-- Posted Thursday, 13 January 2011 | | Source: GoldSeek.com
Gold in Asia and in London is holding overnight levels of around $1,385. The lack of movement indicates that buyers and sellers are moving into balance. The euro strengthened in the face of a successful Portuguese government debt auction to $1.3156.
Today sees Spain coming to the market and Italy tomorrow. We believe that all three auctions will meet with success, albeit at higher interest rates than in the past. With China and Japan as well as the E.C.B. supportive of these auctions, we have seen a good public relations exercise that calmed the markets, but leaves the underlying problem unresolved. Over the weeks and months to come, Eurozone debt problems will continue to worry markets and sap confidence. This will continue until these debts are either lowered or government income rises sufficiently to make such debt levels manageable. This will take many years, if it is to happen at all. It tells us to expect European gold investors to keep their grip firm on the gold they have now. Gold was Fixed in London at $1,380.75 and €1,050.24.
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 is holding at higher levels than expected showing remarkable resilience, so today we still prefer to err on the side of caution and expect to see an easing in New York today, but not by much, yet.
Silver – Very Short-term
The silver price is holding at higher levels than expected showing remarkable resilience, so today we still prefer to err on the side of caution and expect to see an easing in New York today, but not by much, yet.
Gold Price Drivers
While China is taking a greater portion of our financial scenes each day it seems to us that the sheer size of China and its continued growth has not been factored into the world economic scene even now. In an attempt to rectify that we are publishing an article on “The coming flood of Yuan and Chinese Gold Demand”.
One of the consequences of profit driven capitalism in the past was the relocation of manufacturing to the lower cost China. U.S. corporations that did that have enjoyed better than ever profits, but in the process have educated new, Chinese, lower-priced competition that is set to overwhelm us all in the future. The enrichment of China and its arrival on the world scene as the largest world economy by 2020 at the latest [we would not be surprised if this happened even before 2015], is set to send out a financial tsunami that will change they way we think and invest. We will follow this all the way in our newsletters.
We are also issuing a series on “The Financial Earthquake” that lies ahead in the years to come, in our newsletters. We suggest you subscribe to the Gold Forecaster and Silver Forecaster where you can read these. It is there that we will we will detail all the factors that will join to jeopardize the global economic landscape in 2011, keep you in touch with their progress and give you our forecasts for 2011.
Regards,
Julian D.W. Phillips
-- Posted Thursday, 13 January 2011 | Digg This Article
| Source: GoldSeek.com
