-- Posted Tuesday, 28 September 2010 | | Source: GoldSeek.com
New York took the gold price down to $1,292 where it stayed overnight. London’s morning did little to that price before the Fix. But then, at the Fix the price declined to Fix at $1,289 where it hovers ahead of New York’s opening. The market appears distracted by the $: € exchange rate as the Euro is falling, but so is the Dollar. So against each other the exchange rate has little pertinence longer term, but in the short-term traders will take gold along with the Euro.
Eurozone problems have erupted again. The Anglo Irish bank was downgraded and the Irish authorities are pulling together finances to save it. With an economy in recession now repayment of the rescue is going to take many, many years to repay. All of us want to hear good news of a bright future, but where can it be found? One has to face reality, which is one of the reasons why gold has risen for over a decade now, in boom and bust times. A superficial look at gold is not enough to understand where it is going.
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Gold - Very Short-term
Gold remains hesitant to cross the $1,300 line. There is every advantage to big buyers standing back to bring out sellers who may fear gold has peaked. Ahead of any dramatic news expect a mixed day today in New York.
Silver – Very Short-term
Silver pulled back to the level seen at yesterday’s Fix of $21.35 and trades at $21.2. It may well hover around that level today in New York.
Gold Price Drivers
Europe is in a muck-sweat over the crisis in Ireland today as the Anglo-Irish bank in Ireland [its largest bank] is downgraded. The debt burden of rescue efforts is vast when one considers the country is in a recession. Portugal seems to be in the same boat. This is weakening 
the Euro, but this can only be seen against the Swiss Franc and the Japanese Yen. Despite efforts to weaken the Yen, the Yen has started to climb again. Just how many currencies are trying to change their exchange rates? Each one that does so for competitive advantages in global trade departs from the principle of providing a currency that ensures internal price stability. This is gold positive, but destructive to world currency order.
Regards,
Julian D.W. Phillips
-- Posted Tuesday, 28 September 2010 | Digg This Article
| Source: GoldSeek.com
