Gold traded for most of last week in a range between $1295-$1320 as economic and political tensions mounted around the globe. Trading hit the $1340 level the previous week to reach a new four month high in response to the suspension of the shares of the largest bank in Portugal, Banco Espirito Santo, after a collapse of its share price by nearly 20%. Portuguese national bonds hit nearly 4% as concerns grew over the stability of the Portuguese economy and the lack of confidence was spread to other European countries as well. The Banco Espirito Santo shares rebounded later in the week as it sufficiently rebuffed concerns over its ability to meet capital requirements, but questions linger about the health of the Portuguese economy and that of Europe as a whole.
Meanwhile, a commercial jet was shot down over Ukraine killing over 300 passengers and crew. The Malaysian Airlines jet […]