September 12 (USAGOLD) — Gold is under pressure against the dollar, but set a new all-time high against the euro in earlier trading at €1374.93. The EUR-USD rate fell to a new 7-month low, ticking briefly below 1.3500 amid heightened worries that Greece is on the verge of default.

Late last week, it became apparent that Germany was putting together a plan to support its banking sector in the event of a Greek default. Today, a German government adviser acknowledged that an orderly restructuring (i.e. default) of Greek debt was indeed being discussed, in the hope that the problem might be contained.

Expectations for a 50% haircut on Greek debt have sent global banking shares reeling, dragging broader indexes lower.

• Explosion at French Marcoule Nuclear site, north of Marseille. Report of one casualty. ASN says no radioactive leak. CAC40 plunges.
• Italy sold €11.5 bln worth of bills at an average yield of 4.153%, vs 2.959% at previous auction. Bid cover was weak at 1.53.
• Italy industrial production (sa) -0.7% m/m in Jul, vs negative revised -0.8% m/m in Jun, 3rd consecutive monthly contraction; -4.6% y/y (nsa).
• India industrial production 3.3% y/y in Jul, vs 8.8% in Jun.
• Japan Tertiary Industry Index (sa) -0.1% m/m in Jul, vs negative revised +1.8% in Jun.
• Japan domestic CGPI 2.6% y/y in Aug, vs 2.9% in Jul.
• South Korea M2 +3.2% y/y in Jul.
• China M2 +13.5% y/y in Aug.
• China trade balance (USD) $17.8 bln in Aug, vs $31.5 bln in Jul. Exports +24.5%. Imports +30.2%.