-- Posted Wednesday, 23 June 2010 | | Source: GoldSeek.com
"The consolidation continues as gold sits in the lower area of its trading range after moving down to $1,239 before moving up to $1,244 ahead of New York’s open and after a gold Fix of $1,243 where there were four buying banks and only one selling bank. New York opened with downward pressure on the gold price. The market remains positive as again, Asia took the gold price higher before London opened. Underlying the market’s solid mood is the realization that gold is not simply moving up in a bull market, but it is being increasingly recognized as a reliable ‘counter’ to currencies, uncertainties and instabilities. You may be impressed by George Soros’ investments in gold but we are more impressed by an investment by one branch of the Rothschild family. It has invested in the Bullion Vault, a gold trading platform, together with the World Gold Council. This is a deep statement of confidence in gold by the Rothschilds, not simply a good investment. The Gold Council’s keenness to work with them is also a statement of confidence. [We are writing an article on this in the Gold Forecaster newsletter this week that will not be published outside the newsletter.]
Silver is trying to keep close to gold still and is of its bottom at $18.85.”
Gold - Very Short-term
The consolidation is strong as it started in Asia. As we said yesterday this gold price is being moved to ensure two-way trade, not just a rising gold price. As shown at this morning’s Fix four of the bullion banks out of five, were buyers. This gives only a glimpse of the trade but we read it as positive for gold. In the next day or so, we do expect buying to move prices up gently as the consolidation progresses.
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Silver – Very Short-term
Silver continues to hold the high $18 levels, as it fights to follow gold. It is moving as a monetary metal right now, although it has got the potential to outrun gold once its fundamentals mature.
We will be addressing the issue of “Is Silver de-coupling from gold” shortly, in the Silver Forecaster newsletter.
Gold Price Drivers
Perspective is the key to understanding the gold and silver prices at the moment. This perspective is one that looks at the fundamental problems facing the global monetary system. The repair work by the powers that be, are not addressing these sufficiently to remove current uncertainty. The word ‘confidence’ is the focal point of what’s wrong. The U.S. housing market appears to be on the decline again after these powers thought that they had rectified that market. It appears not? Until confidence is restored in the housing market, employment levels have rocketed and faith in the global currency and monetary system are re-established the repairs [they need deep reformation] will not have been effected. This is the bottom line for gold.
Regards,
Julian D.W. Phillips
-- Posted Wednesday, 23 June 2010 | Digg This Article
| Source: GoldSeek.com
