Archived IMT (2010.11.26)
WHAT HAPPENNED TO GOLD's SAFE HAVEN STATUS ? Golds inability to extend gains during the Korean geopolical tensions emerges from the rising cost of USD LIBOR, and lingering fears of additional rate hikes from China. One of the main differences between today and Feb-May (during Greek sovereign crisis) is that the role of the Chinese tightening stands in the way of any prolonged gold buying. Chinese tightening poses a negative for the risk trade via the potential of hampering demand for commodities. In contrast, last Springs Greece crisis was a green light to buy gold vs. EUR and USD. At the time, Chinas tightening was limited to timid hikes in banks reserve requirement ratios. Today, however, with CPI jumping to 4.4% annually presents more urgency to raise interest rates, which is an obstacle for base and precious metals. The Oct 19 rate hike was the first increase since Dec 2007. Two more rate hikes of at least 27 bps are expected in Q1 2011. HERE's GOLD CHART http://chart.ly/klm2h7l Same idea that was TALKED ABOUT IN this article:
Latest IMTs
-
محتوى بوصلة السوق من العائد الى الذهب و الناسداك
by Ashraf Laidi | Mar 20, 2024 12:42
-
BTC Needs Powell Correction بيتكوين بحاجة الى تصحيح
by Ashraf Laidi | Mar 18, 2024 17:20
-
Not once, twice, but six ستة مرات ليس صدفة
by Ashraf Laidi | Mar 13, 2024 10:07
-
Finding 88K Bitcoin كيفية الوصول الى
by Ashraf Laidi | Mar 4, 2024 12:21
-
شراء بيتكوين وصل الى عشر أضعاف الإنتاج
by Ashraf Laidi | Feb 29, 2024 9:17