Auguries—Dog Days July 26, 2012 By Kevin Michael Grace
Gold was up (at press time) $38.90 (+2.5%) for the week to $1,619.80, and silver was up .32 (+1.2%) to $27.45. GoldCore attributed gold’s increase to “investor hopes for additional stimulus packages to be released by central banks [which] increased the yellow metal’s appeal as an inflation hedge. [This] was on the wave of Ewald Nowotny‘s comments and hopes that the US would employ further action after [the Fed's] policy meeting next week.”
Nowotny proposed giving the European Stability Mechanism a banking licence, an idea that should be a non-starter because it’s, well, illegal. But one suspects we’re about to witness a sea change in European law real soon now.