As we approach the end of the quarter, the global economy has set the fertile ground for more growth. Cutting interest rates and extended stimulus has been the prime action taken by several countries – notably in South East Asia.
Central bankers are facing the most difficult task – balancing the economy which is on the verge of deflation or pumping it with cheap money to reflate the stitch up economic bubble.
The U.S. Comex gold futures rebounded over one percent in the past two days to $1,210.10 on Thursday while the Dollar Index also rose 0.85% and the Euro/Dollar plunged 1.25% in the same period.
The U.S. Comex gold futures dipped to $1,190 on Tuesday before ending the day at $1,197.30. On Wednesday morning in Asia, the gold futures rebounded one percent. Year-to-date the gold futures rose 1.11% while the Dollar Index jumped 4.68%.
Alas, the typical last minute agreement after much discussion between the Eurozone and Greece Finance Minister – Yanis Varoufakis. Debt extension deals for another 4 months which will help repair the fragile confidence and push backward the inevitable...