Gold futures score highest finish in over 6 years | Metals Mine

  • Gold futures score highest finish in over 6 years

    From marketwatch.com

    Gold futures notched back-to-back session gains on Wednesday, settling at their highest in over six years as expectations grew for loose global monetary policy, boosting the appeal of the yellow metal. International Monetary Fund head Christine Lagarde’s nomination to lead the European Central Bank and those of Christopher Waller and Judy Shelton by President Donald Trump have supported a rush to buy government debt, driving European sovereign paper and U.S. Treasury yields sharply lower Wednesday. “By rejecting Germany’s Jens Weidmann and choosing IMF chief Christine Lagarde to head the ECB, the Eurozone’s ... (full story)

Comment Options
EventsTrader
Jul 3, 2019 7:50pm
Permalink
Quote
By rejecting Germany’s Jens Weidmann and choosing IMF chief Christine Lagarde to head the ECB, the Eurozone’s political leaders have shown they won’t hear any more hawkish talk from Frankfurt,

Passing over Jens Weidmann was not a huge surprise. But I did think that he was going to take over after Draghi. But they nominated Lagarde? I'm not saying she's not qualified, but there's got to be some politics at play. This was a shocker. The Euro zone relies and depends on Germany's economic strength. It seemed like the right choice from where I'm standing.

I'm no expert on the matter, I've just kept up with it enough to know I hadn't heard Lagarde's name in the mix. Market's are expecting Lagarde to be dovish. It'll be interesting how she juggles keeping prices stable throughout the euro zone while supporting economic growth and job creation. Perhaps what the ECB needed was a politician.

I'm no expert on Europe's politics or Europe in general. But I can tell you that after catching the tail end of Duisenberg, then following Trichet and Draghi for over 15 years, nothing the ECB does surprises me anymore.

Does anybody remember Trichet's insistence on raising interest rates when the world was on the brink of a global collapse? Under Trichet, the ECB raised rates up until July 2008. For perspective, the Fed cut rates aggressively by 325 basis points from Aug 2007 to July 2008, before the ECB finally decided they might want to stop worrying about inflation and price stability and focus on saving the economy.

I'm no hater, so I'll wrap this up with some Chuck Norris:
Attached Image
Reply
bigtx
Jul 3, 2019 7:39pm
Permalink
What's everyone so scared of? The boogey man!? I dig the volatility but I just want some normalcy
Reply
  • Story Stats