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Draghi vs. Weidmann Round 1
From GoldCore
Draghi vs. Weidmann Round 1
Today's AM fix was USD 1,604.50, EUR 1,305.53, and GBP 1,031.90 per ounce.
Yesterday’s AM fix was USD 1,614.75, EUR 1,311.95and GBP 1,032.78 per ounce.
Silver is trading at $27.52/oz, €22.51/oz and £17.76/oz. Platinum is trading at $1,404.75/oz, palladium at $580.80/oz and rhodium at $1,100/oz.
Gold fell $14.10 or 0.87% in New York yesterday and closed at $1,599.20/oz. Silver fell to a low of $27.157 then also recovered, but still ended down 2.04%.
Cross Currency Table – (Bloomberg)
Gold was off less than 1% on Wednesday, its biggest drop in 3 weeks, as the Fed didn’t deliver the sparks for QE3’s fireworks. It did signal that further bond buying could be in store to help the US economic recovery that had lost steam this year. Fed officials commented that the economy had “"decelerated somewhat," a change of tone from its previous assessment in June when the economy was “expanding moderately”.
Investors now look to the European Central Bank’s rate decision at 1145 GMT. If “Super” Mario Draghi doesn’t come out with a loaded arsenal (bold intervention), then the markets will be disappointed. Mario Draghi will be confronting his colleague and nemesis in the ECB Jens Weidmann.
Weidmann is the Head of THE Bundesbank, a former Merkel economics advisor, and an ECB governing council member who has just 1 vote out of the 23 today at the ECB MEETING in Frankfurt.
However Weidmann sees his role differently. "I certainly would not say that we are just one of 17 central banks [in the Eurozone]," he said in an interview published on Wednesday. "We are the largest and most important central bank and we have a greater say than many other central banks in the Eurosystem. This means we have a different role."
Gold Prices/Rates/Fixes /Volumes – (Bloomberg)
The disagreement here lies with the fact that the Germans are against the ECB becoming like a US Federal Reserve in Europe. Weidmann feels it would be wrong to give the ESM a banking license allowing it to tap large quantities of funds from the ECB.
Can “Super” Mario make the jump happen? Time will tell.
The inverse relationship between gold and the US dollar reached its highest point since the start of 2012. The correlation is -.75, while -1 shows a perfect inverse relationship where one asset rises and the other falls.
South Korea increased its gold holdings by 30% to 70.4 tons. This July multiple purchases totalling $810 million, was just off from the $850 million bought last November said BOK.
Central banks are still adding gold to diversify their reserves, although many investors are waiting for ECB and US Fed action before they jump back into the markets.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
NEWS
Wary Fed Is Poised to Act – Wall Street Journal
Gold steady after drop on Fed, eyes on ECB - Reuters
Korea Raises Gold Reserves Third Time Since June Last Year - Bloomberg
Fed Sees Slowing Economy, but Defers New Action – The New York Times
COMMENTARY
Markets hope for bold moves ahead of ECB meeting – France 24
Gold to Explode Higher as US Debt to be Downgraded – King World News
Jens Weidmann – the man with the key to Mario Draghi's handcuffs – The Guardian
»
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Draghi vs. Weidmann Round 1
Place your bets.
I bet we all lose.
Jump the shark Fonz!
They do it everyday in Euroland.
Central banker are hoping for miracle and so does this stock market. Rally on hopes of future stimulus http://www.freefdawatchlist.com/2012/08/last-day-to-save-euro-blame-it-all-on.html
Who? Huh?
You've said the magic words......and that means you're officially in charge.
Good luck!
bloody retards. just let eveyone default and get on with it.
I think that this fight will be typical: Strong words, poses coming from Draghi, media will be enthusiastic, but then the famous Weidmann/German knock-out blow will end that story... at least for today.
Who cares, with the money the Germans have that will only keep this ship of fools afloat for a few more months.
Advice to the Germans, Run Forrest Run
Quote time -
The Sarge is gone! Let's get the fuck outta here! - Hudson
Weidmann is not a central banker as he can't print money. Now is only one member of the board.
Can someone print "Hang Draghi" stickers, please?
More names, please, and yes: I do want them all!
Bernanke, Draghi, Monti, Rajoy, Diamond, Dimon the demon...
Searching ... seek and destroy.
I'm sure they have an team of Goldman-Sachs team ready to take care of all yoyur financing need! Maybe they will find Corzine?
Maybe they will find Corzine?
I'll give you a hint.....would you like some fries with that?
Who cares anymore, just get it over with.
Please hold while we redirect your call.
Allo, my name is Apu.
I am to be helping you today.
I thought Mario was promoted from Super Mario to Hyper Mario yesterday. It doesn't look like GoldCore got them memo.
Tonight he will be promoted to be Wario.
this is a fukking retard game,. a clown comes out and says something like i will save u suckers. everyone opens a bottlle of bollinger. yahoo! then sorry suckers not today. mrkt sells off.
(Fidgits in chair)
"Mom, when are they gonna bring out the farting unicorns? I wanna see the money farting unicorns.
Uncle Benny has farting unicorns. He's cool."