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January Gold News 2015


Gold slips under $1,300 despite the Feds patient tone

Gold slips under $1,300 despite the Feds patient tone

The gold price has fallen below the key psychological $1,300 barrier despite the Federal Reserve’s latest statement.

Yesterday the Federal Open Market Committee indicated they are unlikely to raise interest rates in the near term. Some city analysts are now forecasting interest rates will not increase until the third quarter. While many gold experts believe the Fed can’t normalise rates without choking off any recovery and increasing the cost of U.S. government debt which now stands at over $18 trillion.

The markets are looking ahead to the release of the U.S unemployment and housing data. Whilst in the eurozone Germany ...

Gold steady ahead of Fed meeting

Gold steady ahead of Fed meeting

The gold price continues to trade in a tight channel near $1,290 per ounce as traders turn their focus to the Federal Reserve’s latest two day policy meeting.

Traders are starting to anticipate the slowdown in the global economy will result in the Federal Reserve delaying an interest rise. The Fed originally signalled they would be prepared to raise interest rates in June and any extension on this time frame should boost the gold price.

The Fed will announce their latest policy statement at 2pm Eastern time.

The gold price is currently trading at $1,288.03 per ounce down slightly from ...

Holland and Russia increase their gold reserves

Holland and Russia increase their gold reserves

The Netherlands added to their official gold reserves in December for the first time in 16 years.  Russia also increased their gold holdings for the ninth consecutive month according to the International Monetary Fund’s latest statistics.

The Netherlands purchased 9.61 tonnes to 622.08 tonnes making their total reserves the ninth largest in the world.  The purchases come only a month after the Dutch successfully repatriated 120 tonnes of gold from New York Fed.

Despite the Russian rouble falling and the economy contracting following the sudden fall in the oil price Russia purchased a further 20.73 tonnes in December to make ...

7 potential outcomes if Greece defaults and leaves the EU

7 potential outcomes if Greece defaults and leaves the EU

Meltdown

Living standards would fall drastically, the costs of imports would surge and banks may face the prospect of collapse.

Bank Runs

Greeks may withdraw their savings prior to their euros being converted into a new currency which would be worth less. To protect their capital banks may stop all withdrawals.

Sovereign debt crisis

International investors could become nervous about leading to other highly indebted nations such as Spain, Portugal and France.

Market turmoil

In the event Greece exited the Eurozone lenders, and traders may be forced to sell their risky assets causing a stock market crash.

Political Backlash

Banks ...

Gold falls on dollar strength following Greek election

Gold falls on dollar strength following Greek election

The gold price failed to hold onto last week’s gains as a strengthening U.S. dollar offset safe haven buying following Syriza’s win in the Greek election.

Syriza, the anti-bailout party comfortably won yesterday’s election raising fears the Greeks could decide to default on its 240 billion euro bailout. Syriza lead by leftist leader Alexis Tsipras campaigned on the promise he would renegotiate the bailouts imposed on the country by the European Union and the International Monetary Fund.

A number of senior European politicians have warned Tsipras that Greece must respect the terms and conditions of the bailout. If Greece does ...

 £200 million of gold discovered in Scottish hills

£200 million of gold discovered in Scottish hills

The small Scottish village of Tyndrum is bracing itself for a gold rush after £200 million of gold was discovered in the nearby hills. The village which is more famous for its tourist tea shops, is believed to have more gold than previously thought.

Gold was first discovered in the area in 1990 but due to the lower gold price was never developed. The mine is owned by Australian firm Scotgold Resources and if put into operation would be the first commercial mine in Scotland.

With gold now trading over £850 per ounce, the firm is now evaluating how best ...

As expected ECB announce massive QE program

As expected ECB announce massive QE program

As expected the European Central Bank (ECB) announced they would pump 1.1 trillion euros into the financial markets in an attempt to stimulate the failing Eurozone economy.

President of the ECB, Mario Draghi, confirmed the bank will inject 60bn euros a month into the financial system until at least September next year.

The newly printed money will be used to buy government debt in the hope it will boost confidence, raise inflation and lower the value of the euro against its major trading partners. Following the announcement the gold rose above $1,300 as trading volumes in New York surged.

The ...

 Greece by Numbers

Greece by Numbers

The Greek economy has contracted by 25% since the start of 2008 economic crises.

25.8% of the population are officially unemployed.

23.1% of Greeks are living at risk of poverty.

The equivalent of £91bn has flowed out of the Greek banking system in the last 5 years.

The Greek stockmarket has fallen 83.9% since 2008.

100,000 scientists have left Greece to work abroad.

The amount of tax paid by employees and pensioners has risen by a factor of 7 since 2009.

ECB expected to launch $1 trillion QE program

ECB expected to launch $1 trillion QE program

The European Central Bank (ECB) is set announce a $1 trillion quantitative easing program later today in an attempt to stop the 19 member Eurozone spiralling into a deep recession. The ECB is expected to purchase up to 50 billion euros of government debt every month until the end of 2016.

Quantitative easing will involve the ECB electronically creating new money to purchase government debt in an attempt to stimulate the European economy and lower yields on sovereign debt. By lowering the cost of borrowing the ECB is hoping banks will be encouraged to lend, which in turn will stimulate ...

Gold breaks through $1,300 per ounce

Gold breaks through $1,300 per ounce

The gold price has broken though £1,300 per ounce for the first time since August as speculation that Central Banks will respond to the slowdown in the world economy with fresh stimulus measures. Policy makers in both Asia and Europe are struggling to stop deflation taking hold and are under increasing pressure to respond.

Following two disappointing years for the yellow metal, investors are returning to gold as concerns rise the U.S economy will not be able to offset weaker growth in Europe and emerging economies.

Uncertainty over Sunday’s Greek election and expectations the ECB will announce a new stimulus ...

Russia continues to hoard gold and sell U.S. treasuries

Russia continues to hoard gold and sell U.S. treasuries

The rumours that Russia was selling gold to protect the falling rouble were not only exaggerated but entirely false. Rather than selling gold Russia actually increased their gold holdings in the final six months of 2014.

Russia continues to reduce their exposure to U.S treasuries as tensions between the two superpowers over the Ukraine continue. Russia has now reduced its exposure to U.S. debt for 20th months in a row. It would appear that Russia is converting their fiat based paper assets into real assets.

Gold breaks through £850 per ounce as ETF’s experience inflows

Gold breaks through £850 per ounce as ETF’s experience inflows

The gold price has broken through £850 per ounce as investors seek safe havens following the Swiss Central Banks decision to remove the euro franc currency peg. Uncertainty over Sunday’s election in Greece, where the anti-bailout party Syriza heads the polls, is also adding to the uncertainly in markets.

Investors are also waiting for Thursday’s announcement from the ECB, which could see them implementing a full blown quantitative easing program. Any program which results in the ECB expanding its balance sheet via money printing should further boost the gold price.

The majority of the world’s largest gold backed exchange traded ...

German Central Bank steps up repatriation

German Central Bank steps up repatriation

The Bundesbank has confirmed it has stepped up the process of repatriating its gold stored in New York and Paris.

In 2014 the German Central Bank successfully repatriated 35 tonnes of gold from Paris and a further 85 tonnes from New York.  According to the World Gold Councils latest figures Germany’s gold reserves of 3,384.2 tonnes are the second largest in the world.  For historical reasons the majority of Germany’s gold is vaulted overseas.

Following Germany’s economic revival after World War Two the German Central Bank swapped the U.S. dollars they accumulated through trade for gold bullion vaulted in New ...

Swiss Central Bank lights fire under the gold price

Swiss Central Bank lights fire under the gold price

The gold price surged 2.5% yesterday after the Swiss National Bank surprised the markets by abandoning the Swiss franc’s cap against the euro. The announcement sent shockwaves across the globe with investors diverting money from national currencies into gold bullion.

The gold price soared $32.70 to a high of $1,267.20 per ounce as trading volumes nearly doubled. By lunchtime on the New York Mercantile Exchange 23.7 million ounces had changed hands. The Swiss franc at one point jumped nearly 30% against the euro.

The SNB also cut the interest rate paid on certain deposits to minus 0.75%.

The announcement comes ...

Lawyer gives ECB green light to start money printing

Lawyer gives ECB green light to start money printing

A leading European Union lawyer has confirmed the ECB can legally buy Eurozone sovereign debt in a process commonly known as quantitative easing.

The advocate general to the European Court of Justice, Pedro Cruz Villalon, confirmed the bond buying program designed in 2012, does not violate EU law. The measures were originally drawn up at the height of the European crises in an attempt to avert a possible Eurozone break up. So far the measures are yet to be used, however, with the threat of deflation taking hold the ECB are coming under increased pressure to start outright QE.

The ...

Gold falls from 12 week high as commodities continue to tumble

Gold falls from 12 week high as commodities continue to tumble

The gold price retreated yesterday from its recent 12 week high as the broader sell off in base metals and oil took its toll on the yellow metal. The slump in the oil price continued and the copper price fell to a new 5 and half year low. The gold price has fallen £10 per ounce from yesterday’s high to now trade at £810 per ounce.

Copper fell 8.7% at one point before recovering to a daily fall of 5% over worries the global economy is slowing. The World Bank lowered its global growth forecast for 2015 and 2016 highlighting ...

Gold reaches 12 week high as equities and oil retreat

Gold reaches 12 week high as equities and oil retreat

The gold price is now trading at a 12 week high as investors look for protection from weakening stock markets and a tumbling oil price. Gold is currently trading at £820.64 per ounce.

The continuous fall in the oil price is causing investors to transfer funds from riskier assets to more traditional safe haven assets such as gold. Normally when the oil price falls so does inflation, which traditionally reduces gold appeal. However, with global equity markets showing weakness the flight to safety has boosted the demand for the yellow metal.

Yesterday the oil price fell over 5% to its ...

Potential Greek Euro exit spurs gold

Potential Greek Euro exit spurs gold

The gold price rose above £800 yesterday for the first time since March as concerns over Greece’s future in the Eurozone resurfaced. The uncertainty resulted in traders heading towards perceived safe haven assets such as the U.S. dollar and U.S. Treasuries along with gold bullion.

Greek anti bailout party, Syriza, is currently leading the polls and should they win Greece may leave the Eurozone and attempt to renegotiate the terms of its international bailout.

Risk aversion appears to have returned to the markets with gold advancing at the same time and the major stock markets retreating. ...

Gold surges beyond $1,200 as investors seek safety

Gold surges beyond $1,200 as investors seek safety

The gold price has risen for the third consecutive day as investors seek safety from falling stock markets as concerns around the potential Greek Eurozone exit. Gold is currently trading at $1,211.99 per ounce after falling to a one month low $1,168.34 as recently as the 2nd of January. Unsurprisingly the euro fell to a nine 9 year low against the U.S dollar. Gold priced in euros has advanced to its highest level since September 2013 after increasing over 12% in 2014.

The equity sell-off spread to Asia overnight and oil traded below $50 per barrel for ...

ECB Signals it’s ready to start QE

ECB Signals it’s ready to start QE

ECB President, Mario Draghi, has sent yet another signal to the market that the ECB is ready to implement a full blown quantitative easing program if deflation continues to take hold in the Eurozone. As expected the gold and silver price rose on Draghi’s comments.

To halt deflation the world’s largest trading bloc could copy the USA and UK and start purchasing government debt in the form of bonds. The ECB hopes that injecting newly created currency units into the financial system will stimulate the economy. Record low interest rates so far have failed to ...

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