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King Dollar still reigning

One might have expected the metals to get a sizable pickup yesterday, given the deficit news, problems in Europe, and continuing evidence of relentless Chinese demand for gold

Aishwarya Gupta

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The financial messaging provider for financial institutions and corporations in 209 countries will increase its headcount in the region by 53 percent by 2015.

Gold and silver keep bumping up against resistance in the face of renewed uncertainty in the markets. Talk yesterday of open disagreement between eurozone politicians and the IMF on the thorny subject of Greece caused angst among traders, with anti-austerity protests expected across Europe today.

Across the pond, new figures show the US government’s budget deficit for the month of October increased by 22% from a year earlier – the fourth largest October deficit ever. Washington’s penchant for ever-greater borrowing knows no bounds.

And of course, as we repeatedly emphasise, its long-term borrowing needs are even greater than official figures would have you believe – because of future welfare liabilities that are not counted towards this official number. Taking these into account and operating on the basis of the “Generally accepted accounting principles” (GAAP) that private companies must heed, John Williams of ShadowStats places the real 2012 deficit at $7.0 trillion.

Among the states, California tends to take the lion’s share of media attention when the subject is fiscal dysfunction. But though California has the largest population and economy of any state – and hence, the potential to turn into the biggest disaster – Illinois is probably the leader in this particular race to the bottom. Any form of bailout for such states would be hugely controversial, which will only add the pressure on the Federal Reserve to run the printing presses at full blast.

One might have expected the metals to get a sizable pickup yesterday, given the deficit news, problems in Europe

, and continuing evidence of relentless Chinese demand for gold (as well as Indian festival season buying). But the dollar continues to hang tough in the FX markets as a result of so-called “safe haven” bids.

The Dollar Index has risen everyday for the last week, up 0.06% to 81.08 yesterday. Budgets across America may be bleeding red, but people’s long-held belief in the supremacy of “King Dollar” is hard to change. Change it will, but for the moment, the illusion continues.

via ‘King Dollar’ hard to dethrone | Gold Price News.

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commodities

Gold rush hits Thailand as prices surge

The value of gold has rocketed by Bt7,000 per baht weight since the beginning of this year, generating returns of over 20 per cent.

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Photo : Adam Jones

People flocked to sell their gold at China town. The Gold Traders Association announced the buying and selling prices of gold has increased by 50 baht to a historic high.

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commodities

Thailand’s rice exports slump to decade low

Thailand could drop to the world’s third largest rice exporter, after Vietnam and India, as Thai rice exports slump to a decade low of 6.5 million tonnes.

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The strong baht makes it harder for Thai exporters to compete with other top producers like Vietnam and India.

The Thai Rice Exporters Association cut its projection for 2020 rice exports from 7.5 million tonnes to 6.5 million tonnes, the lowest in a decade.

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commodities

US oil down more than 9% in Asian trade

Prices have collapsed in recent weeks as demand for the commodity evaporated owing to lockdowns and travel restrictions imposed worldwide to fight the virus.

Agence France-Presse

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US oil prices fell heavily Monday on renewed concerns over storage capacity as the coronavirus throttles demand, even as producers start slashing output to boost markets.

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