Pinnacle Activity Ticker
Central Banks and Sovereign Wealth Funds Buying Gold
Pinnacle Digest writes: The market awaits the outcome of the EU summit, which began today. Much of the German public is pressuring Merkel not to give in to more bailouts and the country is sick and tired of paying for struggling European nations.
As Adrian Ash stated “"Nein! No! Non!" said the front-page of German finance daily Handelsblatt, urging chancellor Angela Merkel not to concede to calls for weaker monetary or fiscal policy across the 17-nation currency zone.”
With all this uncertainty in the global economy, which now includes the mystery of how the US will pay for Obamacare, gold has yet to become the safe haven asset it is believed by many to be. Despite the lack of interest in gold, however, institutions, sovereign wealth funds and central banks have been supporting it rigorously. The same can’t be said for silver, which now looks primed to be battered down even lower by opportunistic shorts.
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