Investors urged to buy gold "ahead of QE3" – BullionVault
US Dollar prices to Buy Gold
fell from a new 2-week high of $1624 per ounce Thursday lunchtime as
New York returned from the Fourth of July holiday, easing 0.5% lower as
the Euro currency fell hard following a weakening of central-bank policy
in Frankfurt, London and Beijing.
The European Central Bank today cut its key lending rate by 0.25% to a new record low of 0.75% as widely expected.
It also cut the interest rate paid to commercial banks holding cash on deposit at the ECB to zero.
European stock markets rose and commodity prices jumped on the news, pushing Brent crude oil back above $100 per barrel.
Silver Prices retreated 1.2% after hitting this week's high at $28.45 per ounce.
"Hold tight to gold ahead of QE3 [in the US]," says today's Global Daily Spotlight for clients of investment and bullion bank Société Générale, advising a "Strong Overweight" position in precious metals.
"Our fundamental gold view is unchanged, and we still see upside for the metal," agrees the latest Commodities Daily from Standard Bank in London.
"We would see any potential sell-off in gold after [today's European rate] announcement as a short-term opportunity" to Buy Gold, the bank's analysts say.
Because "ultimately a rate cut implies a lower real interest rate. That would be bullish for gold."
Brilliant indeed! This is indeed a very interesting page. I am looking forward for more page. Thanks!
ReplyDeleteLooks like we are all going to have to strap on our seat belts, this economic ride is going to be rough!
ReplyDelete