-- Posted Tuesday, 18 May 2010 | | Source: GoldSeek.com
"Gold settling back in a correction to trade just over $1,200 after a London Fix of $1,215. Silver is standing at $18.74 in a consolidation moment.”
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Gold - Very Short-term
As Greece receives the first chunk of $25 billion rescue package the gold and silver markets have moved onto consolidation mode for the time being. It’s difficult to say how long this will last, particularly because these are structural problems facing the market. The $ Foreign exchange markets are taking the € up over $1.24 again and so the $ and gold are moving together. It is unlikely that professionals will give any coupling of gold to any currency after these moves. With central banks intervening in the currency markets in an attempt to stabilize them, professionals are taking a ‘let’s wait for the next move attitude’, for now. With no confidence returning as yet, the markets are very nervous and volatile. This is no place for widows and orphans!
Once the markets are calm, underlying trends will return to dominate the market flows, together with the usual ebbs and flows as we are now seeing.
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Silver – Very Short-term
Silver slipped back under $19,00 and is consolidating today. It’s time to build direction in a consolidation phase, like gold. Silver will remain the shadow of gold and continue to ride in tandem with it. It will continue to rise faster and fall further than gold, going forward. It’s a good time to re-assess before the next move. [Subscribe through www.SilverForecaster.com].
Gold Price Drivers
The € is looking battered and sad. While a recovery may restore emotion, it won’t restore faith. One danger is that holders of the € may test the resolve of European central banks and unload their Euros. The more they sense central bank support, the more they will unload. Let’s see if this happens? If so, the € will limp away.
Will European central banks resort to selling gold? [See above – newsletter features]
In the Far East both Indians and the Chinese watch for the right entry points, not the goings on in the West. Indians are hoping for a fall in prices, but the Chinese are only pausing at the moment.
We note that talk of a Persian Gulf single currency has returned to the horizon. If so this will create $ turmoil!
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Tuesday, 18 May 2010 | Digg This Article
| Source: GoldSeek.com
