“People are thinking the newsflow is only beneficial in the short term. Europe still has to get its act together on a much longer-term basis,” said Credit Agricole analyst Robin Bhar in a Reuters report.
“While a detailed plan was lacking, we view any progress on bank recapitalization as a positive for gold,” added UBS in the article. “Typically liquidity concerns and funding issues are not gold’s friends.”
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Full disclosure: Tom Lydon’s clients own GLD.
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