by
GoldCore
Today’s AM fix was USD 1,219.00, EUR 898.50
and GBP 743.07 per ounce.
Yesterday’s AM fix was USD 1,237.50, EUR 913.08 and GBP 754.30 per ounce.
Yesterday’s AM fix was USD 1,237.50, EUR 913.08 and GBP 754.30 per ounce.
Gold fell $32.20 or 2.57% yesterday, closing at
$1,219.00/oz. Silver slid $0.84 or 4.2% closing at $19.15/oz.
Platinum dropped $20.95, or 1.5%, to $1,336.25 /oz and palladium fell
$9.78, or 1.4%, to $708.72/oz.
Gold advanced from nearly a five-month low,
after the biggest one-day drop since October, as investors assessed
whether the U.S. economy is strong enough to warrant a move away from
ultra loose monetary policies.
Gold fell despite the data yesterday being
mixed. It showed that while U.S. manufacturing unexpectedly
accelerated in November at the fastest pace in more than two years,
retail spending fell on the weekend after Thanksgiving for the first
time since 2009. The overly indebted U.S. consumer is struggling
which does not bode well for the consumer dependent U.S. economy.
Gold
in US Dollars, 5 Year (Bloomberg)
Bulls took solace in the fact that the price
falls came on very low volumes – volume was 20% below the average
for the past 100 days at this time of day, data compiled by Bloomberg
showed.
Gold is down 26% year to date and many analysts
agree that it is now very oversold. The 14-day
relative-strength index fell to 30 yesterday, signaling to some
analysts who study charts that the price may be set to rebound.
Physical demand picked up on lower prices
overnight – particularly in China and Asia. In China, now the
largest buyer of gold in the world, premiums of 99.99% purity gold
climbed to about $11 an ounce from $7 on Monday on the Shanghai Gold
Exchange (SGE).
Bail-Ins
And Deposit Confiscation Coming Noonan Confirms At ‘Future of
Banking in Europe’ ConferenceA
major conference on the future of banking yesterday heard
contributions on a European banking union which is being negotiated
by Eurozone finance ministers. One of the aspects of that union will
likely be a ‘bail-in’ of deposits when banks fail in the future.
The toolkit underpinning the Single Resolution
Mechanism is provided for in the bank recovery and resolution
proposal (BRR) which was agreed last June in Council under the Irish
Presidency. The proposal provides a common framework of rules and
powers to help EU countries manage arrangements to deal with failing
banks at national level as well as cross-border banks, whilst
preserving essential bank operations and minimising taxpayers’
exposure to losses.
One
of the main pillars to the BRR framework to facilitate a range of
actions by authorities are “resolution tools”. Noonan confirmed
yesterday that resolution tools include the sale of business, bridge
bank and asset separation tools and also the use of bailins.
The era of bondholder bailouts is ending and
that of depositor bail-ins is coming.
Preparations
have been or are being put in place by the international monetary and
financial authorities for bail-ins.
The majority of the public are unaware of these developments, the
risks and the ramifications.
It is now the case that in the event of bank
failure, your deposits could be confiscated.
Let’s be crystal clear: The EU, UK, the U.S.,
Canada, Australia and New Zealand all have plans for bail-ins in the
event of banks and other large financial institutions getting into
difficulty.
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