Ashraf Laidi on AlArabiya Talking Euro & Gold - Dec 12, 2011
Dec 12, 2011 20:38
Ashraf Laidi telling AlArabiya of that week's warning about a break in the EURUSD's consolidation has yet to unfold and that gold is due for further losses towards $1600s. Also, on how the sell-off in the once safe-haven metal has been triggered by the activation of safety & raising of cash during the uncertainty, such as today's negative guidance by Intel and the growth/credit rating warning from Fitch at a time when S&P was anticipated to unfold to follow-up on last week's "group" warning.
When asked about the SOLUTION to the Eurozone debt problem, the answer given is aggressive participation by China & Brazil into the latest bilateral contributions to the IMF, currently totaling € 200 bln, and raise the amount by at least € 150 bln.
As gold regains $2000/oz for the third time over the past three years, it's important to distinguish the fundamental and intermarket dynamics for each of these three occasions ($2000/oz) before assessing the road ahead. There are endless combinations of metrics to be used in comparing August 2020, March 2022 and today. I will use the DXY, gold/silver ratio, Fed Funds rate and the Fed's Balance Sheet.