-- Posted Friday, 14 May 2010 | | Source: GoldSeek.com
"Gold is running again and attacking $1,350 now, with Asia keeping prices up overnight and London working it higher, at the Fix at $1,238. Silver has yet to follow, standing at $19.64.”
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Gold - Very Short-term
With foreign exchange markets taking the € down to recent record lows at $1.2465, confidence is seeping away from the rescue package from the E.U. & I.M.F. and from Greece. Even the Portuguese government action, in the face of deep structural financial problems, appear unconvincing. In Asia, the gold price held and rose as cautious, solid buying continued there. Once London opened, European investment buyers came in calmly and took the gold price up a couple of notches, setting the tone for New York’s opening. The day looks ‘gold friendly’ after just a brief breather, while we all looked around at new territory. Silver has paused while gold advanced today, but may feel the ‘shunt’ effect later?
We expect New York to feel the pinch and chase prices higher again. Long-term investors like to buy on the rise, hoping to prove entry points were good, quickly. Shorts on COMEX should now be squeezed. But we watch physical buying to see where the price is going.
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Silver – Very Short-term
Silver is strong, but waiting for more investor demand so that it can keep in gold’s slipstream. There is no reason to believe that it will not do so, with a long way to go until it reaches its next target, spelled out in our newsletter [Subscribe through www.SilverForecaster.com]. Watch gold for the next silver price movement!
Gold Price Drivers
While many believe that the E.U. finance package should give time for countries in the Eurozone, such as Greece, Spain and Portugal to readjust their economies, so as to cut their deficits back to manageable levels, the markets are telling us that they do not believe that the governments of those countries are powerful enough to make the necessary cuts and persist until they have success. This is particularly true of Greece and Portugal, where social unrest is expected to deepen as the cuts are implemented.
It appears that money is now more powerful than politics. But politics is unlikely to give in without a deep fight and greater crisis. If this is the case, then the future step will be debt default and a fracture of global confidence in the world monetary system. This is extremely gold positive and tragic for the world. Watch this space!
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Friday, 14 May 2010 | Digg This Article
| Source: GoldSeek.com
