-- Posted Friday, 18 June 2010 | | Source: GoldSeek.com
"Gold is at a new record high at $1,260 having broken up out of resistance at $1,250. The air is resistance-free up here. We are getting to the point where it is not a matter of how high it will go, but why is it going there? We have to understand the financial demand for gold now [Which is where the Gold Forecaster specializes and discusses in all issues].
As Spain now joins the list of nations, in Europe, [plus the U.K.] take measures to cut their deficits amid signs that growth will certainly suffer in a world where the recovery is now turning L-shaped. Gold will rise in deflation and uncertainty. The trouble is first, the banks messed up and now it’s governments who have. There’s no one after them left in this financial system. And the market is not buying the hype telling us, ‘all will be well’.
Silver has broken up to $19.20 up nearly a $ but has a long way to go still, to ‘catch up’ to gold.”
Gold - Very Short-term
It’s Friday, gold is out of the trading range that has held it down for a few weeks. Next week should see some interesting developments. The negative news that is good news for gold came today with Greek bonds being downgraded to ‘Junk’ status. Next week sees gold in new territory.
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Silver – Very Short-term
Again we should see silver attempting to track gold still. We do need to see more investment demand for silver, through the holdings of the Silver Trust to make this happen.
We will be addressing the issue of “Is Silver de-coupling from gold” shortly, in the Silver Forecaster newsletter.
Gold Price Drivers
As we are now fed hope from politicians and the I.M.F., Moody's Investors Service this week downgraded Greece's government bond ratings to junk status of Ba1 from A3, reflecting its view of the country's medium-term credit fundamentals. "….. the macroeconomic and implementation risks associated with the program [I.M.F. & E.U. rescue package] are substantial and more consistent with a Ba1 rating." Will it be any better for the other debt-distressed nations? This and poor numbers on the U.S. economy has increased uncertainty to a turning point right now. Hope is declining too!
Regards,
Julian D.W. Phillips – www.GoldForecaster.com
-- Posted Friday, 18 June 2010 | Digg This Article
| Source: GoldSeek.com
