-- Posted Friday, 3 December 2010 | | Source: GoldSeek.com
The dollar is falling faster than the euro today. Some pressure has diminished because the Spanish bond sale went better than expected. It is pointless to read more into today’s calmer market than this, because the problem is still there. Spain is passing more austerity measures to tackle their situation, but the Eurozone structure and its separate parts will remain in crisis until the poorer EU nation’s debt is lowered through re-structuring [at worst default] or throwing money at the problem [QE - postponing its impact through short-term sterilization]. What is clear is that unless the basic problems of the structure of the Eurozone are addressed fully, the problems will get worse and become insurmountable. This undermines on a persistent basis the credibility of the euro. Of course, if, as is happening, the dollar fails to convincingly address its own debt problems, the same will happen in the U.S. Then you have the world’s two leading currencies weakening at a similar pace, giving a semblance of exchange rate stability as they glide down together. Gold and perhaps one or more other currencies will reflect their fall, but for sure gold and silver will. That’s what’s happening now.
Gold Fixed at $1,391.75 [$1.75 up on yesterday morning and $2.75 up on yesterday afternoon] and €1,049.11 [€2.89 down] this morning in London with the dollar at $1.3266: €1.
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Gold - Very Short-term
Gold is pausing below $1,400 and consolidating, moving through short-term trading and dealer adjustments. Today should overall, be neutral to positive for gold. Eurozone events over the weekend may change this scene.
Silver – Very Short-term
Silver is pausing below $29.00 and sits at record levels and is moving through short-term trading and dealer adjustments. Today should overall be neutral to positive for silver. Eurozone events over the weekend may change this scene.
Gold Price Drivers
Most developed world commentators on gold and silver are riveted on the currency crisis, but far greater forces lie below the surface of the current driving the gold price. We are issuing part of an article on the development of gold demand in China and why it is about to become one of three forces dominating the gold price in the future. The full article will only be available to subscribers in fairness to them. It is called, “The Red Dragon turns Golden”.
Regards,
Julian D.W. Phillips
-- Posted Friday, 3 December 2010 | Digg This Article
| Source: GoldSeek.com
