LIVE:BULLION INSIGHT- The Euro lost further grounds against the dollar after report showed that Greece’s new austerity plan fall short of target by the European lenders. Greece’s government approved 6.6 billion Euros of austerity measures to trim its budget deficit and to ensure a pending aid payment and a second rescue package. European finance chiefs will be meeting today to discuss how to shield banks from debt crisis and a further boost to the region’s second rescue fund.
Asian stocks fell on the news, while, the Asian benchmark extended the decline after US consumer spending slowed as incomes unexpectedly dropped. However, from the economic data front, German, Euro zone and UK PMI manufacturing numbers may improve which might support the eight months low Euro to revive, while, a likely weak US manufacturing and construction spending might also provide the space to the currency to gain against the dollar.
Anticipating so, gold might remain strong ahead of the Euro crisis meeting. However, any positive signs from the debt-beleaguered Euro zone will cheer up investors, and money may flow out of gold into stocks and other asset classes. So, gold might remain pretty volatile
the Euro fell ahead of the Euro crisis meeting. The finance chiefs will be discussing how to shield the banks from debt crisis and to boost the region’s second bail out fund. Despite Greece’s government approved 6.6 billion Euros of austerity measures to trim its budget deficit, they fell short of the target. This might led the Euro to decline to its eight months low against the dollar