IBT:Gold Falls as Eurozone Looks to IMF for Survival
Gold prices fell Wednesday after eurozone finance ministers said there are only 10 days left to save the monetary union from financial catastrophe.
Tuesday's meeting in Brussels produced a detailed plan for leveraging the European Financial Stability Facility so it will insure the first 20 percent to 30 percent of new bonds issued by debt-choked members whose bonds now require record high yields.
The hope is that the EFSF guarantee, which takes effect in January, will attract foreign investors and keep the now two-year-old sovereign debt crisis from collapsing the eurozone.
But officials were not sure exactly how big the EFSF would be or if foreign investors would be willing to buy eurozone bonds.
It may all be too little too late, as Rabobank said in a note, given that the cost to Spain, Italy and even France - Europe's third largest economy - have climbed to record levels that cannot be sustained.
