January 23 2012 Tweet Email This
Scottrade: $7 Online Trades. Real-Time Stock Quotes #popstck-widget{float:left; width:190px;} #trend_stock ul li {font-size:8px; margin:0; padding:2px 3px;} #scottrade{background:#dfdfdf; border: 1px solid #A2A2A2; display: block; float: left; margin: 0 10px 5px 0; padding:2px; width: 174px;} #scottrade div a img{padding:0px;} *{font-family:arial,sans-serif;} #trend_stock{ border:1px solid #a2a2a2; display:block; float:left; overflow:auto; margin:0 10px 5px 0; width:178px; } .wdnewstext{ background:#b1e26c; padding:4px 0 0;} .wdnewstext h3{ color:#000; font-size:10px; margin:0; padding-bottom:5px; text-align:center; text-transform:uppercase; } #trend_stock p{ color:#000; font-size:10px; margin:0; padding:3px 0; text-align:center; } ul.stock_widgt{float:left; margin:0 0 5px; padding:0; width:100%;} ul.stock_widgt{padding-bottom:0px;} .stock_widgt li{ background:#eee; display:block; font-size:8px; margin:0; padding:2px 3px;} .stock_widgt li.odd{background:#fcfcfc;} .stock_widgt li.even{background:#fff;} .stock_widgt li a{ color:#003300; letter-spacing:-0.08px; text-transform:uppercase; text-decoration:none;} #trend_stock ul li {font-size:8px; margin:0; padding:2px 3px;} .stock_widgt li:first-child { border-top:1px solid #ccc;} .stock_widgt li:last-child { border-bottom:none;} Today's Trending StocksClick a Company to Research Now:
Harley-Davidson, Inc. (HOG) McDonald's Corporation (MCD) Coach, Inc. (COH) Polycom Inc (PLCM) EMC Corporation (EMC) Texas Instruments Incorporated (TXN) Quest Diagnostics Incorporated (DGX) BioLineRx Ltd. - American Depositary Shares (BLRX) Verizon Communications Inc. (VZ) Kimberly Clark Corp (KMB) Brokerage PartnerOver the weekend, talks between Greece and its private-sector creditors over debt write-downs were unsuccessful. Charles Dallara, the creditors' lead negotiator, left Athens on Saturday as differences remained over the terms of new Greek bonds. Although a deal was not agreed upon, the market is signaling high expectations for a deal to be completed soon.
On Monday, the U.S. dollar index, which places the greenback against a basket of six foreign currencies, declined from 80.34 to 79.65. It is the first time in 2012 the dollar index declined below 80, which had been acting as support in previous months. With the euro holding 58 percent weight in the dollar index, it is responsible for much of the dollar's decline today. The euro climbed to $1.3044 on Monday, it's highest level since December. In a press conference Monday morning, French Finance Minister Francois Baroin said, "A voluntary restructuring of debt held by private investors seems to be taking shape. We are determined to support Greece the time necessary for it to put in place reforms and for them to produce their effects."
The recent hopes for a Greek deal and the decline in the dollar has given a boost to precious metals. Gold is near six-week highs as it closes in on $1,680 per ounce, while silver prices have surged 15 percent this year and currently trade near $32. Furthermore, international agreements and sanctions are reminding investors of the significance of precious metals in the global financial system.
Investor Insight: Inflation Concerns Remain as Gold and Silver Climb Higher
Earlier this month, Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade. This came after Iran replaced the dollar in its oil trade with India, China and Japan, reported Iran's state-run Fars news agency. Today, European Union governments have agreed to fire back and place a ban on all new contracts to import, purchase or transport Iranian crude oil. Europe is Iran's second-largest oil customer after China. Reuters explains, "EU countries with existing contracts for Iranian oil and petroleum products will have until July 1, 2012 to complete those contracts. The sanctions follow fresh financial measures signed into law by U.S. President Barack Obama on New Year’s Eve, and will mainly target the oil sector, which accounts for some 90 percent of Iranian exports to the EU."
Although the oil sector is a large target, there is another important sector being targeted by the sanctions. EU governments also agreed to freeze the assets of Iran's central bank. More importantly, it placed a ban on all trade in gold and other precious metals with Iran's central bank and public entities. "Today's decisions target the sources of the finance for the nuclear program, complementing already existing sanctions," the EU explained. While the sanctions may be targeted at Iran's nuclear financing, the move serves as a reminder to investors that precious metals are alternative reserve currencies used in the absence of the U.S. dollar. Recent data shows that Russia and China are likely to continue business with Iran outside of the U.S. dollar, which will help support gold and silver prices. In addition to trade agreements, Russia has reduced their U.S. Treasury holdings over 50 percent from October 2010, while China has reduced their holdings to the lowest level in over a year.
If you would like to receive more professional analysis on equity miners and other precious metal investments, we invite you to try our premium service free for 14 days.
To contact the reporter on this story: Eric McWhinnie at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
__spr_config = { pid: '4f10e98c396cef087e000379', title: 'Currency Wars Are Driving Gold and Silver Higher', ckw: 'Bondholders,Business,Central Banks,China,european union,gld,Gold,greece,greek debt,India,Investing,Iran,Markets,monetary policy,NYSE:AGQ,NYSE:GDX,NYSE:GDXJ,NYSE:GDXJ NYSE:RJI,NYSE:GLD,NYSE:PHYS,NYSE:SLV,NYSEARCA:AGQ,NYSEARCA:GDX,NYSEARCA:GDXJ,NYSEARCA:GLD,NYSEARCA:PHYS,NYSEARCA:RJI,NYSEARCA:SLV,Precious Metals,russia,Silver,slv,Trading,U.S. Dollar', chan: '', no_slide: '', slide_logo: true, pub: '2012-01-23 18:06:44', url: 'http%3A%2F%2Fwallstcheatsheet.com%2Fgold%2Fcurrency-wars-are-driving-gold-and-silver-higher.html%2F', header: 'RECOMMENDED FOR YOU' }; var content = document.getElementById('simplereach-slide-tag').parentNode, loc; if (content.className){ loc = '.' + content.className; } if (content.id){ loc = '#' + content.id; } __spr_config.loc = loc || content; (function(){ var s = document.createElement('script'); s.async = true; s.type = 'text/javascript'; s.src = document.location.protocol + '//d8rk54i4mohrb.cloudfront.net/js/slide.js'; __spr_config.css = 'document.location.protocol + '//d8rk54i4mohrb.cloudfront.net/css/p/4f10e98c396cef087e000379.css'; var tg = document.getElementsByTagName('head')[0]; if (!tg) {tg = document.getElementsByTagName('body')[0];} if (tg) {tg.appendChild(s);} })();Get Your FREE Special Report: 4 Things You Must Know About the US Economy Now!
You Can't Afford to Miss These New Articles: Venture Capitalists Fourth Quarter Spending Exceeds Raised Funds Healthcare Business Recap: Medtronic FDA Blessing, Watson Pharmaceuticals Earnings Jamie Dimon: America is Undergoing a Mild Recovery Stocks Achieving 52-Week Price Highs Tuesday Intel, Coach and Wal-Mart Climb to 52-Week Highs in Trading Action More from: Buzz, CME, Features, Fox Business, Gold, Popular, Precious Metals, Silver, The Daily Gold, The Trade Energy Business Recap: Baker Hughes Earnings, Petrobras Denies Rumors11 Buzzing Stocks: Apple Surges 9% as Cash Hoard Makes it the 58th Largest Economy, YHOO and AOL DeclineApple Inc. Earnings: Higher-Than-Expected Net IncomeBank of America to Compete with Groupon?Market Recap: Stocks Slump on Greece, Earnings Tweet Email ThisDo You Want More Profits? Wall St. Cheat Sheet Premium newsletter subscribers have been crushing the markets with winning stock picks.
Click here now for your FREE trial to our acclaimed flagship newsletter:
var disqus_shortname = 'wallstcheatsheet'; /* * * DON'T EDIT BELOW THIS LINE * * */ (function() { var dsq = document.createElement('script'); dsq.type = 'text/javascript'; dsq.async = true; dsq.src = 'http://' + disqus_shortname + '.disqus.com/embed.js'; (document.getElementsByTagName('head')[0] || document.getElementsByTagName('body')[0]).appendChild(dsq); })(); Please enable JavaScript to view the comments powered by Disqus. blog comments powered by DisqusTags: Bondholders, Business, Central Banks, China, european union, gld, Gold, greece, greek debt, India, Investing, Iran, Markets, monetary policy, NYSE:AGQ, NYSE:GDX, NYSE:GDXJ, NYSE:GDXJ NYSE:RJI, NYSE:GLD, NYSE:PHYS, NYSE:SLV, NYSEARCA:AGQ, NYSEARCA:GDX, NYSEARCA:GDXJ, NYSEARCA:GLD, NYSEARCA:PHYS, NYSEARCA:RJI, NYSEARCA:SLV, Precious Metals, russia, Silver, slv, Trading, U.S. Dollar
Get Your FREE Wall St. Cheat Sheet Updates Now! Email: Top 6 Stories of the Week 15 Reasons Markets Moved This Week Premium Product Deal of the Month Wall St. Watchdog Alerts Top Moving Stocks of the Week Weekly Earnings Recap Advertisement: ord=Math.random()*10000000000000000; document.write(''); Most Popular Apple Inc. Earnings: Higher-Than-Expected Net Income Mitt Romney is the Poster Child for What’s Wrong with the Tax Code Is This the Secret Wall Street Fraternity that Rules the World? Apple Analyst Cheat Sheet: How Wall Street Foresees Earnings Currency Wars Are Driving Gold and Silver Higher New Research in Motion CEO Delusion: Innovation Caused Our Downfall A Closer Look at Google’s Fourth Quarter Numbers Inflation Concerns Remain as Gold and Silver Climb Higher Greece’s Rental Market Reaches New Level of Desperation Apple Inc. First Quarter Earnings Sneak Peek More Popular Posts >> Intelligent Investing Wall St. Cheat Sheet PremiumTired of wasting time and money sifting through the noise on TV, websites, and Twitter? Get winning stock picks now.
Gold & Silver PremiumJoin Chicago Mercantile Exchange commentator Eric McWhinnie as he covers Gold & Silver for you.
Commodities Premium Read Full Article »