The series of rate cuts by Peoples bank of China, Europe Central Bank and monetary measures by Bank of England suggest that the economy is moving far from inflation and slowly turning to deflation. This shakes the intrinsic quality of Gold that is treated as a barrier from higher prices.
How Gold pares in coming weeks will be keenly watched. As a hedge against Inflation, Gold prices have seen numerous occasions of robust trading and up move. The week ending 6 July 2012, was quite interesting in many ways.
Strength in Dollar towards 1.2287, up 3% in a week against the EURO moved the value of Gold below $ 1600 per troy ounce mark. COMEX Gold most active August delivery contract ended with losses of 1.5% at $ 1578.9 per ounce. China central bank announced interest rate cuts for the second time since June and surprised the markets.
China cut its one year benchmark deposit rate by 0.25 percentage points, one year benchmark lending interest rate was cut by 0.31 percentage points. ECB also slashed the interest rate by quarter percentage points to 0.75 percent to help the ailing economy. [ Via ]
How Gold pares in coming weeks will be keenly watched. As a hedge against Inflation, Gold prices have seen numerous occasions of robust trading and up move. The week ending 6 July 2012, was quite interesting in many ways.
Strength in Dollar towards 1.2287, up 3% in a week against the EURO moved the value of Gold below $ 1600 per troy ounce mark. COMEX Gold most active August delivery contract ended with losses of 1.5% at $ 1578.9 per ounce. China central bank announced interest rate cuts for the second time since June and surprised the markets.
China cut its one year benchmark deposit rate by 0.25 percentage points, one year benchmark lending interest rate was cut by 0.31 percentage points. ECB also slashed the interest rate by quarter percentage points to 0.75 percent to help the ailing economy. [ Via ]
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