The move by insurgents has also made a mockery of the U.S. administration’s policies in Iraq, which seems to be plagued by intransigence, nepotism and corruption.
Today’s AM fix was USD 1,313.50, EUR 967.02 and GBP 771.51 per ounce.
Friday’s AM fix was USD 1,310.00, EUR 962.60 and GBP 768.42 per ounce.
Gold fell $8.40 or 0.64% Friday to $1,311.30 per ounce and silver slipped $0.05 or 0.24% to 20.65 per ounce near 3pm EST. Gold and silver were up 3.33% and 6.58% for the week.
The speed with which insurgents threatened Iraqi Oil production has stunned many analysts and underscored the fragile nature of energy exports from politically unstable regions. Oil prices are now trading at the highest level since September trading in London at $115.66 a barrel.
The move by insurgents has also made a mockery of the U.S. administration’s policies in Iraq, which seems to be plagued by intransigence, nepotism and corruption. With large swathes of Iraqi people excluded from the political process on the basis of religious and tribal affiliation it is little wonder that a group such as ISIS found the necessary support to field an army and take such enormous territory and is now threatening the capital.
It is also telling that the U.S. seemed wholly unprepared for such an event as it would seem that all stakeholders were caught flat footed. The fact that the “response” being considered is a joint effort with Iran (remember the axis of e-eeeevil”), rings of desperation.
Gold in USD, 2 Year Daily – (Thomson Reuters)
Low Interest Rates are good for gold bullion, India mulls cutting tax on gold imports.
Recent steps taken by the ECB, with the introduction of negative interest rates, and dovish comments from Yellen have underscored a low rate accommodative monetary policy for the foreseeable future. Professional gold investors may now look at gold as being attractive from a potential risk on trade perspective and be able to finance such purchases with low financing costs.
The Hindustan Times reports today that India’s battle to reduces its Current Account Deficit has been largely successful and the government is preparing to reduce the tax on imports and remove some of the restrictions that meant that 20% of what was imported must then be exported. India’s imports of gold fell, circa 245 tonnes, in 2013 – 2014 from the year previous. If the report proves to be accurate extra demand for gold from India could drive gold prices far higher.