The Gold Economy

Investors return and push precious metals higher

This week saw the gold price strengthening, as investors took on board the implications of the deal thrashed out between the Finance Ministers and Leaders of the Eurozone countries. This deal will see the EFSF increased to €1 trillion, the banks recapitalised by €108 billion, and those creditor banks to Greece required to write down those debts by 50%.

The deal goes further than many market observers believed it would, but after the euphoria of finally seeing the… Continue reading

Gold gained 1.5 per cent on Thursday for the fifth straight trading day to attain $1,750 per ounce on major commodity markets around the world as investors saw the European debt deal as a positive tone towards easing the region’s debt burden.

The EU deal provides for banks to waive 50 per cent of Greece’s debt burden in order to make the outstanding loan manageable for the financially troubled EU nation and the Eurozone leaders have also agreed to an expanded bailout measures for the region in addition to recapitalizing the region’s hard-hit banks. This EU… Continue reading

In a bid to regain its safe haven status, gold attain one-month highs in major markets around the world on Wednesday as it rose above $1,700 per ounce in the wake of increased demand for the yellow metal occasioned by apparent delay in resolving the debt burdens hanging on many countries in the Eurozone and the US consumer data that reveals consumers’ positive sentiment.

Gold seems to be regaining its traditional role as a safe haven from wealth erosion and as a contrarian gauge after plunging as much as 20 per cent of its $1,923.70 per… Continue reading

Gold traded steadily lower during the first four days of the week, though it did recover some poise on Friday as investors came back into the market ahead of the weekend’s meeting of European Finance Ministers. Having fallen from last week’s closing level of $1680.3 down to test $1605, a drop of over 4%, cash gold rallied on Friday to end the week at $1641.8. Though down on the week by some 2.3%, the rally of more than 2% on Friday is, perhaps, a… Continue reading