Gold Sets New GBP and EUR Records on 'Global War' Warnings, PMI Plunge
Friday, 11/22/2024 15:33
GOLD PRICES hit fresh record prices for UK and Euro investors Friday morning, marking a record 41 and 45 new highs in 2024 so far as the Pound and the single currency both sank amid warnings that Russia's 1000-day war on Ukraine could spread into a global conflict while new data showed business activity across Western Europe slowing badly.
Bullion prices then eased back as European stock markets rallied and new US data said the services sector of the world largest economy is booming at the fastest pace in 2.5 years ahead of Donald Trump returning to the White House.
Gold for US investors briefly topped $2700 per Troy ounce – still 2.8% below Halloween's pre-election peak – even as the Dollar leap to 2-year highs on the currency market after Moscow's President Putin followed
Russia's hypersonic missile strike on Ukraine by saying Kremlin is "entitled" to strike countries allowing Ukraine to attack Russia with weapons they have made and supplied.
With Sterling down almost 10 cents from September's 2.5-year high above $1.34,
the UK gold price in Pounds per ounce topped £2160 at London's AM benchmarking auction, gaining 33.2% for the year to date, after Moscow's ambassador to London told Sky News that
Britain is now "directly involved".
Euro gold prices breached €2600 per Troy ounce as the single currency spiked down towards parity against the Dollar for the 1st time in 2 years, adding 39.1% since New Year's Eve as German newspaper
FAZ said Berlin is briefing industrial and regional leaders on
preparations for the event of war using a 1,000-page strategy called 'Operations Plan Germany'.
"The war in the east is entering a decisive phase," said Poland's Prime Minister Tusk today. "The threat of global conflict is serious and real."
Not to be outdone, North Korea's Kim Jong Un – now sending troops to support Russia and suffering the most high profile casualty to date after a General was injured in a Ukrainian strike using UK-made Storm Shadow missiles – said that "never before" has the East Asian peninsula faced a greater threat of nuclear war, blaming the USA for its "aggressive and hostile" policy.
London's Gatwick Airport was today evacuated as bomb disposal experts investigated a "suspect" item of luggage and
police destroyed a "suspect package" left outside the US Embassy.
Sweden will next week follow Finland, Norway and Denmark in updating its advice to households about what to do in the event of a military conflict.
Preliminary PMI business surveys for November meanwhile said UK economic activity is shrinking the worst since October last year with manufacturing and services-sector reports across the 20-nation Eurozone showing the steepest decline since January.
S&P's preliminary US surveys in contrast showed manufacturing activity declining the least since July while the services sector is expanding the fastest since March 2022, the month after Russia began its all-out invasion of Ukraine.
Russia's Ruble fell again on the currency market, hitting fresh 1-year lows at less than 1 US cent – and dropping towards early 2022's record monthly lows – as Ukraine said the ICBM fired by Moscow at Dnipro on Wednesday was travelling at 11 times the speed of sound when it hit.
The Islamic regime in Iran meantime said it
will activate "new and advanced" centrifuges at its nuclear research labs in defiance of the International Atomic Energy Agency (IAEA) censuring it for not cooperating with its investigators.
Five paramedics were killed in Israeli airstrikes against Iran-backed Hezbollah in southern Lebanon today, while health officials in Gaza said a shortage of fuel will force the reduction or suspension of services "within 48 hours".
"There is no equivalence – none – between Israel and Hamas," said outgoing US President Biden overnight, rejecting the ICC's arrest warrant against Israel's Netanyahu for war crimes including starvation as "outrageous".
Gold priced in Dollars ended London trade up 4.8% from last Friday, its strongest weekly move since March, while the UK gold price added 5.8% – its best week since the Brexit referendum was called in February 2016 – and Euro gold up 6.0%, its best week since April.
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industrially-useful silver also rose but badly lagged the 'safe haven' precious metal, adding just less than 2.0% for the week to fix at London's midday auction around $31.27 per Troy ounce.
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