-- Posted Tuesday, 26 October 2010 | | Source: GoldSeek.com
Asia held the gold price steady as did London, bringing in the first a.m. Fix at $1,334. The dollar is holding relatively steady at $1.3920 but ‘feels’ soft. We suspect that it is being helped to hold this level. If this is true, surplus countries may well take this opportunity to sell dollars into this perceived strength. As to gold, it is moving inversely to the dollar still, but is now seeing strong buying not only from China but from India as they have accepted these prices. They also see that gold doesn’t want to fall much further. Any prices in these regions [+$1,350 and less] is a good place to buy. Gold has been falling in the U.S. in Europe’s afternoons. With physical demand still dominating the gold market, supplies will be easily absorbed. Any new demand on top of this will have to pay higher prices to get their gold. We now hear that Greece may default on its debt in three years time. We are sure that it will be bailed out again, but will see its Eurozone membership come into question. Britain could well now dip into a double dip recession as growth has fallen there heavily.
What is becoming increasingly significant is the polarizing of positions by China and the U.S. Unfortunately we are seeing a growing confrontation, a situation that should lead to an exacerbation of the problems the developed world is facing. Unless this changes and we have no reason to believe it will, we expect increasing volatility and uncertainty in the days that lie ahead in all markets. This is gold positive.
Apart from covering the gold markets Gold Forecaster and Silver Forecaster addresses macro-economic factors from oil to currencies covering subjects that directly affect or influence the gold price. It is a “must-read” for all who want to understand gold. It helps you understand the why of the gold & silver price moves. [We also cover platinum in the Silver Forecaster too]. Without understanding can you successfully profit from these markets? Subscribe through www.GoldForecaster.com & www.SilverForecaster.com
Gold - Very Short-term Gold should continue to consolidate in the current trading range today in the U.S.
Silver – Very Short-term Silver should follow gold and consolidate in the current trading range today in the U.S. with a stronger bias than gold on the upside.
Gold Price Drivers
In trying to pressure China through a ‘coalition’ with its neighbors the U.S. has set the tone for the future of the global currency markets, international trade and the political scene. One hoped for a transition where the U.S. would at least share the world stage with the Eurozone and Asia, but we now accept that it won’t let go of the global reins quietly.
The problems of Sovereign debt, global growth, currency stability and the shift in wealth to the east will worsen as a result of this posture. We have just written the full article [non-subscribers get the truncated version] on “Has the gold price peaked?” To receive it subscribe to Gold Forecaster.
Regards,
Julian D.W. Phillips
-- Posted Tuesday, 26 October 2010 | Digg This Article
| Source: GoldSeek.com
