-- Posted Friday, 21 May 2010 | | Source: GoldSeek.com
"With all types of financial markets down, shades of 2007’s deleveraging are present in the market. Gold at $1,180 is holding up far better than mainstream markets. Gold’s a.m. Fix was $1,183.50 as London continues to dominate the gold markets across the world. Silver fell to $17.50 and then recovered to $17.70”.
Gold - Very Short-term
Gold remains in consolidation mode. The seemingly bottomless fall of the last few days had steadied and shown strength around $1,180. It remains to be seen whether this will hold. Friday’s in New York are usually frantic and with Options and Futures set to be rolled over next week, anything can happen.
If today holds steady in New York, we see it as evidence that the big buyers are picking up quantity again. At the moment, the gold price is still pointing towards $1,170. The ‘p.m.’ Gold Fix in London will lead the way in New York. Watch for steadiness in the market today, for we may be seeing central banks back in the markets?
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Silver – Very Short-term
Silver is staggering at $17.70 with its eyes firmly on the gold price. Get ready for another volatile day in New York! They tell me that silver traders sleep like babies, they wake up now and then crying. Repeat: - It will continue to rise faster and fall further than gold, going forward.
Gold Price Drivers
With Germany giving the nod to the Greek bailout package, the € recovered but for how long, first to $1.26 now down at $1.25. Next week will continue to see the gold market overshadowed by Eurozone problems.
A new force is striking extremely weakened [confidence-wise as well] global markets of all types. It comes from what appears to be the deleveraging seen in 2007. This caused even gold to fall at first, before it outperformed all other markets. It looks like this is happening to a much smaller extent now. Indeed, the feeling in most markets is that a ‘double-dip’ recession is just about upon us. Deleveraging will be less this time, because it was massive in the first ‘dip’. That’s unless yet another crisis strikes, then brace yourselves!
We are living in a bad news world, where solutions have given way to ‘temporary measures’. This is not the climate gold falls in. Remember the year 2000? Life was good then and gold was $275. Just compare today to then. That’s what $1,250 gold is all about.
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Friday, 21 May 2010 | Digg This Article
| Source: GoldSeek.com
