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Eurozone Unemployment at Record Levels

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From GoldCore Gold Bullion

Eurozone Unemployment at Record Levels

Today’s AM fix was USD 1,770.50, EUR 1,372.80, and GBP 1,096.01 per ounce.
Friday’s AM fix was USD 1,781.00, EUR 1,374.65 and GBP 1,098.77 per ounce.

Silver is trading at $34.40/oz, €26.80/oz and £21.40/oz. Platinum is trading at $1,665.00/oz, palladium at $633.30/oz and rhodium at $1,100/oz.

Gold edged down $4.00 or 0.23% in New York on Friday and closed at $1,773.30. Silver was down to a low of $34.27 and finished with a loss of 0.35%. Both gold and silver were relatively unchanged for the week.  Euro gold reached a new high at €1,381.15.  

Gold was down Monday after seeing its largest quarterly rise in over two years, as it tracks a weaker euro on Spain’s struggle to control its finances deeply troubles investors.

Moody's Investors Service's will make a decision on Spain's credit rating and it may be announced later today or will be forthcoming.  

Spain’s finance concerns has contributed to sending the euro to its lowest level in 3 weeks, and makes US dollar gold less appealing to buyers holding other currencies. Dollar priced gold was +0.01% on the week nearly unchanged however there was a 0.8% rise in the dollar index.  

Spain’s debt levels are set to increase next year putting pressure on the government to apply for aid.  Tomorrow, Spain has a conference for its regional heads of government. Catalonia’s call for early elections shows the discord regions feel against Madrid and will again emphasize the plight of Spain’s regional governments.

China’s economic data showed 7 consecutive quarters of contraction on Monday. Hong Kong and China are closed this week for public holidays.

In Japan, the Tankan BOJ report showed that business confidence fell from -1 to -3 in June, its 4th straight quarter of negative sentiment.

US economic highlights this week follow: Monday - ISM Index and Construction Spending. Wednesday - ADP Employment, ISM Services, and FOMC Minutes. Thursday - Initial Jobless Claims and Factory Orders.  Friday - September’s jobs data and Consumer Credit. 

Today, in Indianapolis, Indiana, Federal Reserve Chairman Ben Bernanke will make a rare appearance before the Economic Club of Indiana that will be watched by investors and markets seeking clues to the future of the US economy in the final weeks of the presidential campaign.

Bernanke’s speech at noon in the Indiana Convention Center comes just a few days before the first presidential debate in Denver between President Obama and challenger Mitt Romney where both candidates’ vision of America’s economic future will be on stage.

On Tuesday, the minutes from the US Central Bank’s September meeting will be released.

The eurozone unemployment figures came in at 11.4% in August. This data was compiled for the 17 nations in the single currency and equals the data of June & July after their figures were revised upwards.

This is the highest since they began recording the eurozone jobless claims in 1995.  In a region with such diverse economies Germany remains at 5.5%, while debt beleaguered Spain is at 25.1%.

This clearly shows that the economic crisis in Europe is far from over and certainly cast doubts that the ECB bond purchase plan can resurrect the economy.  The ECB is targeting the economy to contract again at -0.40% down from an earlier forecast of -0.10%.  

Factory output has shrunk for 14 consecutive months and businesses must continue to trim the fat of their organizations during these recessionary times.

The report showed that 18.2 million people were jobless in September; this is an increase of 34,000 people versus the previous month.

As living standards fall and livelihoods are being wretched voter anger is becoming increasingly palpable, especially in countries such as Spain and France. History provides countless lessons as to the political consequences of detached economic policies and their real effects.  Northern Europe’s gamesmanship in rewriting previously agreed banking debt support may set a dangerous precedent and tear apart the tenuous ties of trust between governments - who after all must act together if they are ever to forge a solution to their current economic plight.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

Gold drifts lower, tracks euro weakness on Spain - Reuters

Jobs in focus as stocks enter 2012’s final quarter - MarketWatch

As fiscal cliff nears, markets ponder a rougher ride - Reuters

COMMENTARY

EU Working to Resolve Difference on Bank Plan, Rehn Says - Bloomberg

Euro-Region Unemployment Rate Rises to Record 11.4% on Crisis – Bloomberg

 

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Mon, 10/01/2012 - 08:31 | 2844438 GetZeeGold
GetZeeGold's picture

 

 

It's a new record.

 

Was just saying the other day......why can't we be more like Europe?

 

Mon, 10/01/2012 - 08:44 | 2844451 Oh regional Indian
Oh regional Indian's picture

The general spike in un-employment does not bode well all around. Un-employed, dis-gruntled young people make excellent/terrible cannon-fodder.

But interesting, capital flows into India are on the up.

Is it really going to be a US/EU lock-down first while the 2nd or 3rd world is raised to faux first world status? That is a century of can-kicking right there.

We shall see, eh?

ori

Mon, 10/01/2012 - 08:36 | 2844458 css1971
css1971's picture

You mean worse at lying about your figures?

Mon, 10/01/2012 - 08:32 | 2844447 caimen garou
caimen garou's picture

is that why the euro/usd is up?

Mon, 10/01/2012 - 09:25 | 2844663 syntaxterror
syntaxterror's picture

Can't buy Parisian real estate with toliet paper can you?

Mon, 10/01/2012 - 08:33 | 2844449 css1971
css1971's picture

Heeeeere come the socialists.

Mon, 10/01/2012 - 08:33 | 2844453 JPM Hater001
JPM Hater001's picture

I predict Silver breaks and stays above 35 today.

 

Im thinking about re-upping some of my short positions too.

Mon, 10/01/2012 - 08:56 | 2844537 torak
torak's picture

"...but I'm sure that giving unlimited amounts of money to the largest banks will simulate employment worldwide!  Just give it time -- like, until I retire."

-- Ben "Helicopter" Bernanke

/Sarc off

(Too bad this isn't funny)

Mon, 10/01/2012 - 13:11 | 2845592 Mesquite
Mesquite's picture

Hey, Crony Capitalism works...for the Cronies...!!

Mon, 10/01/2012 - 09:00 | 2844552 Red Heeler
Red Heeler's picture

The solution to the unemployment problem is simple - more government jobs. That's the way it was in the old Soviet Union; everybody had a job and most worked for the government. No one earned a living wage but, hey, everybody had a job.

Meet the new Soviet Union. Same as the old Soviet Union. 

Mon, 10/01/2012 - 09:24 | 2844657 syntaxterror
syntaxterror's picture

Ahhh, today is another Bernanke Groundhog Day. Will he see his shadow? Everytime that clown speaks the market goes up. Mish had a nice chart that documented this.

Mon, 10/01/2012 - 10:16 | 2844874 Navymugsy
Navymugsy's picture

Cypriot unemployment hit 11.7%. 11.5% was what they expected but they didn't expect that until next year! I need to make sure my door locks are working.

Mon, 10/01/2012 - 10:23 | 2844910 giovanni_f
giovanni_f's picture

I am sure it is pure coincidence that our state-run news channels throw out euro negative headlines like these whenever the legal successor of the zimbabwe$ aka us$ threatens to leave the 0.8-area for good only to start its precipitous journey towards the .72 magnet.

 

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