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Gold Price Hits Three-Month High
In Bullionvault.com’s latest update on the gold market, they note the strength in the precious metal’s price. During Monday’s trading session in London, gold climbed to $1625 per ounce, its highest level in three months. This happened while stock markets lagged due to weaker than expected growth in Japan.
It is clear by now that the market is expecting further QE from either the Fed or ECB...or potentially even both within the next month.
"Sentiment [towards gold] has gotten better in the past few days with investors focusing on central banks," says Dominic Schnider at UBS Wealth Management in Singapore.
Bullionvault.com highlights an interesting stat: “The cost of an ounce of Gold Bullion minus that of an ounce of platinum meantime breached $230 an ounce Monday, a new record high for the gold-platinum premium.”
Oddly enough, the fact that the ECB may print more euros is having a profound impact on the regions’ currency. The euro rallied above $1.23 on Monday and the rise is credited to traders believing the ECB will intervene by printing in order to save insolvent nations. Most of the time this would have a weakening effect on a currency, but this market is turning history on its side.
The ECB is facing some resistance from nations such as Finland. “We've got a critical view on [ECB bond buying]," added Finnish prime minister Jyrki Katainen in an interview with Germany's Der Spiegel on Sunday.
"The European Central Bank purchased sovereign bonds on the secondary market, and it only helped temporarily."
Over in the US, more QE is being supported by the San Francisco Fed.
Click here to read the entire article from bullionvault.com.