Market Update GoldCore 20 June 2013

Market Update GoldCore

Gold, Silver, Equities, Bonds Plunge On Fed Noise And China Debt Crisis Risk

Today’s AM fix was USD 1,303.25, EUR 986.34 and GBP 842.38 per ounce.
Yesterday’s AM fix was USD 1,366.00, EUR 1,019.86 and GBP 874.91 per ounce.

Gold fell $16.10 or 1.18% yesterday and closed at $1,351.00/oz. Silver sank to $21.25 and ended down 1.25%.

Bonds, shares plus gold and silver fell sharply around the world this morning after the U.S. Federal Reserve again suggested an end to their easy money policies. Data also showed China's economy slowing down amid growing concerns that a credit crunch in China is worsening.

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Gold fell to a more than two-year low, while silver was at its lowest since 2010. Gold fell 2.7% and silver slumped by 4.5%.

The sell-off began after Fed chairman Ben Bernanke again suggested that U.S. economic growth was strong enough to begin tapering back on its $85 billion in monthly asset purchases later this year.

Ten-year U.S. Treasury note yields hit 15-month highs of about 2.38% after the comments sparking a slump in global equity and bond markets.  The FTSE fell 1.8% in early trade, while the Dax was down 2.4% and the CAC 40 down 2.1%

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The selling accelerated when a survey of China's factories showed activity slumping to a nine-month low just as a squeeze in the nation's money markets sent short term rates to record highs.

Asian stocks outside Japan suffered their biggest daily loss since late 2011, German Government bond futures dropped to their lowest levels since February and oil slumped by around $1.50 a barrel.

The market slump is also due to the fact that many bond and equity markets had become overvalued despite deteriorating fundamentals. This deterioration in the fundamentals of the global economy may be more important that the Fed suggesting that they will ‘taper’ their extremely unorthodox and massive debt monetisation programme.

The smart, store of wealth, money will continue to gradually accumulate physical bullion on dips like this.

News From Around The World

Video: "Get Out Of Paper Money"   Bloomberg

Video: Gold "Coming Back As Alternative Store Of Value"   Bloomberg

Man Who Oversees $150 Billion Warns Of Hyperinflation   King World News

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