-- Posted Wednesday, 20 April 2011 | | Source: GoldSeek.com
What a sight, gold over $1,500! A new record! But note well, that gold has not reached its recent high in the euro of €1,065. With the euro at $1.4436 gold will have to rise to $1,537 to reach that level. The dollar has resumed its recent weak trend.
Gold was holding over $1,500 ahead of London’s opening and when London opened the gold price rose to $1,503 before the Fix. At the Fix in London gold was set at $1,505.00. In the euro it fell to €1,037.93, down €4 on yesterday afternoon’s Fix.
In silver, prices took off overnight and in early London dealing and hit $44.46 then rose slightly to $44.49. The silver Fixing was at $44.79, $2 up from yesterday. In the euro we saw a Fix at €30.84.
After the Fix, but ahead of New York’s opening gold held at $1,501.85, but the dollar weakened back to $1.4527. This left gold in the euro at €1,033 still lower than yesterday.
Meanwhile, Silver also held its high ground at $44.70.
Gold - Very Short-term
The gold price ran through $1,500 but may well now look around at these new heights until comfortable with this level, in New York today.
Silver – Very Short-term
Silver ran forward yesterday with gold and should continue to show a positive bias, in New York today.
Silver & Gold Price Drivers
Gold is now over $1,500 for the first time ever. In Europe it has not yet overtaken recent highs. The new high is about the weakening dollar not nearly so much about the rising gold price, yet. The investment world still has not accepted that these two precious metals are exhibiting monetary qualities. While government responses to the S & P warnings have attempted to reassure investors in the dollar over U.S. debt, this will not be enough to resuscitate the dollar. After all, the dollars seeping from the U.S. [via the constant trade deficit] have to be countered by foreign surplus investment from China, oil producers, etc. Hence the dollar is not just at a tipping point but has slid over to the downward side. Is the U.S. too strong to be hurt by debt-dollar problems or will it too, like us all bowed into conservative debt management by the crisis that is now in the process of opening up.
The failure by the Eurozone monetary managers to resolve the Eurozone debt crisis has virtually destroyed the euro’s chances of being a global reserve currency, so the monetary world is in disarray with currencies simply being what you use in global trade. It is hoped that when the Yuan comes onto the global stage it may provide a currency that will hold its value, but the manipulation of even that currency by the Chinese monetary authorities, may make users cautious to trust it too much. It’s far more likely that an index will be used to value currencies too. If sanity prevails, that index will include gold. But do we live in a sane world?
Meanwhile gold and silver will continue to be recognized as defining value better than anything else. We will issue an article on how the U.S. and Eurozone debt problems will continue to benefit the precious metals for a long time to come, in the next issue of the Gold Forecaster and Silver Forecaster.
[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, 20 April 2011 | Digg This Article
| Source: GoldSeek.com
