I find this absolutely hilarious.
“Gold prices slipped to a near one-week low on Tuesday as the dollar strengthened following a deal on extending debt limit in the United States.”
A stronger Dollar because government proposes we get even deeper into debt.
It’s a Bizzaro world.
The real problem is not about extending the debt limit.
It’s about where will we get the money as the world flees from our debt?
Print baby, print!
CIGA Wolfgang Rech
PRECIOUS-Gold Dips As Dollar Strengthens On U.S. Debt Deal
July 23, 2019
* ECB to meet on Thursday, Fed on July 30-31
* Spot gold may fall to $1,401-$1,409/oz range – technicals (Adds comments, updates prices)
By Karthika Suresh Namboothiri
July 23 (Reuters) – Gold prices slipped to a near one-week low on Tuesday as the dollar strengthened following a deal on extending debt limit in the United States.
President Donald Trump and U.S. congressional leaders agreed on Monday on a two-year extension of the debt limit and federal spending caps to avert a government default this year but adding to budget deficits in the world’s largest economy.
Spot gold fell 0.4% to $1,418.39 per ounce as of 1013 GMT. Prices had dropped to $1,413.80 earlier in the session, last touched on July 17.
U.S. gold futures dropped 0.6% to $1,419.
“We’re seeing a slightly stronger dollar and also news on the political front in the U.S. … created a bit of an opportunity for profit taking,” said Capital Economics analyst Ross Strachan, adding prices could soften in the near term.
Is this because they do not have the cash to “set aside”?
Global Regulators Extend New Derivatives Rule To September 2021
July 23, 2019
LONDON (Reuters) – Global regulators have delayed by a year to September 2021 the final phase of new rules that require market participants to set aside cash or margin to cover their derivatives transactions.
Derivatives played a core role in the global financial crisis a decade ago and new rules were agreed to require all market participants to back their trades with cash in case they turn sour.
The Basel Committee of global banking regulators, and its counterpart for securities markets, IOSCO, said in a joint statement on Tuesday that progress has been made in rolling out the new margin rules for derivatives that do not pass through a clearing house.
The final so-called “Phase 5” of the rollout was due in September 2020, but many market participants said they would not be ready.