Gold Recovers From 2 Week Low

September 27, 2012 at 08:33


Gold edged up on Thursday after a cartel knockdown Wednesday, that was put down to anxiety by the mainstream media over the eurozone debt crisis that has lifted the dollar and weakened oil prices.

New U.S. home sales held near two-year highs in August and prices vaulted to their highest level in more than five years, adding to signs of a broadening housing market recovery.

Violence erupted during the anti-austerity protests in Greece and Spain, stoking worries on whether the euro zone will be able to contain the debt crisis.

Meanwhile, Greece’s international lenders clashed over how to solve Athens’ debt crisis, threatening more trouble for the euro as the IMF demands European governments write off some of the Greek debt they hold.

Spain will announce a series of economic reforms and a tight 2013 budget on Thursday, aiming to avoid the political humiliation of having Brussels impose conditions on a request for an international bailout.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped over 10 metric tons from a record high of 1,331.331 metric tons to 1,320.777 metric tons by September26.

An illegal strike spread through AngloGold Ashanti’s South African operations on Wednesday, while Anglo American Platinum said it could start firing unlawful strikers on Thursday, as the country’s miners grapple to rein in weeks of labor unrest.

The euro wallowed at two-week lows on Thursday, having suffered a third day of decline as violent protests against austerity measures in the streets of Madrid and Athens highlighted the challenges facing highly-indebted euro zone countries.

The S&P 500 fell for a fifth straight trading day on Wednesday as protests in Spain and Greece over euro zone austerity measures raised fresh concerns over Europe’s ability to get its debt crisis under control..

U.S. crude futures inched up on Thursday, after worries about Europe’s debt crisis sank price to the lowest level in a month and a half.