Save your cookie preferences

We use cookies to remember your site preferences, record your referrer and improve the performance of our site. For more information, see our cookie policy.

Please select an option below and 'Save' your preferences.

Save

You can update your cookie preferences at any time from the 'Cookies' link in the footer.

We use cookies (including third-party cookies such as Google) to remember your site preferences and to help us understand how visitors use our sites so we can improve them. To learn more, please see our privacy policy and our cookie policy.

To agree to our use of cookies, click 'Accept' or choose 'Options' to set your preferences by cookie type.

Options Accept

  • English
  • Deutsch
  • Español
  • Français
  • Italiano
  • Polski
  • 日本語
  • 简体中文
  • 繁體中文
  • Daily audit
  • Help
  • Contact
  • Deposit
  • Login
  • Open account
  • ABOUT US
    • About BullionVault
    • In the press
    • Reviews
    BUY/SELL BULLION
    • Live order board
    • Daily Price
    • Regular Investing
    INVESTMENT GUIDE
    • Guide to gold
    • -How to buy gold
    • -Gold investment
    • -Gold investment plan
    • -Investment insurance
    • -Compare asset performance
    • Guide to silver
    • -How to buy silver
    • Guide to platinum
    • -How to buy platinum
    GOLD NEWS
    • Gold news front page
    • -Gold price news
    • -Opinion & analysis
    • -Market fundamentals
    • -Gold/Silver Investor Index
    • -Infographics
    CHARTS
    • Gold price
    • Silver price
    • Platinum price
    • Price alerts
  • Login
  • Open account
  • BUY/SELL BULLION
  • Live order board
  • Daily Price
  • Regular Investing
  • INVESTMENT GUIDE
  • Guide to gold
    • ⤷
    • How to buy gold
    • Gold investment
    • Gold investment plan
    • Investment insurance
    • Compare asset performance
  • Guide to silver
    • ⤷
    • How to buy silver
  • Guide to platinum
    • ⤷
    • How to buy platinum
  • GOLD NEWS
  • Gold news front page
    • ⤷
    • Gold price news
    • Opinion & analysis
    • Market fundamentals
    • Gold/Silver Investor Index
    • Infographics
  • CHARTS
  • Gold price
  • Silver price
  • Platinum price
  • Price alerts
  • ABOUT US
  • About BullionVault
  • In the press
  • Reviews
  • Help
  • Contact
  • Daily audit
    • English
    • Deutsch
    • Español
    • Français
    • Italiano
    • Polski
    • 日本語
    • 简体中文
    • 繁體中文

Gold News

Live support

NEED HELP? ASK US NOW

Search form

Gold News front page

Gold Price News

Gold Price Gains as Dollar Drops, Selling from GLD ETF Erases 2019's Growth

More...

Gold Investing In Depth

Learn about gold bullion bars

Learn about gold bullion coins (and costs)

Gold investment: Why & how?

Gold Investment Analysis

  • Latest Gold Investor Index
  • Diversification: Gold as investment insurance
  • 40-year Asset Performance Comparison Table

Gold Articles

Opinion & Analysis

Gold Price News

Investment News

Gold in History

Gold Books

Gold Investor Index

Gold Infographics

Archive

  • February 2019 (21)
  • January 2019 (33)
  • December 2018 (28)
  • November 2018 (39)
  • October 2018 (38)
More...

List of authors

Gold Prices "Could Correct if Bernanke Disappoints", ECB May Need to Take "Exceptional Measures"

Wednesday, 8/29/2012 11:50

Gold Prices dipped below $1665 per ounce Wednesday morning in London, slightly below where they started the week, while stock markets edged lower, with markets focused on upcoming meetings of central bankers in the US and Europe. 

Silver Prices fell to $30.76 an ounce – in line with last week's close – as other industrial commodities also ticked lower, following news that iron ore prices in China had dropped for the 13th day in a row.

On the currency markets, the Euro held its ground above $1.25 this morning, with two days to go before Federal Reserve chairman Ben Bernanke gives a speech on monetary policy at the annual Jackson Hole conference of central bankers.

A number of analysts have already predicted that the Fed will announce further monetary easing when it meets in a fortnight.

However, "the Jackson Hole conference is not the forum for Bernanke to make any strong commitment to easing," reckons Marc Ground, commodities strategist at Standard Bank.

"[But] this will not prevent the market from attempting to 'read between the lines' — leaving room for all manner of interpretations and price responses."

"In terms of further easing, nothing has been decided," Federal Reserve Bank of Dallas president Richard Fisher, a non-voting member of the Federal Open Market Committee, said Tuesday.

"Nothing is predestined."

"Gold Prices could correct, possibly abruptly and steeply, should Bernanke's speech again hint of distancing the Fed from further monetary policy easing," says James Steel, chief commodities analyst at HSBC.

"We see near-term risks of a reversal if Jackson Hole does not deliver what the market is hoping for," agrees Nick Trevethan, senior metals strategist at ANZ.

European Central Bank president Mario Draghi has cancelled his scheduled Jackson Hole appearance, citing a heavy workload. The ECB's Governing Council holds its monthly policy meeting next week, where it is expected to outline plans to stabilize the Euro, which could include intervention in sovereign debt markets.

In an interview published by Der Spiegel on Sunday, German Bundesbank president Jens Weidmann warned that "central bank financing can become addictive like a drug".

"The role the ECB appears ready to take on will overburden the central bank," added Juergen Stark, former ECB chief economist who resigned last year, in an opinion piece published by newspaper Handelsblatt Tuesday.

"[It] will allow its independence to be further eroded by politics...and ultimately, the central bank will no longer be able to fulfill its core task of delivering price stability. There is the risk of higher inflation – not today, not tomorrow, but in the medium- to long-term."

"It should be understood," counters Draghi in a piece published in Die Zeit today, "that fulfilling our mandate sometimes requires us to go beyond standard monetary policy tools...this may at times require exceptional measures."

Elsewhere in Europe, Catalonia has become the third Spanish region to ask Madrid for a bailout, saying it will ask for €5 billion. 

Earlier this week it was reported that the national government has agreed to regional spending plans that would see them exceed agreed budget deficits by up to 10%, according to the Financial Times. Spain's prime minister Mariano Rajoy however insisted Tuesday that his government is not negotiating a bailout.

Spanish banks saw private sector deposits fall at a record rate in July, according Bank of Spain figures published yesterday.

Here in the UK, Britain's richest people should pay an emergency tax to avoid a breakdown in social cohesion, according to deputy prime minister Nick Clegg, who leads junior coalition government partners the Liberal Democrats.

"If we are going to ask people for more sacrifices over a longer period of time...then we just have to make sure that people see it is being done as fairly and as progressively as possible," Clegg says in an interview with the Guardian Wednesday.

The volume of Gold Bullion held to back shares in the SPDR Gold Trust (GLD), the world's largest Gold ETF, rose to its highest level since March yesterday, hitting 1289.5 tonnes.

By contrast, the volume of Silver Bullion held by the world's biggest silver ETF, the iShares Silver Trust (SLV), fell slightly to 9763.5 tonnes.

Since 2005, BullionVault has given retail investors access to the lowest prices to Buy Gold, gold which is securely stored in professional, non-banking sector vaults. Visit BullionVault and discover how you can buy the safest gold at the lowest prices...

To receive links to similar stories, follow us on Twitter or like us on Facebook...

  • Reddit logo
  • Facebook logo
  • Twitter logo
  • Google logo
  • Yahoo logo
  • LinkedIn logo
  • Digg logo
  • StumbleUpon logo
  • Technorati logo
  • del.icio.us logo

The London Gold Market Report is the daily market review from BullionVault, the world's largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world's $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context

See full archive of the London Gold Market Report.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.

Follow Us

Facebook Youtube Twitter LinkedIn

 

Mobile apps

 - live trading 24/7

 - buy & sell instantly

 - up-to-the-second charts

 

 

 

Daily news email
Go to 'communications settings' 

Get the latest daily gold price news free by email

Latest gold news by email

 

 

 

Gold Investor Index
5 February 2019

Gold Investor Index

Gold up, investing up!

 

 

 

CNBC TV-18
3 January 2019

CNBC TV-18

Gold jumps into New Year

 

 

 

Portfolio Adviser
19 October 2018

Vaulted large bar gold. Source: BullionVault

Beyond gold 'chatter'

 

 

 

Money Observer
6 August 2018

Bitcoin ain't gold

No, Bitcoin isn't "new" gold

 

 

 

  •  Email us

Market Fundamentals

  • Gold 'Set to Drive' Silver Price Gains in 2019
  • LBMA Gold Price Forecasts See Tight Range in 2019
  • Gold Mining M&A Now 'Easier' Than New Exploration
More...
  • Cost calculator
  • Cookies
  • Terms & conditions

©BullionVault Ltd 2005-

  • Twitter
  • Facebook
  • Google Plus
  • LinkedIn
  • YouTube