Gold prices decreasing

Gold prices dropped to below U.S. $ 1,600 per troy ounce. Precious metals prices fell in trading around U.S. $ 35 per troy ounce was so touched its lowest level since the beginning of the year as a stronger U.S. dollar and the continued concerns of political upheaval in Europe.

Gold prices continued to decline as the current gold investment is no longer a primadona. Gold investment is now too risky and the equivalent investments such as stocks and other commodities. Commodity price of gold for June contract fell U.S. $ 34.6 (2.1 percent) to a level of 1604.5 per troy ounce in New York commodity exchanges. Gold prices had even dropped down to U.S. $ 1,595.5 per troy ounce. In afternoon Asian electronic market is the price of gold back down U.S. $ 12.1 (0.75 percent) to U.S. $ 1592.4.

The price of gold has risen in recent years along with the strength of the euro against the U.S. dollar. Gold is considered a safe haven from inflation or deflation makes the price had soared to the top level of U.S. $ 1,900 per troy ounce. When the new European crisis began, gold becomes the target of investors to avoid risk, so the price kept going in the last 11 years. Now the price of gold was not able to pitch alone and should be a tight fight with other investment markets.

The U.S. dollar tends to strengthen against the euro as investors considered the safest place to invest after the elections in several European countries. Especially after French President Nicolas Sarkozy who was in power was defeated by a challenger from the Socialist Party, Francois Hollande.

The fall in gold prices lead to falling prices of other metals. Silver futures for July contract fell 66 cents (2.2 percent) to U.S. $ 29.46 per troy ounce. Platinum prices also fell U.S. $ 21.8 (1.4 percent) to U.S. $ 1,508.3 per troy ounce. Palladium prices also declined U.S. $ 24.95 (3.9 percent) to U.S. $ 622.85 per troy ounce. and copper prices also shrunk 10 cents (2.5 percent) to U.S. $ 3.68 per pound.

Read More

JPMorgan for losses of 2 billion related to derivatives trading

Sharp fall in the a way of JPMorgan Chase Nell'after hours on Wall Street, with the bank that has come to lose 6.6% to $ 38.07, after closing the regular session of trading rising by 0.25% at 40, $ 74 per share. A weigh is the fact that JPMorgan, in a paper filed with the Securities and Exchange Commission, the American Consob, at the end of the day, spoke of "significant losses" related to the trading of derivatives.

The bank, as pointed out by the CEO Jamie Dimon, has recorded losses related to trade to 2 billion dollars in the last six weeks and may suffer more for an extra billion dollars in the second quarter due to market volatility.

In particular, the losses were generated by betting on derivatives (especially credit default swaps) proved ineffective, while a plane used to hedge risk "was riskier, volatile and less effective than expected." The use of so-called "Synthetic hedge," said Dimon was "poorly executed" and "poorly monitored," which has led to "a lot of mistakes, carelessness and poor judgment."

Read More

Government of Spain Buy 45% Stake in Bankia

The Spanish government eventually took over 45% of Bankia, Spain's third-largest bank by assets. The move came after concerns about the Bankia created financial equity and bond markets yesterday.

At first, the Spanish government would disburse public funds to Bankia 4.47 billion euros. But funding is changed to purchase 45% of ordinary shares Bankia.

Before the partial nationalization was announced, Prime Minister Mariano Rajoy Bankia assured that government will fully support and ensure the stability of the entire.

Bankia system. Bank of Spain said, they still must approve the conversion that also needs to be assessed together with other authorities.

After the resignation of Executive Chairman Bankia Rodrigo Rato, the Spanish equities slumped 2.8%, near its lowest level since. Bankia shares also slumped as much as 5.8%.

Yields on 10-year government bonds have an inverse relationship with prices, jumped 6% did not approach the level considered sustainable by the market.

Market turmoil also continued to occur despite the former Chief Executive Goirigolzzari competitor bank BBVA has been appointed as the new boss and the government promised Bankia will disburse funds for the troubled bank.

Last Friday, the government asked Bankia to set aside 30 billion euros of capital for their property assets. This takes the form of general rule that all property loans will be increased from 7% to 30%. Spanish banks currently has about 180 billion euro property loans in trouble.

Read More :Government of Spain Buy 45% Stake in Bankia 

Read More