A sharp rally in Sterling at the start of today's European trading has erased almost all of this year's gains for British gold investors. Gold has also pulled back to January prices Eurozone gold buyers, while Dollar and Yen investents in gold remain unchanged from 1 month ago.
The AM Fix in London priced one ounce of gold just below £314, a level first crossed by this bull market in January. Sterling shot through $1.96 against the Dollar on strong house-price news, and fresh M&A deals in the London stock market.
"The British market has seen an M&A boom and nothing we look at suggests it's over," said a strategist at Morgan Stanley. But an analyst at RBS points out that "80 to 85% of rumours turn out to be either misinformation or just somebody repeating a story that was maybe even months old."
"Will the FTSE go any further on the back of these rumours?" he asks. "It shouldn't really...There is already a massive premium built in."
There's a massive premium built into Sterling itself today. Yet the world's central bankers just can't get enough of Britain's currency right now. What might it mean for investors buying gold in any major currency today? Click here for the full story...