-- Posted Monday, 20 December 2010 | | Source: GoldSeek.com
The gold price recovered this morning in London to Fix at $1,381 after Friday’s p.m. Fix of $1,368.50. With Asian demand being the new kid on the block and Indian demand muted on Friday because of their holiday, forces that history has not factored in before are at work here. While in the developed world there may be a case to answer that this time of year sees a setback, we would be uncomfortable in saying that it will be much, if at all. Asia doesn’t recognize the developed world’s festive season and the influence on the gold price is moving eastwards.
With Ireland’s credit rating not far off Junk Bond status now, the Eurozone worries continue. What is most worrisome is the fact that when an individual country or bank cannot repay its loans, the lending banks number in their hundreds. If two or three Eurozone nations go down, then an awful lot of banks may go down with them. Hence the fear is now that the Eurozone may have expressed a political willingness to have a sufficient rescue plan, but will they really have the capacity and then willingness to rescue all the Eurozone nations in trouble when push comes to shove?
As New York opened today, the gold price was holding its gains. In the euro gold rose from €1,035.57 to €1,051 showing that the rebound is international. Apart from covering the gold and silver markets Gold Forecaster and Silver Forecaster are structured in a way that gives perspective to macro-economic factors from oil to currencies covering the pertinent global 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]. Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
Gold - Very Short-term
Gold looks like it will continue to consolidate with a stronger bias today in New York.
Silver – Very Short-term
Silver is holding above its Fix today of $29.21 and looks as though it will hold above $29 today.
Gold Price Drivers
The seeming political accord that enabled the ‘Tax Bill” to pass into law last week appears to be dissolving into the usual discord now. With such a political stalemate in the developed world, the prospect of U.S. [or European] politicians governing as effectively as is needed right now, seems remote. These are not the sort of financial climates that will see gold fade away into a bear market.
We will be reviewing 2010 and forecasting what will happen to gold and silver in 2011 in the next few issues of the Gold Forecaster and Silver Forecaster, but will limit these forecasts to Subscribers. So we do suggest that you subscribe to them on the links in their name here. We do believe that gold will be more than interesting in 2011!
Regards,
Julian D.W. Phillips
-- Posted Monday, 20 December 2010 | Digg This Article
| Source: GoldSeek.com
