-- Posted Wednesday, 27 April 2011 | | Source: GoldSeek.com
Yesterday morning’s Fix was at $1,505, but in the afternoon in London and morning in New York it dipped to $1,497.00. In Asia and London’s morning ahead of the Fix it was trading at $1,505 again, slightly lower in the euro at €1,028. The dollar lurched lower to $1.4663 pointing ever downwards. We cannot emphasize enough that rising dollar gold and silver prices are about a falling dollar not rising precious metal prices. Emotional level in financial circles are rising in the States and making it difficult to see what’s really going on in dollar financial markets. U.S. markets will react to whatever Mr. Ben Bernanke, Chairman of the Federal Reserve says today.
At the Fix in London gold was set at $1,508.00 $3 higher than yesterday morning, but then the dollar has fallen by that amount against gold, whereas the euro has not. In the euro it fell to €1,027.32, almost the same as on Friday and yesterday. Gold is not moving in the euro.
In silver, prices also held close to Friday’s and yesterday’s levels with the price slightly down at $45.54.
After the Fix, but ahead of New York’s opening gold held at $1,509.25, but the dollar weakened to lower than Friday at $1.4663. This left gold in the euro at €1,029.29, barely changed on yesterday.
Volatility may well strike up again as the Fed goes public.
Gold - Very Short-term
The gold price is now in a volatile zone inside the U.S. but not outside it. Today, may well be a high risk day either way.
Silver – Very Short-term
While silver is holding above $45, today should see more volatility than gold will in New York today. Today’s market may well not be for the shy.
Silver & Gold Price Drivers
There are really great opportunities for investors out there, who read the current markets correctly. The dollar is now at $1.47 against the euro. In the euro gold is standing at €1,028 in the upper half of its trading range and well below its peak of €1,065. This means that gold is consolidating at these new higher levels. The longer it continues to consolidate the more likely we are to see Indian demand, in particular accept that a new ‘floor’ price of gold has been made in the Indian Rupee [not the U.S. dollar, because they see the Rupee as the currency in which they gauge gold. Meanwhile investors in the U.S. can only see the gold price in the U.S. dollar, just as they can only see the oil price in the U.S. dollar. Amazingly the U.S. is very focused on events in the U.S. and not outside of the country. So they miss the very real fact that the oil price in the euro is not rising at all. It is rising in the dollar because the dollar is falling. Stand where oil producers stand and you can see why they are cutting production to hold prices up. They see even steady prices in the U.S. dollar as cutting their revenues unfairly.
We are producing an article on this in the next issue of the Gold Forecaster and the Silver Forecaster for subscribers [to subscribe go to www.SilverForecaster.com & www.GoldForecaster.com] where we show you just what is happening that is being missed inside the U.S.
Today could well be a high risk day for precious metals as well as a host of other markets as Mr. B. Bernanke faces the TV cameras. His words will almost immediately impact markets and traders out there have their fingers poised above their buttons. Volatility may well be short-lived but it could be dramatic. What he says is predictable and will be unlikely to disturb markets long-term, but short-term volatility will reign.
[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, 27 April 2011 | Digg This Article
| Source: GoldSeek.com
