports that a "gold rush" swept through China during the week-long Lunar New Year holiday this year, with demand for precious metals and jewelry surging since the Year of the Dragon began.
Data released by China's Beijing Municipal Commission of Commerce shows a 49.7% increase in sales volume for precious metals jewelry and bullion during the week-long holiday (over last year), which lasted from January 22 to 28 over that of last year's Spring Festival..."
at http://www.zerohedge.com/news/chinese-gold-rush-year-dragon-first-week-sees-record-sales%E2%80%93-497
