Europe at present is not only witnessing the overly anticipated London Olympics 2012 but also a rally in European share prices and gold prices at the same time. ECB President Mario Draghi has put himself in a test against his own words to preserve the euro at any cost. Traders seem to have been very much optimistic with his strong phrase that is still echoing on all the markets resulting in an upward pressure on prices in the global market.

The ECB is now focused on keeping up to Draghi’s words for which the Euro zone will soon see some rate cuts, long term loans to banks as well as buying government bonds to make rescue funds available in the economy. While, ECB will look forward in buying time and confidence from the BundesBank for ECB bond purchases, it will also have to gain confidence from all of the euro nations as well according to Moody’s Investor Service. Germany France and Italy however seems to have already endorsed to Draghi’s approach.

Right after the July 26^th speech, that saw the ECB president pledge to do whatever necessary to save the economy, the Euro rose nearly 0.05% percent ending the week at $ 1.2322 against the USD. Spanish bond that had gone up to a record hitting 7.75% on July 25^th, showcased its biggest rally in seven months pushing down the 10 year yield to 6.74%.

And it’s not just the European economy that’s waiting for a new dawn of economic stimulus but the US economy is paving the race to recover from a faltering economy with high anticipation of new stimulus package from the Fed’s desk.

Firmly clinching on these new hopes of easing; gold futures climbed to a five week high on the Comex in New York that reached $1633.30 an ounce.  This has been the most active contract that rose 2.5% only this week since June 1^st 2012. Oil also rose for the fourth day on the very same stimulus speculations.  Crude Oil futures for September delivery climbed 74% to settle at $90.13 per barrel on the NYMEX.