Gold breezes past $1,400 to hit new record
Gold began floor trading in the red, losing as much as $10 from Friday’s settlement close as the dollar rose.
The metal rapidly pared its losses, however, as renewed worries about Europe’s debt woes took center stage.
The cost of insuring Irish debt against default climbed to a new record Monday, and the cost of insuring Portuguese debt also widened to a record.
Read more about Portuguese and Irish CDS
The metal hit 17 record highs in less than five weeks in September and October.
The latest string of records came after the Federal Reserve’s decision to embark on a fresh round of bond buying, of an additional $600 billion over eight months. This has given investors a fresh reason to sell the dollar.
The euro weakened as bonds from Greece, Ireland and Portugal came under pressure — a flare-up of the sovereign-debt problems Europe has faced for much of the year, giving gold the catalyst it needed to rally even as the dollar continued to strengthen.
See more on how dollar rises as debt fears weigh on euro.
Robert Zoellick, president of the World Bank, said in a Financial Times op-ed piece that leading economies should consider “employing gold as an international reference point of market expectations about inflation, deflation and future currency values.
Read more at www.marketwatch.com
“The gold standard is not going to happen anytime soon,” he said. To pull off something as daunting and complicated in the modern-day financial world would require a concerted political will that just isn’t there, O’Neill added.
Niciun comentariu:
Trimiteți un comentariu