Renewed Contagion Concern After Italian Election - Stocks Fall, FX Volatility And Gold Rises

Tyler Durden's picture

From GoldCore

Renewed Contagion Concern After Italian Election - Stocks Fall, FX Volatility And Gold Rises

Today’s AM fix was USD 1,597.25, EUR 1,219.65 and GBP 1,052.07 per ounce.
Yesterday’s AM fix was USD 1,592.50, EUR 1,201.89 and GBP 1,051.85 per ounce.

Silver is trading at $28.79/oz, €22.11/oz and £19.09/oz. Platinum is trading at $1,600.50/oz, palladium at $729.00/oz and rhodium at $1,200/oz.

Cross Currency Table – (Bloomberg)

Gold climbed $14.10 or 0.89% yesterday in New York and closed at $1,594.60/oz. Silver rose to $29.24 in London before it fell back to $28.90, but it still finished with a gain of 0.94%.

XAU/EUR, 25FEB2010-26FEB2013 - (Bloomberg)

Gold inched above $1,600/oz today, extending gains from the previous session and into the fourth straight session as uncertainty over Italy's election results stoked renewed fears that the euro zone debt crisis is set to return, and increased demand for the yellow metal.

Italy’s politics were turned upside down yesterday after the election resulted in the dissident, 5-Star Movement of comic Beppe Grillo creating the strongest party in the country, but left no group with a clear majority in parliament. This political uncertainty weighed on the euro as Italy is the Eurozone’s 3rd largest economy.

Italy Govt Bonds 10 Year Gross Yield – 1 Year (Bloomberg)

Bullion’s gains were limited as investors await the Federal Reserve chief Ben Bernanke’s semi-annual testimony to U.S. Congress before the Senate Banking Committee today, and tomorrow he visits the U.S. Housing Financial Services Committee. A dovish statement from Bernanke will support gold.

Italy Govt Bonds 10 Year Gross Yield – 1992 – Today (Bloomberg)

European stocks declined as Italy’s inconclusive parliamentary election renewed concern that the region’s sovereign-debt crisis will deepen. This follows falls on Wall Street yesterday and Asian falling overnight.

Huge complacency and even denial about the debt crisis and suggestions that it had been resolved have contributed to investors selling physical gold in recent days.  
The Financial Times
Alice Ross reported that the "heavy moves last night in currencies were among the worst since the financial crisis."

Gene Arensberg of the Got Gold Report warned of the market equivalent of seismic tremors and market reversals, including reversals in the monetary metals (see commentary).

Major powers will offer Iran some sanctions relief this week if Tehran agrees to curb its nuclear program, according to a U.S. official said on Monday. 

Western diplomats have told Reuters the six countries will offer to ease sanctions on trade in gold and precious metals if Iran closes its underground uranium enrichment plant.

Iran has indicated, however, that this will not be enough according to Reuters.

Click here in order to read GoldCore Insight - Currency Wars: Bye Bye Petrodollar – Buy, Buy Gold


Gold rises as Italy vote uncertainty boosts safe-haven appeal - Reuters

Gold’s Cycle Seen as Turned by Goldman as ETP Holdings Slump - Bloomberg

Gold futures score biggest gain of the month – Market Watch

Gold Advances in New York on Purchases by Central Banks - Bloomberg


Gold’s death cross is no reason to feel grim – Market Watch

Market Tremors Continue as Funds Flow back into Gold – Got Gold

What Britain’s downgrade means for your money – Money Week

What's Happening to the Gold Market? – Casey Research

Correcting Antal Fekete’s Historical Silver Errors – Silver-Investor

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Sudden Debt's picture



I need a new dictionairy....


GetZeeGold's picture



I need a new dictionairy....


Accept the ambassador job to Libya....and we'll give you one. You'll see democracy in action up close.


Bring your own flack jacket.

Sudden Debt's picture

Only if I get my own drone...

Hongcha's picture

Out long SPY and flat in cash; the gap open is not big enough; I was looking for a conviction jamjob back to 1500, didn't happen.

MFLTucson's picture

Dont bet against the US courrpt banking sytem or the stock market.


Badabing's picture
Renewed Contagion Concern After Italian Election - Stocks Fall, FX Volatility And Gold Rises untill 8:00 am and then gets smacked


fixed it 

BandGap's picture

Again, how fucked up are things, how unbalanced, how fucking tenuous when we look at the Italian elections as a focal point?

Think about it, a few thousand votes one way and we'd be saying "move along, nothing to see here". But some clown makes a showing in the Italian elections and the house of cards begins to fall.

Too funny, must watch drama unfolding.

Terminus C's picture



Weren't they all clowns?

the not so mighty maximiza's picture

10,000 point loss on dow, anything else is just theatrics.

youngman's picture

I remember when Pat Paulson used to run for the president all the time..he was a clown..a comedian...pretty funny too...

fijisailor's picture

"A dovish statement from Bernanke will support gold."

IF my long term investment decisions depended on the comments of some bozo I'd just take a gun and shoot myself.

JustObserving's picture

The Fed will probably lose up to $547 billion on its holdings in just three years:


Federal Reserve Chairman Ben S. Bernanke’s efforts to rescue the economy could result in more than a half trillion dollars of paper losses on the central bank’s books if interest rates rise abruptly from recent levels.

That sum is the difference between the value of securities in the Fed’s portfolio on Dec. 31 and what they may fetch in three years, according to data compiled by MSCI Inc. of New York for Bloomberg News. MSCI applied scenarios devised by the Fed itself for stress-testing the nation’s 19 largest banks.

MSCI sees the market value of Fed holdings shrinking by $547 billion over three years under an adverse scenario that includes an economic contraction and rising inflation. MSCI puts the Fed’s mark-to-market loss at less than half that, or $216 billion, if the economy performs in line with consensus forecasts of gradually rising growth, inflation and interest rates.

The potential losses are unprecedented in the Fed’s 100- year history, and Bernanke has never used congressional testimony to give a detailed explanation of the consequences of shifting hundreds of billions in interest-rate risk from private portfolios onto the Fed’s balance sheet.


Terminus C's picture

The problem with these GoldCore articles is that they seem to think that there is some form of market out there that relies on technicals and logic.  They don't seem to address the manipulation, nor do they seem to express the underlying reasons gold has any value at all.  As a matter of fact, my impression of all the articles I have read from them they have a decidedly paper gold bias.  Paper gold is exactly like paper currency and plays into the oligarchs hands.


fuu's picture

We've died and gone to heaven.


"Say goodbye to 1600/30 for the rest of your lives.   Time to join Team Blythe. Donning monkey suit right now." -Slaughterer

Sach Mahoney's picture

Well, the good news is GS lowered its price target to 1600 from 1810, so they must be buyers over there

Dieselclam's picture

I simply don't believe their statement that a significant number of investors have been selling physical gold the last few days.

Buzzworthy's picture

Seriously.  What an asinine remark.  Perfect evidence that no one should take these clowns seriously.

Grand Supercycle's picture

SP500 daily & weekly uptrends simultaneously completing protracted topping process.

Resultant downtrend will have good momentum.