A poor night for gold, with prices failing to hold $1300

Jordan Eliseo

A poor night for gold, with prices failing to hold $1300. Hope of a debt ceiling 'deal' - even though it will in all likelihood just be a 6 week extension/can-kick saw most risk assets rally strongly, even as jobless claims spiked to 374,000, highlighting precarious nature of the US 'recovery' Interestingly, in light of shutdown/debt ceiling problems, Credit Suisse stated that the US could sell some of its record 8,133 tonnes of gold (street value circa $330 billion), as a way of paying their bills. Two points here. First - the US Government spends $3.5 Trillion every year, basically $300bn a month. Selling their gold won't even keep the lights on in the White House until the end of November Second - as per Tim Geithner, when this 'solution' was posed to him back in 2011 he rejected it outright, statingit would send a signal of absoloute dysfunction to financial markets. Indeed! (VIEW LINK)

Jordan Eliseo

ABC Bullion Chief Economist. Gold bull since early 2000s, have spent +20yrs working in investment analytics, research & portfolio construction. Author of two books on investing in gold and causes of the GFC. Lover of markets, competition & technology


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