16-Sep (USAGOLD) — Gold extended modestly lower in overseas trading, as European FinMins met in Poland for the latest round of discussions on how to save the euro. Once again, nothing of real substance seems to have come out of the meeting, which has prompted the yellow metal to rebound back to the $1800 zone.

In fact, the attendees decided to put off until October the final call on whether Greece will get the next tranche of their bailout, all but assuring that Greece will be taken right to the edge of the precipice once again and the market will be on tenterhooks for the next couple of weeks. You can deduce from this decision that the FinMins simply have no sense of urgency with regard to Greece, or there is no consensus that the next tranche will or should be forthcoming. As I think the markets have made it pretty clear that the Greek situation is urgent — the upcoming dollar liquidity wave notwithstanding — it’s pretty clear what the probable reason for the delay is…

This renewed sense of concern has tempered risk appetite, which was boosted earlier in the week by more jawboning that France and Germany are prepared to do whatever is necessary to save Greece and the EU; along with a coordinated agreement by major central banks to flood the eurozone with dollars the staunch the developing liquidity crisis that is a byproduct of an anticipated Greek default.

• University of Michigan sentiment (prelim) rose to 57.8 in Sep, above market expectations, vs 55.7 Aug.
• US TIC net inflows $9.5 bln (ex-swap) in Jul, up from $3.4 bln Jun; Trsys +$16.2 bln.
• Eurozone current account (sa) -€12.9 bln in Jul, vs -€7.1 bln in Jun.
• Italy trade balance – Total €1.4 bln in Jul, vs -€1.8 bln in Jun.
• Eurozone trade balance (sa) -€2.5 bln in Jul, vs -€2.5 bln in Jun.