With the ongoing political uncertainty and economic crisis in Italy, it is feared that if the current political and economic situation is not resolved the country might follow the current economic situation of Greece, Portugal and Ireland.
One positive move seen by all Leaders in the European Union was Berlusconi’s resignation, although feared to be to late to make a difference this crisis
Mr Berlusconi told President Giorgio Napolitano that he would resign after seeing through austerity legislation, which could take a month to approve. But right now Italy’s economic situation is being overshadowed by Greece. The Prime Minister of Greece, George Papandreou agreed to abdicate his position and now a new coalition government is being formed to commend an EU-IMF bailout package which is believed to help alleviate its worsening economic situation. With €8 billion payment due in December for the EU and International Monetary Fund, and Greece desperately needs to avoid bankruptcy,
Never the less Italy’s popularity over investors and high bank officials in the market had been on lower heights, with its 10-year government bond yields widened to 488 basis and its one-year bonds accelerating to 6.1%, Italy is losing its markets trust that they will be able to pay their debt. Its with these changes in the markets that people will turn to gold investing, if the trust in Italys market is not restored, these weakened government bond yields have pushed the gold price rates up today see the gold price chart to see todays changes