December Gold News 2016

After failing to raise a necessary $5.2 billion in share capital, Banca Monte dei Paschi di Siena SpA are set to be taken over by the Italian government in potentially Italy’s largest bank nationalisation since the 1930s.

Despite some interest, the troubled bank has failed to find a buyer in recent months, with the prospective suitors insistent on the bank being able to raise 1 billion euros prior to any further investment on their part.

With the bank’s liquidity shrinking at an alarming rate, a state bailout seems to be its only hope of survival. Monte dei Paschi claimed ...

After five consecutive weeks of losses for gold, hedge funds have decreased holdings in the precious metal to their lowest level since February.

Increasing interest rates, a stronger dollar, and higher bond yields have conspired to weaken demand for gold in recent weeks, as lowered expectations for the yellow metal in 2017 have seen many investors look to reduce their exposure to gold.

However, with the uncertainty that caused gold’s bullish year in 2016 still a likely feature of next year and beyond, there is reason to believe that a rebound in precious metals is still possible. 

Gold denominated in U.S. dollars reacted badly to the Federal Reserve's decision to increase interest rates by a quarter of a percentage point. Despite the rise being widely expected the gold price dropped below $1,140 per oz. Raising rates puts downward pressure on gold as it increases the opportunity cost of holding the yellow metal. The Fed's decision pushed the U.S. dollar to a 14 year high against a basket of the world's leading currencies.

Higher rates will increase the cost of  borrowing, strengthen the dollar and make U.S. exports less competitive. But here lies the problem. ...

Gold price are trading near a ten-month low as investors wait for the Feds latest interest rate decision. The yellow metal has retreated in recent months on the assumption the Federal Reserve will finally raise interest rates in December. The equity rally following the election of Donald Trump has also dampened golds appeal.

After registering three positive quarters of growth the gold price has been battered with only sugar showing worse returns on the Bloomberg Commodity Index.

The FOMC meeting concludes later today and its widely-expected Janet Yellen will increase rates for the first time in 12 months. An increase ...

The euro fell this morning after the head of the European Central Bank, Mario Draghi, pledged to prolong fiscal stimulus to the Eurozone. Despite being due to expire in March 2017, Draghi announced yesterday that he would extend the ongoing quantitative easing programme, albeit at a reduced rate of 60 billion euros per month.

The ongoing attempt to stimulate growth in the European economy appears to be bearing little fruit and the decision to continue QE is indicative of a leadership out of ideas.

Only time will tell if it is at all possible to save the ...

Evidence disclosed in the lawsuit regarding Deutsche Bank’s manipulation of the gold price have confirmed the involvement of several other banks in the rigging of the silver market.

This has only confirmed what many already suspected concerning the manipulation of precious metals prices by traders at several major firms. The documents disclosed in the DB lawsuit show evidence of secret conversations between employees of several market making financial institutions.

The documents apparently show evidence that traders and submitters would coordinate trades before a daily phone call in order to manipulate the silver spot market and using illegal methods to fix ...