-- Posted Thursday, 28 April 2011 | | Source: GoldSeek.com
www.GoldForecaster.com & www.SilverForecaster.com
Well, we were right about the volatility of gold and silver yesterday, but largely due to the sagging of the U.S. dollar, thanks, in turn to Mr. Ben Bernanke painting the U.S. economic economy like it is. Gold roared before the close in New York and this was carried through into Asia. Before London opened it stood at $1,530 and at this morning’s Fix was set $1,531.00 and in the euro at €1,031.60. This was $23 up on yesterday’s Fix at $1,505 but only €3 up on yesterday’s gold Fix in the euro. Gold is not moving in the euro. The dollar again has lurched lower to $1.4836 down from $1.4663 still pointing downwards. What is dramatic is that there is a 40 basis point spread on the dollar [4 cents]. This is most unusual, because a 2 cent spread is the norm. Still little is being spoken about the falling dollar in the U.S.
In silver, prices jumped by almost $3 on the day and now trades at $48.36 scattering all those who positioned themselves for a fall.
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.
Gold - Very Short-term
The gold price has renewed its upward path, so we expect New York to continue to show a positive bias today.
Silver – Very Short-term
Silver has returned to the upward path so we expect silver to continue to show an upward bias in New York today.
Silver & Gold Price Drivers
It was an excellent move by the Fed to hold a press conference. The world has been inundated with reports and implications that kept reassuring all that a ‘recovery’ was moving ahead and appeared to be gaining traction. There’s nothing like the man who is accountable painting the real picture for us. The picture he painted was a sobering one. No expectation of rising interest rates.
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.
[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 Thursday, 28 April 2011 | Digg This Article
| Source: GoldSeek.com
