-- Posted Wednesday, 13 April 2011 | | Source: GoldSeek.com
The London morning Fix was strong, yesterday at $1,461.25 then fell to $1,450.50 at the p.m. Fix. More importantly the morning Fix in the euro was at €1,011.11 and at €1,001.66 in the afternoon. We see this as selling from U.S. investors who look at dollar prices alone. Overnight, the Asian markets bought the ‘dip’ and took the price back up to $1,458.80 showing the resilience of Asian demand. Today’s morning Fix was set at $1,458.00 and at €1,006.49.
The dollar was no stronger though at $1.4493 with the ‘tide’ for the dollar an ebbing one still.
In silver, prices were well behaved with silver Fixing at $40.44 and holding $40.40 this morning. In the euro we saw a Fix at €27.97 yesterday and it trading at €27.87 this morning.
The mood of the market is now, “holding steady, nerves steady, now?” The market is looking up towards $1,500 still and is losing its fear of further falls.
After the Fix, but ahead of New York’s opening gold was seen holding the $1,461.40 level.
Meanwhile, Silver held at $40.47 much the same as yesterday. The dollar stood at $1.4505.
Gold - Very Short-term
The gold price has almost completed its re-grouping, so we expect a day of consolidation with a positive bias in New York today.
Silver – Very Short-term
The silver price is holding steady and looking robust. We expect prices to continue to hold steady but show a positive bias, in New York today.
Silver & Gold Price Drivers
What a revealing world we are now living in. In the U.S. government is in near paralysis mode with its considerable budget deficit. In the past we have highlighted how nations will always place their interests well above those of the globe, even though the only way to resolve both global and national structural problems is to cooperate fully. The same is true in the U.S. with the Federal government deficit. However, we see partisan politics taking what looks like a reckless game of chicken over the resolution of the unacceptable deficit. Would you lend to a client who took reckless risks for his own sake on your debt? It seems as though U.S. concern for creditors is wanting? Is it any wonder that the dollar is sliding? In the Gold Forecaster’s next issue we look at why bank and debt crises are favoring further rises in gold and silver. We will also cover how precipitous the British banking report and recommendations will be on the global banking system if nations follow suit in actually implementing it.
Asian demand is a difficult part of global demand for gold to keep writing about, because it just keeps on coming with no notable features except its constancy. We know that Indian demand alone will rise another 33% in the next few years from its current record levels of 930 tonnes, but China is the real shocker in that the numbers are just overwhelming over the next decade. Combine the two and you have enough demand to almost replace current developed world demand and still see a rising gold price.
Now add to that the ongoing, rising, financial stresses in the developed world and rising global inflation and you have conditions that will keep both gold and silver center stage for the foreseeable future.
[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 Wednesday, 13 April 2011 | Digg This Article
| Source: GoldSeek.com
