-- Posted Monday, 12 July 2010 | | Source: GoldSeek.com
Gold in London this morning Fixed at $1,203.75 then in the afternoon at $1,205.5 with currencies virtually unchanged on the day. Gold is walking its own road. Once New York opened, the gold price fell below $1,200 implying that traders were trying to squash the price for Technical reasons. It seems that the fundamental and Technical pictures are in conflict today, so we watch fascinated as the battle rages on. With four of the five London Bullion Banks buying gold at the Fix, gold fundamentals look strong.
Gold - Very Short-term
Technically, gold again looks soft today after finishing last week close to $1,210. The two lower Fixes gave credence to the Technical weakness but in the light of the afternoon London buying, New York could be volatile. Subscribe through www.SilverForecaster.com or www.GoldForecaster.com].
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Silver – Very Short-term
Silver pulled back to $17.85 and appears softer today. With no new news being brought to bear on the silver price we do expect a volatile day with a softer bias.
We will be addressing the issue of “Is Silver de-coupling from gold” shortly, in the Silver Forecaster newsletter.
Gold Price Drivers
The weekend allowed us all to think more on the B.I.S. gold swap. It is a very dramatic turn of events, telling us that far more financial institutions are in trouble in the system than just one or two debt ridden countries. It also tells us that if there is either a double-dip recession or another nation that slips beyond the pale in financial terms, we may see much more of this. The system has been weakened far more than even we thought.
Certainly central banks are showing the wisdom of holding gold in their foreign exchange reserves. We would be extremely surprised to see any of the Central Bank Gold Agreement signatories selling any more gold in the future.
Whether it is hard to get or not, expect gold offerings in London to be snapped up quickly in the future.
Even Russia is joining the throng in offering gold through their banks as deposits to their customers now.
There is no better way for a nation to collect gold internally than have their citizens buy gold. Then when push comes to shove, confiscate it.
Fewer and fewer people believe that gold has peaked now.
Regards,
Julian D.W. Phillips
-- Posted Monday, 12 July 2010 | Digg This Article
| Source: GoldSeek.com
