Gold News

"Monetary Policy Pause" sees Gold Fall through $1710, Bundesbank told to Inspect Germany's Overseas Gold Bullion Reserves

Gold Bullion fell below $1710 per ounce ahead of Tuesday's US session, its lowest level in over six weeks, as stocks and commodities also fell and the Dollar rallied, with two weeks to go until the US presidential election.
Silver Bullion fell through $32 an ounce to hits its lowest level since the first week of September.
"You've had QE priced in and what we're seeing now is a bit of a retracement following that," says Daniel Brebner, analyst at Deutsche Bank, referring to last month's Federal Reserve announcement of open-ended quantitative easing.
"We have a pause in monetary policy action – it's very unlikely we're going to see anything in the U.S. and China while there is political transition."
US voters go to the polls in a fortnight, while next month also sees a change of Chinese leadership.
The Federal Open Market Committee today begins its latest two-day policy meeting, which will be followed by a decision tomorrow.
Over in Germany, federal auditors said yesterday that the Bundesbank should regularly inspect its reserves of Gold Bullion held at the central banks of the US, UK and France. Press reports suggest the central bank may begin shipping gold held at the New York Fed back to Germany for inspection.
Elsewhere in Europe, stock markets sold off Tuesday morning for the third day in a row, with Germany's DAX down 1.3% on the day by lunchtime.
In Luxembourg, the European Union Court of Justice is today due to hear a complaint against 
The Eurozone's €500 billion bailout fund the European Stability Mechanism "is at odds with and undermines [European] legal order," the lawyer for Irish politician Thomas Pringle told the European Union Court of Justice Tuesday.
Pringle argues that the ESM violates EU laws against bailing out single currency members. The ESM, which was set up to replace the temporary European Financial Stability Facility, became operational earlier this month after a preliminary ruling by Germany's Constitutional Court in September that its creation did not breach German law.
Billionaire investor Wilbur Ross, who has previously bought stakes in Bank of Ireland and Northern Rock, is in talks about buying Spanish banking assets, Bloomberg reports.
The volume of gold held to back the world's largest Gold ETF, SPDR Gold Shares (GLD), rose by 2.7 tonnes yesterday to 1336.9 tonnes, within 3% of the all-time high hit earlier this month.

Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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