-- Posted Tuesday, 20 July 2010 | | Source: GoldSeek.com
Gold Fixed in London this morning at $1,181.50 and has held at that throughout the day, until New York came in to lift it a couple of Dollars. This was as the $:€ turned down again to $1.28 after nearly touching $1.30. As we said yesterday attention has turned from Europe’s problems to those of the U.S.A.
Even as Ireland was downgraded by the ratings agency, Ireland, Greece and Spain held successful sales of governments stocks, postponing any immediate Euro problems. Let’s be clear on this, Europe’s problems have not gone away by any means, simply put off. With the German economy showing strength, it is believed that Germany will demonstrate support for their poorer neighbors in the E.U. We feel that would be stretching the unity of Europe too far. But only time will tell on that.
Gold - Very Short-term
Because gold fell quickly we are seeing a bounce, but for how long? Gold has the potential to fall further but has strong support and buyers looking for quantity not price advantage. Investment demand is not there simply for a profit, it is there to acquire quantity. These buyers are capable of accumulating all the market has to offer, but will not chase prices.
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Silver – Very Short-term
Silver held at yesterday’s level of $17.60 and matched gold’s moves step for step. It too will bounce.
Gold Price Drivers
While all global markets are hungry for good news and will leap at such, the uncertainty, instability and general fear of the future is driving gold. The shift of the balance of power to the east is inexorable and will underming the developed world’s strength. The International Energy Agency informs us that China has overtaken the States as the world’s largest energy 
consumer. This shift adds to future uncertainties.
When such a change in power takes place everything changes. Gold is a good investment against such changes.
Regards,
Julian D.W. Phillips
-- Posted Tuesday, 20 July 2010 | Digg This Article
| Source: GoldSeek.com
