Chaotic Europe Burn Their Precious Metals

World Gold prices have decreased sharply until recorded more than US $ 40 per troy ounce on Wednesday (9/5/2012) of the high level session yesterday. Precious metals also recorded the lowest level since the beginning of the year 2012 and broke an important level of $ 1,600 to the range of $ 1587.83. This is triggered by a strengthening of the u.s. dollar, amid continued fears of political upheaval in Europe. Dollar continues to gain experience since the beginning of the week as investors continue to seek assets that are considered less risky or after elections safehaven weekend in much of continental Europe.

The election resulted in the defeat of President of France Nicolas Sarkozy and deliver a victory his rival Francois Hollande Socialist. While in Greece, parliamentary elections resulted in a major defeat for the main parties, who are struggling to form a majority. Consequently, strengthening the dollar finally hit a number of products a commodity, because it makes the berdenominasi dollar these products become more expensive for holders of other currencies.

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Bond Market focus on Greece

Greece is still the motor of the world investment market mover this week.Today, the performance of European government bonds dropped off some of its assets so the yield goes up. The failure of coalition formation factors in Greece make market participants worried about the future of the area. Amid a lack of economic agenda, the bond market is likely still focused on political issues in Greece and several other countries are problematic.

As long as there is no clarity on speculation Greece to expel from the euro, then the interest in risky assets has not yet been recovered. Flower bond Italy 10-year perched on 5.64% and the yield of bonds of 5.84%, Spain were both up 4 basis points.Financial institutions Credit Suisse raised the percentage likelihood of Greece to expel eurozone from 5% to 15%. The latest polls showed as many as 70% of the residents still hoped Greece joined the euro. However the political transition factor could be the reason behind the Athenian resistance against European trimming program. If this is proven, then the European financial system could be shaken

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Market Reviews of The U.S May 10 2012

The Euro slipped to a low level 3-1/2 months against the dollar on Wednesday and dropped down as low as $ 1,600 per ounce, in the anxiety that a political issue in Greece may threaten the deal help anxiety about risks and by bank Spain. Oil prices fell, depressed by data showing US crude oil supplies increased for 7 weeks in a row and the political changes in Europe that could again turn on the debt crisis there. Wall Street managed to escape from the lowest level following news that Greece will get the next bailout payment, but still closed in negative area in the Central European zone of anxiety is still there.

Economic Data today is a current account, economy watchers sentiment, bank lending from Japan, employment change, jobless rate from Australia, the trade balance of China, the ECB monthly bulletin, manufacturing production, industrial production, NIESR GDP estimate from the United Kingdom, the decision and the statement of interest rates, trade balance, BoE jobless claims, the federal budget of the US, from Ben Bernanke's speech, as well as earnings reports from ArcelorMittal, Kohl 's, Sony, Nordstrom.

EUR/USD closing 1.2930, high 1.3005, low C:1590.85, 1.2910, XAUUSD, H:1606.15, CO-L:1579.15 S C: 96.37, H: 97.39 l: 95.17. Dow C: 12795, H: 12884, L:12700.

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