-- Posted Friday, 19 November 2010 | | Source: GoldSeek.com
We are being told that Irish will be accepting a bailout. Of course they want a bank, not a government bailout. Thereby hangs the tale. It is important to say that we do not believe there will be a collapse of the Eurozone. What is clear is that most in the world of finance as stated by the head of the World Bank, is some reference point for value, for currencies. He thinks that gold will do the job.
In the light of the hopes for Ireland the Euro appears to be recovering, so is gold ahead of London’s opening. The gold price overnight moved up to $1,361.00 and the euro rose to $1,3706. Gold Fixed at $1,357.50 and looked looks still in its consolidation phase.
To get precise levels we anticipate gold and silver moving to subscribe through: www.GoldForecaster.com and www.SilverForecaster.com Apart from covering the gold and silver markets Gold Forecaster and Silver Forecaster are structured in a way that addresses macro-economic factors from oil to currencies covering the pertinent gold markets that directly affect the gold price and some that simply influence it. It is a “must-read” for all who want to understand why the gold price is moving as it is and why. It also aims to help you understand why currencies and today’s national economic problems are influencing the global economy and the precious metal prices [we cover platinum in the Silver Forecaster too].
Gold - Very Short-term
Gold is holding close to the top of its consolidation trading range, so may well pull back as of part of the usual ebb and flow of the gold market. Should it break through this short-term resistance it will set the tone for next week.
Silver – Very Short-term
Silver has mounted the $26 barrier again and looks robust, even in this consolidation phase. It will follow gold but with more vigor.
Gold Price Drivers
A big danger to investor perceptions is that we get used to bad news and think that it isn’t so bad and will get better. We wish that were so. George Soros tells us that conditions for gold are nearly perfect. That is sad because it does mean that global financial conditions are unstable and the investment outlook most uncertain. Greece is not receiving the Tax revenue it budgeted on in the rescue package, raising the specter of default again. Having said that, we believe it most important to say that even the developed world, in the midst of such a dim outlook, the developed world economies will remain more than a going-concern. The total global investment climate is changing and the developed world is struggling to cope with these changes. We cannot see this outlook changing. That’s why to gold price is so strong. Today’s Eurozone crisis is a classic example of this. The pressure is focused on exchange rates and the debt crisis. It is already spreading to the political zone.
The World Gold Council informs us that Indian demand is likely headed to record levels on the back of a bumper monsoon. In the west industrial demand and jewelry demand is back to best levels. This also gives us reason to believe that it is unlikely that the gold and silver price will fall significantly.
Regards,
Julian D.W. Phillips
-- Posted Friday, 19 November 2010 | Digg This Article
| Source: GoldSeek.com
