-- Posted Thursday, 20 May 2010 | | Source: GoldSeek.com
“Asian demand is strong overnight, which took gold to $1,198, but closed it down, at $1,190. London is dominating the gold market globally, with an a.m. Fix of $1,209.5. Silver is standing at $18.59 solidly”
Gold - Very Short-term
With Gold being knocked down to $1,185 yesterday, before recovering up to $1,198 in Asia the gold markets today are more nervous and volatile than yesterday. What is clearly visible are that the two London Gold Fixes are the place where the gold price is made. This is where gold in volume, is moved. Yesterday saw gold fixed first at $1,205 then $1,195 in the afternoon at New York’s opening. The gold price is still falling towards $1,170. We would keep our eyes on the Fix to see where the price is headed now. If it is fixed higher than the market in New York New York will follow it up [or down]. We believe that central banks are dominating the demand side currently, with ‘limit’ orders at fixed levels waiting for the ‘offer’ rather than chasing gold. Perhaps they have dropped their limits to flush out quantity? This should continue.
The $ Foreign exchange markets took the € back up to the $1.2325 area and the gold price fell? So much for the link to the $! The gold price is clearly walking its own road, unrelated to currencies, which are, we believe subject to European central bank intervention. With such uncertainty, the gold price should catch its breath at lower levels. Then what?
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Silver – Very Short-term
Silver got another hiding as it fell to $17.50 following gold. A metal for the trader and the brave as it continues more volatile that gold, much more so! Repeat: - It will continue to rise faster and fall further than gold, going forward. [Subscribe through www.SilverForecaster.com].
Gold Price Drivers
Despite market interference in its exchange rates by European central banks, the € remains in trouble. It opened at $1.242 in Europe after hitting $1.219 the day before. It then fell back to $1.2343. With central bank intervention in play, currency exchange rates are not influencing gold. After the splurge of investment buying earlier in the week, buyers have stepped back, allowing the gold price to pull back to ‘fill the price gaps’. The main players in the market need to know that the gold price will hold its levels after they buy, so they are not hurt by chasing prices. This is a healthy market reaction at new high levels. But while it reflects the to and fro of price waves, it is not changing the tide of the market. Likely it will fall to far too, then turn.
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Thursday, 20 May 2010 | Digg This Article
| Source: GoldSeek.com
