European Gold Traders Have A Good Laugh

by: Gary Dorsch

European gold traders had a good laugh as the yellow metal approached 500 Euros per ounce. The European Central Bank is absolutely committed to maintaining price stability, a message that financial markets understand, European Central Bank President Jean-Claude Trichet said on March 30th.

Demand for loans, especially for long-term credit, is rising strongly in Germany and questions must be asked about whether global interest rates are appropriate, European Central Bank nominee Juergen Stark said. "We are dealing with a global wave of liquidity today. The ECB in its short history has estabilished the credibility of its currency by anchoring inflationary expectations and will continue to do so," said ECB President Jean "Tricky" Trichet.

"We are still and will continue to be credible, as we were at the first day," Trichet said in an after dinner speech. "Our anchoring of inflationary expectations remain impeccable because markets know we are very, very serious when we are speaking of preserving and maintaining price stability." Euro zone Money supply growth accelerated to 8.0% in February, while mortgage lending was 9.7% higher from a year earlier, its highest level since 1999, the European Central Bank said on March 28th, raising the odds of an ECB quarter-point rate hike in May to 2.75%.

Gold in Euros /oz 30-min