by Peter Cooper, Arabian Money:
Gold and silver staged a spectacular advance yesterday, with prices up three and five per cent respectively, after Fed hints that higher levels of inflation ‘noise’ may be tolerated as the US economy recovers. But it is the deteriorating geopolitics of Iraq and Ukraine that are really going to shift precious metal prices higher from here.
The new government in the Ukraine simply does not get it. They want to sign an EU association agreement on June 27th. Their foreign minister will present a peace plan to EU foreign ministers in Luxembourg next Monday. Do they think the EU can save them from the Russsian invasion of their eastern states? Did it lift a finger over the Crimea?
Ukraine’s misjudgment Yesterday Nato warned that Russia is again massing troops on the border with Ukraine. They are not there for a summer vacation. Far from Russian-led insurgents laying down their weapons for peace the fighting in the eastern states has intensified in recent days. Is this going to be like the Prague Spring of 1968? That also came as a big shock in the West.
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