'Game Changer' For Gold In UK As New Regulation Favours Gold

Our friend Stephen Flood's GoldCore reports this morning:

Gold may also receive safe haven buying from the LIBOR scandal and crisis which deepened yesterday when Bernanke’s testimony conflicted with the Bank of England’s King and Bernanke appeared to admit that Fed employees were involved in the manipulation of Libor.

Bernanke said yesterday that “[In 2008] there was active effort to report to all relevant policy makers.” While King had said that “the first I knew of alleged wrongdoing ... was two weeks ago”.

Citi, Bank Of America, and JPMorgan appear to be set to be dragged into ‘Lieborgate’ as Congress is expanding the Libor probe to the big three U.S. domestic banks.

Also extremely bullish for gold was Bernanke’s admission that Libor is “structurally flawed” and an international effort would be needed to restore the rate’s credibility as the leading benchmark for mortgages, derivatives and corporate lending around the world.

The Libor scandal is further eroding confidence in the global financial system and will lead to safe haven gold demand.

To read the entire post follow the link below:

July 18, 2012 (GoldCore)

http://www.goldcore.com/goldcore_blog/game-changer-gold-uk-new-regulation-favours-gold