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The spike in the gold price, which has driven prices north of the $1,500 per ounce mark, has been aided by the billions of dollars let loose by the easy monetary policy both here and on the other side of the Atlantic, where the Federal Reserve unleashed an additional $600bn (371.3 bn) in quantitative easing last year.

But that support is about to end. Although another round of easing remains possible later in the year, for now the markets are nervously waiting to see what happens when the programme ends in the coming weeks.

Some fear that the end of easy money spells the end of the gold price rally.

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The volume of high street sales was flat in June compared to a year earlier, according to the Confederation of British Industry (CBI).

The CBI’s latest Distributive Trades Survey, which spans the period from May 27th to June 15th, reveals that 33 per cent of retailers saw sales volumes increase on a year ago, while 34 per cent reported a fall. The resulting rounded balance of -2 per cent is the first time in a year that sales have not grown (-5 per cent was recorded in June 2010) and compares with +18 per cent last month.  

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Politicians on both sides of the Atlantic are “playing with fire” by failing to resolve their debt disputes, the International Monetary Fund warned as it trimmed its forecast for world economic growth.

“You cannot afford to have a world economy where these important decisions are postponed, because you’re really playing with fire,” he said.

The IMF now expects the world economy to grow by 4.3% in 2011, down from a previous forecast of 4.4%. It lowered its estimate for US growth by 0.3 percentage points, to 2.5%. Germany, however, is now expected to grow by a vigorous 3.2%, up from 2.5%.

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— Corpus Christi Hispanic Chamber of Commerce announces the appointment of Eddie Garcia as a member of its Board of Directors.

Garcia, a Navy veteran of the Vietnam War, is owner of E.L. Garcia Insurance Associates.

He has a Bachelor of Science degree in electrical engineering from Texas A&M University and a Master of Business Administration.

The future of Western Australia’s $5 billion-plus Oakajee port and rail development has been dealt a further blow, after a major foundation customer closed its mid-west iron ore operations.

Sinosteel says it will immediately shut down the $2 billion Weld Range iron ore project near Cue in WA, laying off 43 staff, due to ongoing delays in the development of the Oakajee deepwater port and rail lines.

The Chinese steel major said the project, anticipated to produce 15 million tonnes per annum for 15 years, was too costly to maintain while awaiting the Oakajee port green light.

The news will be a blow to the WA government which has anointed Oakajee as one of a handful of key projects. Full Post…