PRZOOM - /newswire/ -
Seoul, Youngdeungpo-Ku, Korea (South), 2011/07/13 - The possibility of default, even of a technical nature, is in stark contrast to the relative optimism about Greece when the Greek parliament enacted tough, new austerity laws in order to win badly needed funds from the European Union. The EU has also.
Gold has shown some strength lately, underscoring how $1,500/oz is emerging as a key battleground level for the barbarous relic.
After slipping below $1,500, gold surged, gaining $30.10, or about 2%, to over $1500/oz. Gold prices have battled around $1,500/oz since the middle of May, with the majority of action occurring above that key line.
While stock markets have had a tepid time lately, gold investors fed off a report that China may be understating the amount of debt in its turbo-charged economy. Other harbingers of possible doom include the still simmering debt problems in the euro-zone and the increasingly nasty Federal debt-ceiling limit debate.
In the near-term, the euro-zone debt issues could prove the most problematic good for gold. Ratings agencies are indicating that they would read the elaborate debt plans for Greece as a default of sorts, which would be bad for Greece and the euro-zone.
The possibility of default, even of a technical nature, is in stark contrast to the relative optimism about Greece when the Greek parliament enacted tough, new austerity laws in order to win badly needed funds from the European Union. The EU has also approved the disbursement.
Along with gold, silver has also moved strongly lately, gaining more than 5% to over $35/oz.
Ritter Group expects the value of gold as a commodity to rise in the upcoming quarter especially due to the expected decline of the Euro.
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