-- Posted Wednesday, 21 July 2010 | | Source: GoldSeek.com
Asia held gold at the $1,190 level through the opening of London, where everybody waited for the first Fix. After Fixing at $1,183 yesterday afternoon Gold Fixed in London this morning at $1,191.25 and the Euro held steady at $1.28 ahead of New York.
Market attention is pointed to Friday, when the bank Stress tests are to be published. There is a great deal of skepticism about these, as they are the largest 91 banks and exclude the small banks, more likely to be in trouble. The whole set of tests are intended as a public relations exercise to reassure the public, hopefully to restore some confidence in the banking system.
Gold - Very Short-term
While gold appears to be showing strength more vigor is needed for it to break back up through $1,200 today. We may see the market tend to weaken after New York enters the fray.
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Silver – Very Short-term
Silver was Fixed at $17.88 then traded down 3 cents before New York’s opening. Before New York opened the silver price was trading around $17.84 and looking slightly vulnerable.
Gold Price Drivers
With European bank stress tests awaited on Friday we expect the U.S. and European markets to mark time before taking the gold price forcefully in any direction. These tests are likely to paint a rosy picture, masking what in reality is a difficult credit market for banks where fears that one or more banks are distressed have reigned for some time now.
With currency markets relatively stable after the $1.23: €1 to $1.30: €1 rise of late halted. Now sitting quietly in that region the mood is one of “What’s next?”
Some may feel that because we have survived the recent crises we’re OK now. That’s a bit like the man who fell off the 50-storey building and was heard to say, as he passed the 12th floor, “So far, so good!”
We’re all getting used to hearing something dramatic about the monetary system now. Trouble is that there are so many areas that are threatening more bad news that gold has to be included in the portfolios of the prudent. When bad news comes, it hits hard and fast, leaving us so little time to make the right moves. It’s always best to be ready?
Regards,
Julian D.W. Phillips
-- Posted Wednesday, 21 July 2010 | Digg This Article
| Source: GoldSeek.com
