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 Prices Ex-US Dollar Break Above $1450 as Italy's 'Brexit' Talk Hits Euro

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 (20)
  • January 2019 (33)
  • December 2018 (28)
  • November 2018 (39)
  • October 2018 (38)
More...

List of authors

Gold Price Sets New Euro, Sterling Records as Emergency Euro Meeting Considers "Unsustainable" Italy

Monday, 7/11/2011 13:28

The Gold Price surged to $1550 per ounce just after noon in London – up 4.2% from the start of last week – while stocks and commodities fell and US Treasury bonds gained after the president of the European Council called a crisis meeting to discuss Italy's sovereign debt.

The Euro Gold Price set a new record of €1092.12 per ounce at Monday morning's London Fix – a 1.5% jump from Friday afternoon's fix.

The Sterling Gold Price meantime came in at £966.32 per ounce – a 0.7% gain from last Friday, and also a new record.

The Silver Price meantime jumped to $36.65 per ounce – down four cents from last Friday's spot market close.

"Italy cannot afford to pay the interest rates it's paying right now," adds Andrew Bosomworth, fund manager at PIMCO, the world's largest bond fund, adding that Italy's debt will be "unsustainable" if interest rates remain at current levels.

"As yields rise and debt financing costs become even more exaggerated, the difficulties of containing the crisis become greater," says Jane Foley, senior foreign exchange strategist at Rabobank.

Yields on Italian government bonds rose to 5.4% on Monday – up from just over 4% this time last year.

Italy's stock market meantime fell sharply on Friday – with shares in its largest bank, UniCredit, down 7.8%. 

Herman Van Rompuy, president of the European Council, called an emergency meeting Monday for officials dealing with the ongoing Eurozone debt crisis. 

Among those invited to the meeting were Jean-Claude Trichet, president of the European Central Bank and Jean-Claude Juncker, chairman of the group of Eurozone finance ministers.

The Eurozone may have to double the size of its bailout fund – the European Financial Stability Facility – to €1.5 trillion to cover a potential crisis in Italy, according to German Die Welt, citing unnamed ECB officials.

Also in Brussels, European leaders are for the first time contemplating a Greek default, according to a report in Sunday's Financial Times.

Options under consideration reportedly include lower interest rates on bailout funds and a program of buying back Greek government bonds.

"The basic goal is to reduce the debt burden of Greece," the FT quotes a senior European official involved in negotiations.

Eurozone leaders are contemplating a selective Greek default "to save ammunition for later" says one Gold Bullion dealer here in London – referring to the potential crisis in Italy, the third largest economy in the single currency.

"The Eurozone sovereign debt crisis has the potential to generate major financial stresses should it end in sovereign default," says a new report from research consultancy Oxford Economics, entitled The Impact of Inflation and Deflation on the Case for Gold.

The consultancy's analysis predicts that the Gold Price should "perform especially strongly in more extreme economic scenarios featuring high inflation, a weak Dollar and elevated financial stress."

The researchers also find that gold performs well in their deflation scenario.

"Large [gold] price swings aren't to be ruled out due to the illiquidity of the summer holidays," cautions Swiss precious metals refiner MKS.

"We would beware of the build-up of speculative short positions...[which are]well above last year's average," says Marc Ground, commodities strategist at Standard Bank.

"[This indicates]a market that is less supportive — which could see the Gold Price more vulnerable to shifts in investor sentiment."

In New York meantime noncommercial "speculative" investors decreased their net long exposure to Gold Futures and options contracts – narrowing the gap between bullish and bearish positions – according to the latest data from the Commodities Futures Trading Commission.

Noncommercial investors increased their short futures and options positions by the equivalent of 5.7 tonnes of Gold Bullion.

Over in China – the world's second largest gold market – consumer price inflation rose to 6.4% in June, up from 5.5% in May.

"The higher the reading in June, the better the chance for it to peak," reckons Ting Lu, economist at Bank of America Merrill Lynch in Hong Kong.

Pork prices were the major driver behind inflation growth – rising 57.1% in the year to June.

Buying Gold? Make it safer, cheaper and easier with BullionVault...

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

Editor of Gold News and presenter of BullionVault 's weekly gold market summary on YouTube from 2011 to 2013, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.

See full archive of Ben Traynor articles.

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