-- Posted Friday, 1 April 2011 | | Source: GoldSeek.com
The gold price is trading in a relatively tight range between €1,005 and €1,015 and in the dollar $1,420 and $1,440 and has remained there for the lat week. The longer we wait the bigger the subsequent breakout. You must decide which way it is going to move! We repeat; with gold we have to stop waiting for gold itself to move. Its moves could be gold moving or the dollar or the euro moving.
This morning the gold price was Fixed at €1,013.21 and in the dollar at $1,434.50, The dollar strengthened slightly to $1.4096. Yesterday, the gold price Fixed in the afternoon at €1,014.52. The gold price just ahead of New York’s opening was trading down to $1,420.3 but we do not see that as a solid move, but one that can reverse in a heartbeat. The p.m. Fix will dictate where gold goes in New York today, we feel.
Gold - Very Short-term
The gold price is still consolidating but should see a positive day in New York after the low point at which New York opened. We expect today will see more volatility together with an upside bias.
Silver – Very Short-term
Silver was Fixed at $37.63 trading at $37.25 ahead of New York. We expect it to bounce with gold today in New York.
Silver & Gold Price Drivers
The world changes from day to day. The Syrian government is on the back foot with a vague promise to look at the emergency laws in position for so many decades, but the President is not believed. The Kuwaiti government has resigned. The Yemeni government is on the brink of collapse now. Whose next in the Middle East?
Until these revolutions affect the oil market directly, we believe they are having little impact on all market prices. We feel that they are also irrelevant to the precious metal prices too. 
What they do signify is the rising level if instability and uncertainty. It seems that governments have so much power that their populations hold them responsible for the bad times too. They want change, but find themselves head on with governments of a former generation. Politics has extremely limited capabilities when it comes to improving economic climates, as we are seeing now.
The Eurozone is back on the screen today as Ireland finds it needs far more money to rectify its debt situation. With merger talks amongst Spanish banks failing as new problems emerge, we see Spain joining the list of potential handout seekers.
It is only a matter for time before Portugal goes cap in hand to the E.U. Despite this the foreign exchanges find that they still prefer the euro as the dollar continues to weaken, haltingly. We have looked carefully at the silver market this week and will be publishing articles in the next issue of both the Gold Forecaster and the Silver Forecaster on Silver’s demand and supply seen in the last couple of years and the changing industrial demand for silver. We also look at whether ‘silver will become money’, in these issues.
[The Gold Forecaster and Silver Forecaster are a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.] Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 1 April 2011 | Digg This Article
| Source: GoldSeek.com
