-- Posted Tuesday, 26 April 2011 | | Source: GoldSeek.com
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While the last weekend was a weekend of holiday, it was one day shorter in New York than elsewhere. As a result the market showed some heavy swings both ways. Asia had the run of the room for one day and took the silver price almost to $50, then on Monday when New York took over and dominated they took the silver and gold prices down heavily [gold to $1,494 and silver to $45 and the dollar to $1.4554] and raised the dollar up 50 cents. Now that the main markets are now all open [with London the main one] the gold and silver prices are recovering and reflecting a better picture of supply and demand. The euro price of gold stood where it was before the markets closed for the long weekend at €1,029 as the dollar has resumed its slide at $1.4625.
At the Fix in London gold was set at $1,505.00. In the euro it fell to €1,028.64, both almost the same as on Friday before the holiday.
In silver, prices also held at Friday’s levels with the price at $45.77.
After the Fix, but ahead of New York’s opening gold held at $1,504.55, but the dollar weakened to lower than Friday at $1.4616. This left gold in the euro at €1,029.39, €4 down on Friday.
The volatility of the weekend is over.
Gold - Very Short-term
The gold price is expected to hold current levels or show a positive bias in New York today.
Silver – Very Short-term
Silver is already rising ahead of New York’s opening and should continue to outperform gold. We expect a positive bias in silver today in New York.
Silver & Gold Price Drivers
Returning after a long weekend requires that investors re-assess their positions and the way forward. Many closed positions ahead of the weekend so that while they were away they need not watch the markets. Holding positions over the weekend while you can’t control them usually leaves you in shock on your return.
The volatility of the gold and silver markets over the weekend was due at first to Asian demand taking the price up to nearly $50 at a time when suppliers could not replenish stock until after the weekend. Once New York returned many investors believing that silver has risen too far too fast turned sellers. The slight recovery in the dollar helped with that. But as the main market, London, reflects the true global demand we are getting back to where we were before the end of last week.
The weekend illustrated the shape of geographical demand in that Asian demand remains unstoppable. This is where the real demand is coming from. In New York, driven by technical analysis the markets are profit oriented and felt that selling and put options would yield the most profit. In terms of physical demand the States is not that significant with the exception of the silver Exchange Traded Fund, the Silver Trust. London is the hub of the gold and silver worlds which is why the markets are back to where they were on Friday. This almost tells you the way forward.
Of note is the painful reality that the oil price in the dollar is not likely to decline as the dollar falls. Oil producers will attribute the falling dollar as a concern of the U.S. not anybody else. In their eyes it will lead to cheapening oil in other currencies such as the euro. So in the euro the oil price by holding at current levels is actually falling in other currencies as the dollar falls against them.
[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 Tuesday, 26 April 2011 | Digg This Article
| Source: GoldSeek.com
