-- Posted Friday, 12 November 2010 | | Source: GoldSeek.com
After the Festival of Lights in India, called Diwali, Indian buying of gold will pause. The dip in the gold price of around 2% is a healthy and normal market correction. The knee-jerk $: € moves led by traders, has taken the gold price down in the dollar. The dollar, over the last week, has moved from $1.424 to the current $1.36.17 at the moment. This is a 4.27% move in the dollar against the euro. Gold has pulled back from its dollar peak of $1,424 to the current $1,382 a 3% move leaving the gold price higher in the euro.
Just a reminder that the global gold market is what drives the gold price, not one country’s events, no matter how large. One influence on gold after New York closed and before London opened was the strong pullback in Shanghai, where markets suffered a 4% fall. Europe is following through on this fall and it looks like New York will face a correction too.
We take such moves as normal, rather like the waves ebbing and flowing constantly.
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. This week and next, we will cover the concept of gold being used as a reference for currencies. Only part of it will be seen in the public domain. It is a “must-read” for all who want to understand gold and silver. 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?
Gold - Very Short-term
Gold pulled back overnight, heavily, so we may see it stabilize or bounce today.
Silver – Very Short-term
Silver pulled back overnight, heavily, so we may see it stabilize or bounce today.
Gold Price Drivers
Friday is usually the busiest day of the week for gold and silver. With the dollar stronger today, precious metals may well remain restrained as market all over the world suffered setbacks today.
While the G-20 meetings invariably disappoint, this time round that disappointment comes at a time when real progress was needed to improve global economic affairs. Instead what we are hearing is that national interests are undermining global interests. Discord at the G-20 has described a future that looks like being harsh on many nations. We have just read reports from economists that are almost painfully optimistic, describing a hopelessness that surprised us. When global discord appears, history shows it must run a bad course before things get better. It is akin to a move from summer to winter economically. This is precious metal positive though.
We are a newsletter that will specialize in this aspect of gold, so subscribe through www.GoldForecaster.com & www.SilverForecaster.com
Regards,
Julian D.W. Phillips
-- Posted Friday, 12 November 2010 | Digg This Article
| Source: GoldSeek.com
