-- Posted Friday, 31 December 2010 | | Source: GoldSeek.com
On the last day of 2010 we are seeing a gold price bettering last nights New York closing at $1,408 before London Fixed it at $1,410.25. The afternoon Fix was $5 lower at $1,405.5, but it held its € level at €1,055 in Europe. The dollar fell faster than the euro today at $1.3365 up from $1.32 yesterday. But the fall in the dollar in the Japanese Yen is now close to the bottom at Y81.29 close to the point that the Bank of Japan will intervene at. If it doesn’t then we expect to see a Y78 dollar.
Just think for a moment about the continuation of the decay in the euro and the dollar. Now ask yourself, can the world’s two most important currencies continue to fall against the soundest of world currencies [Yen, Swiss franc]? You could say these currencies are rising against them but a look at fundamentals tells you that that is not the case. With falling values being absorbed by lackluster economies in the U.S. and Eurozone, what will happen when we the developed world recovery gain traction. We expect a huge ‘shunt’ effect and inflation to take off with speed.
That’s why we expect 2011 to be a year of far greater extremes than we have seen in recent history.
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
The gold price is holding in the U.S. dollar but we expect to see it fall today or, at best continue holding these levels today in New York.
Silver – Very Short-term
The silver price is holding in the U.S. dollar but we expect to see it fall today or, at best continue holding these levels today in New York.
Gold Price Drivers
Today is a good day to look back over 2010, not simply to see what happened, but to reflect on how so many of the financial events caught the financial world by surprise. Add to that the failure of the responsible governments and banks to rectify matters on the sovereign debt front. The build up of worries and pressures in the markets will continue into 2011, sad to say. Should the developed world’s economies gain real traction, we expect inflation to race ahead in 2011/2012.
Do the ‘powers that be’ have the solutions or the power to apply those solutions? Can politics apply sufficient power in financial markets to rectify matters or is it structurally beyond them? In a more volatile and extreme world [in 2011] do we expect to see solutions or destructive crises? Will politics of finances lead the way? If politics leads the way, we cannot see the global monetary system remaining as stable as it has been in 2010. The potential discord that lies ahead makes our next issues important to you the investor as they contain our 2011 forecasts and evidence that our 2010 forecasts were very good. We suggest you subscribe to the Gold Forecaster and Silver Forecaster where such articles will appear in the future. There too, we will publish reports on companies like Coeur d’Alene [silver and gold] and other attractive junior mining companies in the gold and silver worlds.
Regards,
Julian D.W. Phillips
-- Posted Friday, 31 December 2010 | Digg This Article
| Source: GoldSeek.com
