The Gold Economy

A quiet week, full of news, ends with gold subdued

Trading volumes were thin through the week as the year draws to a close. Price volatility saw the price of gold bounce from recent lows to as high as $1640, before retreating to $1606 by Friday.

The week’s initial rise was provoked by the death of North Korea’s leader, Kim Jong Il, and concerns over the political stability of the region moving forward. The rallying gold price was maintained through the week as the Eurozone… Continue reading

Is Gold Being Sold To Pay For Sovereign Debt?

Bears of the yellow metal had the upper hand this week, as prices eroded from last week’s closing price to post a fall of 6.5%, closing at 1598.45 on Friday.

ETF’s were hit too, as net outflows hit record levels during the week. On Thursday, the SPDR Gold Trust (GLD) saw gold bullion stocks held to back shares fall to 1280 tonnes. The 15 tonne decrease on the day was the largest downward movement since August… Continue reading

Gold Retreats as Eurozone Members Come to Debt Agreement

After last weeks gains, gold investors remained cautious ahead of the Eurozone summit on Wednesday night. Though some profit taking was seen through Monday and Tuesday morning, losses had all but been reversed as a lack of news from the summit caused a little nervousness in the middle of the week.

However, when the news did break, it was seen as broadly positive for investment markets and negative for the precious metals as money… Continue reading

The price of gold got a boost today in trading when the news filtered out that the Eurozone leaders, at their crucial meeting in Brussels, had reached an agreement on adopting more stringent fiscal principles for the Eurozone in a bid to resolve the debt crisis which has been affecting the continent for the past two years.

The euro gained in trading today against the US dollar which helped gold to appreciate in price but some analysts have observed that at 0.7 per cent price gain at which the yellow metal inched up early today, gold… Continue reading