Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Market Update GoldCore 5 July 2013

Market Update GoldCore

BOE/ECB At 0.5% - Negative Real Interest Rates Continue, Inflation Rising

Today’s AM fix was USD 1,249.50, EUR 961.15 and GBP 819.67 per ounce.
Yesterday’s AM fix was USD 1,246.00, EUR 962.16 and GBP 818.28 per ounce.

Gold rose $10.70 or 0.86% yesterday and closed at $1,252.90/oz. Silver surged to $19.905 and finished up 2.38% at $19.80/oz. The U.S. markets are closed for their Independence Day holiday today.

Gold was tentatively higher overnight on worries about the revolution in Egypt which ended with President Mursi ousted. They crept lower prior to the BOE and ECB rate decisions but gold rose in sterling terms after the BOE decision to keep rates at 0.5%.

Carney, the new Bank of England governor, kept interest rates at historically record low levels at 0.5% and the pound fell after the announcement and was down 1% to £828/oz soon after.

Click for big version.

Draghi, emulated his fellow Goldman Sachs banker, Carney and kept rates at 0.5%.

Ultra loose monetary policies involving record low base rates have been in place in the UK since March 2009, a lengthy four and a half years. In the Eurozone 0.5% record low rates have been seen since May this year.
Since 1694 and the ensuing three centuries’ of Bank of England history, the base rate has never been this low.

German and ECB base rates have never been this low.

UK and western government bond yields remain near record lows only because western governments and their central banks are manipulating their bond markets by electronically creating currency in order to buy their own debt.

Click for big version.

German Interest Rates and Inflation (1975-2013)

U.K. inflation accelerated more than economists forecast in May rising to 2.7% (CPI) due to rising energy costs. Britons face a persisting squeeze in living costs as they endure inflation triple the rate of basic pay growth, which was 0.9% in the three months through April.

Transport provided the biggest upward pressure on the inflation rate in May, as air transport and motor fuel rose from a year earlier. Air fares soared 22% from April, a record for the month of May. Higher clothing and footwear costs also stoked consumer prices.

Citizens throughout the EU are feeling the pinch in their pocket due to rising costs and many believe that inflation is higher than the statisticians in government departments are calculating.

Negative real interest rates and continuing money printing and QE will lead to inflation. The question is not if but rather when. They will support gold and lead to a lower fiat currencies versus gold in the long term.

News From Around The World

Faber: "We Are Approaching A Low In Gold"   Economic Times

HSBC's Steel Says Gold At $1,400/oz By Year End   Bloomberg

Greatest Threat to the U.S. Economy and One Easy Way to Protect Yourself   The Gold Report

Download Comprehensive Guide To Investing In Gold

Everything you need to know about investing in gold. This complimentary ebook is a must have for anyone thinking of investing in gold.

In this ebook you will find out about:
• Owning Gold
• The Investment Pyramid
• The Instruments of Gold Ownership
• How to Buy Gold
• Dangers of Digital or e-Gold
• The Difference Between Physical Gold and Paper Gold


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news