Germany's Angela Merkel wants tighter fiscal integration in Euro zone with tougher budget and dismissed possibility of massive money printing by ECB.
Issuance of common euro zone bonds as a crisis solution would breach German constitution and is thus not possible. Instead, she would like ECB to continue buying bonds of troubled euro countries as bridging solution until budget controls takes place.
ECB President Mario Draghi will defend the euro and take more aggressive action to help fight the euro zone debt crisis if governments adopt a new fiscal compact.
For full story by Stephen Brown and Catherine Bremer of Reuters, go to http://finance.yahoo.com/news/ecb-opens-door-action-sarkozy-075401417.html
Meanwhile, supporting the sentiment in gold, South Korea's central bank bought 15 tonnes of gold in November, following purchases of 25 tonnes in June and July, as central banks around the world, especially in emerging economies, have aggressively bought bullion over the past few months. "It's not a surprise, as gold seems to be the only thing central banks can buy to diversify their reserves as economic problems seem to spread around the world," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers