-- Posted Tuesday, 8 June 2010 | | Source: GoldSeek.com
"Yesterday saw heavy big fund buying as we saw at the afternoon gold Fix and followed through thereafter. This sends a strong message out to gold investors. Europeans continue to turn from the € to gold. The morning gold Fix in London yesterday was at $1,212.4. The afternoon Fix was at $1,215 with four of the five fixing bullion banks buying. This morning, just ahead of the gold Fix, gold is trading at $1,245 a rise of $30. The Fix was at $1,248 and ahead of New York’s opening is sitting at $1,243. Silver went north today from yesterday’s $17.40 to today’s $18.30 so far.”
Gold - Very Short-term
There is no reason, fundamental or technical to conclude otherwise than a continuation of yesterday’s performance in gold. Our prognosis on the shape of buying is proving correct. Never has the need to understand the new gold market factors been as important as now. Which way now? - Subscribe through: www.GoldForecaster.com and www.SilverForecaster.com
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We are a newsletter with a 95% correct record on the Gold & Silver Prices. [Gold Forecaster & Silver Forecaster newsletters will feature; “Gold – A Means of Exchange? - A Measure of Value?”, “What effect will high prices have on demand” and “What will high prices do to gold supplies” - Subscribe through www.GoldForecaster.com]. Some of these articles appear beyond the newsletter but key ones won’t!
Silver – Very Short-term
Silver appeared to be failing to follow gold yesterday, but from yesterday afternoon to this morning has seen a leap of 5.46% in the silver price from $17.4 to $18.35, where it stands now. Will it continue to follow gold? What can we expect of silver now, even as long-term investors lowered their silver holdings in the Silver Trust yesterday? While today should see silver continue to follow gold, will this continue? We discuss this in the newsletter for you. [Subscribe through www.SilverForecaster.com]
Gold Price Drivers
The U.S. and Europe appear to have gone on different roads economically. Mr. Geithner is reaffirming the U.S. economic recovery is on track [Its not a ‘V’ recovery, but an ‘L’ recovery] and will hold U.S. interest rates low until ‘full employment’ is achieved. Europe is following a path of ‘fiscal retrenchment’. Mr. Geithner is insisting that the world no longer can rely on the U.S. consumer to promote global growth. Bottom line is that the U.S. is keen to promote growth, while 
Europe is cutting government spending, while increasing debt in the hope that growth will continue on the back of the global economy. If this policy damages growth, which in our view it will, then a further recessionary bout is coming. Remember, gold does rise in deflation as we saw in the last three years. Bear in mind that the scene in the developed world is already one of fear and pre-cautionary defensive moves, just ready to run in the face of more bad news. The market’s opinion? It saw widening credit default swaps, strong demand for U.S. bonds, and saw the € fall to fresh four-year lows. This was not an expression of confidence in the situation. Confidence is sorely needed to restore growth and it is not rising.
Meanwhile, Fitch Credit ratings Agency has warned the new British government that it must increase its budget cuts, if it wants to avoid downgrading. Who next? This uncertainty continues to drive gold!
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Tuesday, 8 June 2010 | Digg This Article
| Source: GoldSeek.com
