-- Posted Tuesday, 21 December 2010 | | Source: GoldSeek.com
The gold price continued to recover in Asia and in London today lifting the gold price from the p.m. Fix of $1,380 and €1,049.83 to $1,386.00 and €1,053.43 at this morning’s Fix in London. These prices are close to the bottom end of it present trading range as the developed world prepares for its holiday season and India and China, in a different world, continues to buy gold in the festive season as their middle classes grow and their love of gold for security prompts them to continue buying.
China has stepped into the breach and will assist easing the Eurozone crisis we are told. A Portuguese newspaper informs that China is willing to invest €4 billion ($5.3 billion) to €5 billion in Portuguese government debt in the first quarter of next year. This represents a third of Portugal’s refinancing requirement. It would be quite a surprise if China took the sting out the developed world Sovereign debt crisis. Of course it is protecting its own interests in that it does not want to see the buying value of its own reserves decline. China has far more to gain by assisting the developed world than by letting it fall, but the tenuous situation and the continuing shift of power eastward favors gold. Nevertheless we are expecting to hear that Greece is shortly to receive a ‘multi-notch downgrade soon.
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Gold - Very Short-term
Again 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 $29.25 and €22.23 and looks as though it will rise today.
Gold Price Drivers
As we move to the end of 2010 we are growing increasingly doubtful that gold will fall because there is a Western holiday. While Asia is not on holiday, nor is central bank buying of gold. Add to that that the I.M.F. sold 32 tonnes of gold in October leaving it with 30+ tonnes to sell. Even selling half the amount they did in October would see them completing their sales in the next ten or so days. We believe that an announcement that they have finished selling is imminent. Therefore we see the year ending on a vigorous note for gold and silver.
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 Tuesday, 21 December 2010 | Digg This Article
| Source: GoldSeek.com
