-- Posted Monday, 17 May 2010 | | Source: GoldSeek.com
"Gold is holding firm after a rest in Asia and London and could attack $1,350 again, at the Fix at $1,230.25. Silver is standing at $19.30.”
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Gold - Very Short-term
Foreign exchange markets are still taking the € down at $1.2318. While a realization that the E.U. & I.M.F. may have done their bit, the markets are not convinced. The U.S. and the E.U. may well be seen to act in concert with the U.S. shortly, to intervene in the € market to hold it up. They can use the $-swaps to do this or exercise Capital Controls if things get desperate. The worst of it is through the fears now washing through markets, confidence is dropping every moment. This strongly supports gold.
Central Banks are in there buying volume as it comes along. Indian buyers hate chasing prices and standing back. Chinese buyers are buying for far different reasons than the West. As their disposable income rises, gold is easier to buy than property in small amounts and they like to save, save, save. Gold is the best way to do this. Oh, forget the Yuan rising on foreign exchanges. We believe it will move quickly towards an global currency once their banking system is up to the task. This will be done in such quantities that it will not rise. Over time the currency will move towards a global reserve currency and to a big part of the Special Drawing Rights of the I.M.F. But that’s a few crises away. New York should take the gold and silver prices higher today.
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Silver – Very Short-term
Silver is holding ground over $19.00. It too is resting at new high levels. The mood is good there, so today it should hold. There is still 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
Matters are turning ugly in the Sovereign debt crisis. Big loans to countries are usually syndicated [or laid off with other banks internationally]. This means that while European banks carry the greatest burden of loans, worldwide banks are in there too. This is how contagion gets momentum. With the € still falling, $-swap support is in play trying to hold it up. If they can’t then this European problems gets exported. If confidence keeps falling, the € will keep falling. With the Greek Prime Minister ‘threatening’ the banks and banks under fire already, gold is in demand in the developed world as well as in the Far East. Indian buying has nearly halted because they don’t chase prices. We are now waiting for Britain’s latest budget cutbacks to see if they can convince the world that they are not in the same mess as Europe? If not then that currency will dive and maybe we will see a resurrection of the $-Premium? [More in our newsletter on this]
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
For Private Consultation contact – gold-authenticmoney@iafrica.com
-- Posted Monday, 17 May 2010 | Digg This Article
| Source: GoldSeek.com
