Health of US economy may be Key for Gold, not Ukraine crisis: Deutsche Bank

[ShanghaiMetalsMarket]

The health of the United States economy at some point is likely to take center stage away from the geopolitical crisis in Ukraine, said Deutsche Bank.

According to the German Bank, gold hit a four-month high early this week on safe-haven buying on worries about Russia’s presence in Ukraine’s Crimea region.

“Events in Ukraine have provided a lift to the gold price alongside other safe havens such as the Swiss franc and to some extent the Japanese yen,” said the Bank.

“However, history shows that the positive effect of geopolitical events on the gold prices has moderated significant since the 1970s and that any positive effects tend to fade rapidly. We expect events today will be no different and that the most important driver of the gold price will be real (economic) data in the U.S. and how this will affect the course of U.S. long-term real interest rates and the U.S. dollar,” the firm continued.

If there were to be any lasting impact to precious metals from the Crimean crisis, it likely would be in palladium, should any international measures against Russia disrupt Russian exports, given that the country is the world’s largest producer, Deutsche Bank concluded.

 

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[Hoser John]

The trillion dollar collapse of the worlds largest supplier of solar panels in China has also helped raise prices as chinese government backed. Economic uncertanties all over the EU and our economy is a Yugo on it's last legs as radical enviromental laws and taxes cripple more states too. John

 

[pods]

The largest factor affecting the POG might just be the leveraging of physical gold 100x and collusion by the bullion banks in the commodities markets rather than any geopolitical factors.
Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market
The single biggest reason why the POG is hovering slightly above the cost to get it out of the ground.

 

[2cmorau]

where would the POG be if it once again back the dollar?

 

[GoldCTX]

A MUST WATCH ▶ Jim Sinclair: Russia Can Collapse US Economy , Gold Update, Silver is Gold on Steroids



Published on Mar 16, 2014
Jim Sinclair: Russia-Ukraine Crisis News, Gold and Silver Update | Greg Hunter?s USAWatchdog... Gold expert Jim Sinclair is issuing a warning of a massive downside risk to U.S. sanctions against Russia. Sinclair says watch the "struggling dollar" and Russia accepting any currency for oil and natural gas. Sinclair explains, "It's struggling . . . because it smells the real teeth of retaliation for sanctions being in the simple acceptance of any currency whatsoever for payment for gas to Europe. Believe me, they will settle in other currencies. . . . It makes energy cheaper. Why in the world would anyone want to pay in dollars if they can pay in their own currency? Russia could retaliate in a way that would have phenomenal impact on the U.S. dollar. . . . Russia has the upper hand. They have it in their ability to turn the U.S. economy upside down and into collapse. There is no question whatsoever. Putin doesn't need a nuclear bomb. He has a nuclear economic bomb that he can set off at any time."

What would the price of gold be this year? Sinclair predicts, "Gold has $2,000 an ounce in its sites in 2014." On silver, Sinclair says, "Silver is gold on steroids. When gold takes off, silver goes up faster. . . . So, the idea you are going to get an old high on silver or better is a given."






Gerald Celente: Banker Suicides Prequel to Global Collapse - The onset of the great depression of the 1930's brought a spike in banker suicides, Will Rogers noted of the time, "When Wall Street took that tail spin, you had to stand in line to get a window to jump out of, and speculators were selling space for bodies in the East River."