With the metals still in consolidation mode and trading choppy, prices remained mixed on Friday, as the price to invest in Gold eased modestly to $1,667.50 an ounce, and the price to invest in Silver advanced to $31.46 an ounce, after the euro plunged on Thursday following comments by European Central Bank (ECB) President Mario Draghi, that the "euro's strength could hamper an economic recovery." The euro bounced a bit today, and it's helping to lift precious metals prices.
Financial experts warn that although the prospect of a break-up of the euro zone is no longer a threat, and the euro is stabilizing, the euro area’s economic woes are far from over. Analysts at Brown Brothers Harriman say the euro was just correcting recent strength, but it wasn't changing trend. "The key factor driving the euro higher has been the passive tightening of monetary conditions. There is nothing Draghi said that suggests the ECB is going to take action to offset this passive tightening," said BBH.
The Financial Times’ Wolfgang Münchau, wrote, “Hardly a day passes by without someone declaring the end of the crisis. But its two most dangerous aspects are unresolved — zombie banks and macroeconomic adjustment.”
Meanwhile, the White House warned on Friday, that the sequester, the automatic across-the-board spending cuts due to kick in on March 1, would severely cut programs that affect millions of Americans in law enforcement and small business, and it could even affect the nation's food safety and tax collection. President Obama is anxious to reduce the effects of the forced reductions on the fragile economy, and recently urged lawmakers to start work on a short-term budget package that would increase revenues while trimming federal spending.
If Congress fails to take action to stall sequestered cuts, nondefense programs will be slashed by 9 percent and defense programs will be cut by a whopping 13 percent. "These large and arbitrary cuts will have severe impacts across the government," said the administration in a statement.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
