-- Posted Tuesday, 18 January 2011 | | Source: GoldSeek.com
Gold held its own overnight in Asia. The dollar is visibly weakening now against the major currencies of the world. How long this continues remains to be seen. We are told to expect an announcement on the European rescue package soon, after a day when European leaders failed to agree, but this may not happen until March. A correction to yesterday’s daily review – German Bunds are at around 1% with Greece up at 12%. This defines the extent of the Eurozone’s debt crisis well, we think. Oh, this isn’t the market’s “fault”. It is a consequence of political action or lack thereof over government finances. One has to ask after more than a year with these problems, why has not solution been found yet?
Fixed this morning at $1,368.75 up over $10, but it was unchanged in the euro at €1,021.46 and €1,022.98 [almost the same as Friday’s p.m. Fix] after Asia had brought it to $1,364. As New York came in it stood at $1,373 still well below the top of its trading range. Asia is remarkably consistent in its taking gold back up in price overnight.
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Gold - Very Short-term
Gold is still in high risk territory and could go either way. Be ready!
Silver – Very Short-term
Silver is still in high risk territory and could go either way. Be ready!
Gold Price Drivers
When one looks at history what happened, at the time seems so cut and dried and clear. When looking at today and tomorrow, so many things could happen that it is difficult to see matters as clearly as history will show them. That’s where we are now. A look at the Eurozone shows us a major clash between politics and money. Money demands clear cut action or face the consequence. Politics says wait until a problem is a crisis then take action, it’s good for votes. Trouble is that money demand confidence and crises destroys it. Can Europe’s political leaders find a middle way without losing votes? That’s why they are struggling right now. History will highlight the clash between politics and money and banking itself. The two, as the last three years has shown, have major conflicts of interests. This is a systemic problem that will suppurate in 2011 and beyond to the detriment of the entire global money system and to gold’s benefit.
Gold is almost anti-government as it states a non-partisan line which, like litmus paper, measures precisely without emotion confidence levels in money. So far its measure of politics and money, in this century, has made both feel very uncomfortable! How will history look at gold since the Gold Standard was dropped?
We are 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 Tuesday, 18 January 2011 | Digg This Article
| Source: GoldSeek.com
