This page has been archived and commenting is disabled.

Euro and Global Debt Contagion Concerns Mount - Gold New Record Nominal Highs In Euros And Pounds

Tyler Durden's picture





 

From Gold Core

Euro and Global Debt Contagion Concerns Mount - Gold New Record Nominal Highs in Euros and Pounds

Europe’s debt crisis has seen gold prices climb to new record highs in euros and British pounds at EUR 1,087.80/oz and GBP 944.93/oz respectively. Contagion concerns are mounting due to the failure of the ECB, the IMF and respective governments to tackle the sovereign debt crisis.


Cross Currency Rates

The scale of the debt crisis effecting Greece, Ireland, Italy, Belgium, Portugal and Spain is leading to growing concerns of a knock on deleterious impact on European banks and the global banking system.

The real risk of contagion will likely lead to increasing safe haven demand for gold.

Gold should also be supported today by the OECD’s warning regarding the U.S. and Japan’s very poor fiscal situations and their lack of credible plans to tackle high and spiraling budget deficits.

Gold Bullion in US Dollars – 30 Days (Tick)

Gold has broken out in euros and pounds and this strength is likely to again be seen in dollar terms with the record nominal high of $1,577.77 likely to be challenged again.

There is good support at $1,460/oz (see chart above) with strong physical demand seen internationally.

Gold in dollar terms is challenging resistance at $1,527/oz and a break out and close above this level could see a quick move to challenge resistance at the record nominal high of $1,577.57/oz and the psychological level of $1,600/oz.


Gold Bullion in US Dollars – 20 Days (Tick)

Long term the real record high of $2,400/oz from 1980 remains likely to be achieved.

Gold bears and gold bubble callers’ predictions of falling gold prices are again likely to be proved badly wrong. Rather than continually attempting to predict the future and predict the top of the market they would better serve their readers by properly analyzing the real fundamentals driving the market and informing people of the importance of having at least some allocation to gold – especially from a financial insurance and diversification point of view.

SILVER

Silver’s fundamentals remain even stronger than gold’s and the recent paper driven sell off due to a series of margin calls and heavy selling on the COMEX appears to be over.

Silver has support at the recent low of $32.31/oz. There are continuing calls by knowledgeable silver analysts for silver to rise above $100/oz which suggests that silver may rise above its nominal high of $50/oz sooner than the silver cynics expect.

Silver Bullion in US Dollars – 10 Days (Tick)

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 05/25/2011 - 07:00 | Link to Comment chubbar
chubbar's picture

OT, but the FED's are threatening a no fly zone over the entire state of Texas.

This from the tenth amendment center

"Yesterday, the U.S. Department of Justice upped the ante in a high-stakes political game of chicken. Lobbying against pending legislation in the Texas legislature which would criminalize any searches conducted without probable cause, U.S. Attorney John E. Murphy sent a letter to a few high-ranking members of Texas’ government warning against promoting the bill and threatening a complete closure of all flights to and from the state.

“If HR [sic] 1937 were enacted, the federal government would likely seek an emergency stay of the statute,” Murphy wrote. “Unless or until such a stay were granted, TSA would likely be required to cancel any flight or series of flights for which it could not ensure the safety of passengers and crew.”

No doubt written with the threatening intent one reads into it, Murphy added: “We urge that you consider the ramifications of this bill before casting your vote.”

Previous to the federal government’s threat, the Texas legislature had considered the ramifications of the bill. More importantly, they were responding to a clear need to uphold the Fourth Amendment and ensure that each person enjoys the right “to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures” — a right which the U.S. Constitution mandates “shall not be violated.”

Wed, 05/25/2011 - 07:15 | Link to Comment PaperBear
PaperBear's picture

Being free completely outweighs supposedly being made safe by the TSA.

And I am sure that other states will tell the DOJ that they will not be told what to do with regards to flights into the state of Texas.

Wed, 05/25/2011 - 12:45 | Link to Comment silberblick
silberblick's picture

Click below to see a graphic illustration of bankster's dirty hierarchy of needs:

http://thesilvergoldhedge.blogspot.com/2011/05/banksters-dirty-hierarchy...

Wed, 05/25/2011 - 07:29 | Link to Comment hardcleareye
hardcleareye's picture

They pulled the bill down.  To bad, maybe the Vermont State leg. will pick up on this.....

Wed, 05/25/2011 - 08:35 | Link to Comment trav7777
trav7777's picture

TSA doesn't "ensure" ANYTHING. 

The insanity is overflowing with these government people.  They have just assumed themselves competent.  Watched Frontline last night on Assange and that same old shit about leaks putting people in harm's way...wtf?  How could someone on the side of the entity that put 150,000 ARMED TROOPS into an invasion of another country have the gall to talk about harm's way?  If they were that concerned about "innocents dying," they wouldn't have invaded in the FIRST PLACE.

Yet there they are talking crap where they assume a frame of reference that is objectively ridiculous.  They are always right; they're the government!  They work for the people!  They are in public "service"!

Question the party line and people like at you like you have 2 heads.

Texas wants profiling-  a logical end to the insanity that diversity/PC has imposed on air travel.  It's inherently, objectively ridiculous.

Wed, 05/25/2011 - 09:38 | Link to Comment zaknick
zaknick's picture

You're being taken for a ride. Wikileaks is cognitive infiltration by bankster powers. Says Webster Tarpley (tarpley.net), William Engdahl ( http://www.engdahl.oilgeopolitics.net/ ) and others who know what's really going on and who the players and their motives are.

The TSA is training for sheep and fear reinforcement.

Wed, 05/25/2011 - 07:01 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Greece is going to take the money, have a party, and still not pay it back.

Go Greece.

Wed, 05/25/2011 - 07:05 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

That's what socialist do.  Party on!

Wed, 05/25/2011 - 07:31 | Link to Comment hardcleareye
hardcleareye's picture

So are wall street and bankers socialist too???? lololol

Wed, 05/25/2011 - 08:28 | Link to Comment Zero Debt
Zero Debt's picture

First, it looks like the government is having a party and the banks are paying for it.

Then, it looks like the banks are having a party and the government is paying for it.

Finally, you realize that you have been paying all along.

Wed, 05/25/2011 - 08:31 | Link to Comment tmosley
tmosley's picture

What, you are just noticing this?

Wed, 05/25/2011 - 07:05 | Link to Comment PaperBear
PaperBear's picture

Only 32MN oz of eligible silver now left in the COMEX.

If the rate of depletion continues then the COMEX will be out of eligible silver by the end of 2011.

Why would the real investment community trade on the futures market after such an event ?

And would the selling of naked short contracts become impossible ?

Get physical silver while you still can and when you cannot get any phyiscal silver then get some shares in Sprott Physical Silver Trust Fund.

Wed, 05/25/2011 - 08:31 | Link to Comment Zero Debt
Zero Debt's picture

They could make settlement in anything. How about ferro tungsten?

Actually, tungsten has doubled in price since mid-2009, from 25 USD/kg to over 50 USD/kg.

How is that for a 100% gain?! Can't believe anyone has spotted the tungsten rally :)

http://www.infomine.com/chartsanddata/chartbuilder.aspx?z=f&g=127646&dr=3y

Wed, 05/25/2011 - 08:46 | Link to Comment JW n FL
JW n FL's picture

there are multiple stories on tungstun from last year.. use the search option instead of typing so much.

Wed, 05/25/2011 - 08:57 | Link to Comment Zero Debt
Zero Debt's picture

I know, lots of cute conspiracy stories about tungsten in gold vaults, but not its price trend.

Google "tungsten price rise" or similar, very few care about it, except for making jokes that it is cheap.

Nevertheless, my apolologies, I didn't know you were tracking tungsten spot.

Wed, 05/25/2011 - 08:40 | Link to Comment trav7777
trav7777's picture

dude.  COMEX is NOT, repeat NOT the source of silver for the silver market, ok?

It is, like any futures exchange, INTENDED to be primarily a cash settlement mechanism for price fixing.  There is no shortage of silver even if COMEX is completely out.  I have no idea why Comex in this day and age still even continues this legacy function

Wed, 05/25/2011 - 07:08 | Link to Comment dervish
dervish's picture

Paper Money Armageddon is coming nearer and nearer.....

 

let's hope the sheeple do not panic and accept the transformation into the global fascist government, otherwise they will be slauthered before they are due

Wed, 05/25/2011 - 07:16 | Link to Comment Sudden Debt
Sudden Debt's picture

GET IT OVER WITH!!

WE'RE LOSING PRECIOUS SUNLIGHT TIME!! DEFAULT ALREADY!

 

This just keeps on going and going and going and going...

 

This is like watching those STUPID duracell adds!

KILL THE BUNNY!!

 

Wed, 05/25/2011 - 07:15 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

If a major western nation defaults, people will be standing around scratching their heads, pointing out, Hey! They are bankrupt too!

 

Wed, 05/25/2011 - 07:21 | Link to Comment Sudden Debt
Sudden Debt's picture

or a bit like today:

They are bankrupt to, but more than we so we are WAY better off than those other people who are also bankrupt! WE RULE!!

 

Wed, 05/25/2011 - 07:10 | Link to Comment Sophist Economicus
Sophist Economicus's picture

I'm not a socialist, but if they want to send a little my way, I promise to spend it and not pay it back too....

Wed, 05/25/2011 - 07:34 | Link to Comment Sudden Debt
Sudden Debt's picture

before you say stuff like that, you should realize that that's a BIG commitment my friend!

 

REMEMBER YOU GOT TO SPEND IT ALL YOURSELF!! Without any assistance of you wife, mistress...

 

Wed, 05/25/2011 - 07:36 | Link to Comment Long-John-Silver
Long-John-Silver's picture

I could easily spend it on Gold. I would go for Silver but it's becoming so hard to buy physical Silver and have it delivered to my door I fear collapse would prevent delivery.

Wed, 05/25/2011 - 07:59 | Link to Comment Sudden Debt
Sudden Debt's picture

YOUR NOT THINKING LIKE A BANKER!!!!

JEEeeezzz....

 

SPEND = BLOW IT = GONE

 

Not building RESERVES or things like that!

In what part of the world do you live?

 

I'm sorry Long-John... you're off the team...

 

Wed, 05/25/2011 - 07:20 | Link to Comment dollartheque@ya...
dollartheque@yahoo.com's picture
@sudden debt, HI, I try to  follow your comments as much as i can here on ZH!!! As a canadian, and head of a small family, i worry constantly about what is to come. Whats the best action i shall take to protect my family in the future? your reply is appreciated

 

Wed, 05/25/2011 - 07:56 | Link to Comment vocational tainee
vocational tainee's picture

what about your body weight in silver..

Wed, 05/25/2011 - 07:22 | Link to Comment Mae Kadoodie
Mae Kadoodie's picture

..and it's gone...

Wed, 05/25/2011 - 07:22 | Link to Comment Mae Kadoodie
Mae Kadoodie's picture

..and it's gone...

Wed, 05/25/2011 - 07:26 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Hmmm. I didn't see Iceland on that list in "debt crisis". Why is that?

Wed, 05/25/2011 - 07:35 | Link to Comment AUD
AUD's picture

The Icelanders have already been screwed. Last I heard the Krona had been devalued some 60% against the USD. The price of gold must be in the stratosphere.

But I guess weed will get you through times of no money, better than money will get you through times of no weed?

Mon, 05/30/2011 - 20:50 | Link to Comment brand shoes
brand shoes's picture
Welcome to visit Asics Shoe Outlet online shop, choose your favorite style here. You can buy Asics Tiger Shoes, Asics Casual Shoes, Asics Netball Shoes, Asics Kayano Shoes with free shipping. Asics shoes online from australia
supply men's and women's asics gel running shoes for sale .Get Gel Running Shoes from Asics Australia online sale, enjoy no tax, free shipping, high quality and cheap price. Come on!Just click add your favorite Asics Shoesto the shopping cart now. Enjoy online shopping experience here.
Mon, 05/30/2011 - 20:47 | Link to Comment brand shoes
brand shoes's picture
Welcome to visit Asics Shoe Outlet online shop, choose your favorite style here. You can buy Asics Tiger Shoes, Asics Casual Shoes, Asics Netball Shoes, Asics Kayano Shoes with free shipping. Asics shoes online from australia
supply men's and women's asics gel running shoes for sale .Get Gel Running Shoes from Asics Australia online sale, enjoy no tax, free shipping, high quality and cheap price. Come on!Just click add your favorite Asics Shoesto the shopping cart now. Enjoy online shopping experience here.
Do NOT follow this link or you will be banned from the site!