-- Posted Tuesday, 7 September 2010 | | Source: GoldSeek.com
Asia left gold at $1,250 then London took it down a notch to Fix at $1,247.25. In Europe economic activity is being stated as slightly better than thought, with the U.S. looking forward to more Tax breaks and infrastructural developments, so we all hope that there will be a better recovery than appears to be the case right now. However, as we have said before in these pages, the gold price won’t move on such news, unless it is direct strong and then discounted in the markets. As we saw before the ‘credit crunch’ a healthy U.S. economy dragged the Dollar down alongside the Trade deficit, bolstered only by Chinese surplus investment in U.S. Treasuries. Will that be the case in the future?
Have you noticed how the gold price is holding onto the $1,245 to $1,250 area so persistently, through low activity and high activity? This confirms the view that large buyers with ‘limit’ buying orders are in the market taking all offers in that area. It is clear that new demand that wants to push these orders out of the way, must bid higher than them to get the gold they want.
We are developing the theme of the last article [Subscribers can access our archives] on “The Yuan goes Global” in the current issue of the Gold Forecaster, and commenting on “What will happen to gold in a slow recovery”. These will not be issued in full as short articles to gold sites in general. To read these important pieces and to find out our preferences and for our full range of weekly forecasts please subscribe through: - www.SilverForecaster.com or www.GoldForecaster.com for our weekly newsletters.
Gold - Very Short-term
With the gold price struggling to hold at $1,250 today we expect the gold price to show a stronger bias in view of the return from holiday to the busy season. However, please note that we are moving back into the higher risk area for the gold price again.
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Silver – Very Short-term
Silver was knocked back to the $19.65 area again, but not surprisingly so, with its great performance of the last week. Silver still looks better on the charts than gold. We expect the silver price to show a stronger bias again today after a Fix of $19.65 as the U.S. comes back from holiday.
Gold Price Drivers
We saw clear evidence yesterday that the buyers in the market were not price chasers, but accepted offers at the price limit they set in the market. We are sure that they took up all the gold that was made available again. But from today on they won’t have the market to themselves as it gets a bit crowded with the developed world’s gold season getting into full swing. Watch today to see if they are quick off the mark to get into the gold price after London saw it pull back slightly. They will have to pay up to get in. Perhaps they will pause before they do. We watch with interest.
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Regards,
Julian D.W. Phillips
-- Posted Tuesday, 7 September 2010 | Digg This Article
| Source: GoldSeek.com
