-- Posted Thursday, 10 June 2010 | | Source: GoldSeek.com
"Today saw a beautiful illustration of the power of very big buyers not chasing prices, but buying gold only when it comes on offer. As investors as a whole took the afternoon Fix up to $1,233.50, very large buyers stepped away from the market allowing it to fall to $1,220 at the morning Fix, this morning, in London. Since then the gold price has moved up to $1,226 ahead of New York’s opening. Silver is struggling to hold ground at $18.04 and tending to weaken while waiting for a lead from gold.”
Gold - Very Short-term
Large buyers are on the sidelines watching the action and waiting for good offers, as always. What they will clearly want to see is where will gold’s trading range drop to, at the short-term bottom we will see soon and will it hold on top of support. It’s no good if the price doesn’t produce a two-way market.
Another 12 tonnes of gold was bought by the gold ETF funds and it didn’t turn the price, so physical gold is there to buy. Consequently, we do expect a firmer day today, but not by much. It’s the large investment buyers who dominate this market, with Traders having to go with their flow.
Who are we? We are a newsletter with a 95% correct record on the Gold & Silver Prices. [Subscribe through www.SilverForecaster.com or www.GoldForecaster.com].
Silver – Very Short-term
Long-term investors have been absent while gold rose to record highs. The pattern set of late is for silver to lag then suddenly jump as if a railway carriage jumping forward as slack is taken up by the engine. This is the “shunt” effect we are seeing now. It is sitting above $18, but without more vigor from long-term investors buying through the Silver Trust will continue to see this dragging forward by gold. We will be addressing the issue of “Is Silver de-coupling from gold shortly.
Gold Price Drivers
The ‘big picture’ is still driving prices. This is no longer the traditional gold market for the gold industry, but is morphing into an investment market, again. Never has the need to understand the new gold market factors been as important as now.
We are hearing a tremendous amount of ‘spin’ from those in monetary authority, such as the Fed Chairman, Mr. Ben Bernanke and Mr. Strauss-Kahn of the I.M.F., while professionals are calling it like it is and warning us that “risks to the global economic outlook have, “risen significantly” and policy makers have limited room to provide support to growth…….most advanced economies are experiencing a “subdued recovery, as the room for continued policy support has become much more limited and has, in some [countries] been exhausted.”
This is why there is now a steady flow of investors turning to gold. This will continue to underpin the upward trend of gold.
Further to the point we made yesterday, that, “The U.S. has a worse budget deficit than the Eurozone…, we now add to that the fact that gross domestic product would rise to 102% by 2015 from 93% this year. By 2015 the net public debt will rise to an estimated $14 trillion, with a ratio to GDP of 73%. This is reported by the U.S. Treasury. What does this do to the value of the U.S. $?
As confidence wanes so attitudes to gold are changing solidly.
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Thursday, 10 June 2010 | Digg This Article
| Source: GoldSeek.com
