-- Posted Thursday, 19 May 2011 | | Disqus
Since we last issued a report on the 17th the gold price dipped down to $1,480 but only down €5 to €1,045. The dollar: euro continues to make effective, but cosmetic changes, to the dollar gold price on a daily basis. It is the dollar that continues volatile, not the gold price as you see in the euro gold price charts.
The U.S. dollar has started to slip, but seems to be hanging onto the €1: $1.422 areas fairly well.
At the Fix in London gold was set at $1,488.75 [down $7] and in the euro at €1,045.47 [down €5] with the dollar standing at €1: $1.4225.
Ahead of New York’s opening the gold price in the dollar stood at $1,490 and in the euro at €1,046.04 down €5 and the dollar stood at €1: $1.4248.
Silver rose on the day to $35.25 up over $1 on yesterday. Silver is consolidating better than gold.
Gold - Very Short-term
The dollar continues to dominate the dollar gold price. Euro gold prices are slipping and should show a negative bias today, in New York.
Silver – Very Short-term
The dollar continues to dominate the dollar silver price plus some. However, silver should continue to show a positive bias today, in New York. Just remember, silver is volatile!
Silver & Gold Price Drivers
Gold and silver continue to consolidate around current levels. Likewise the dollar is consolidating around $1.42: €1 and will do so until new news triggers a move either way. Longer-term the worsening EU debt crisis has moved into territory where it may impact the fundamentals of the Eurozone more than intended to.
Greece has no difficulty in making the headlines this week with EU leading politicians and monetary authorities talking different and opposing stories. Politicians want some debt to be written off while monetary official gasp in horror at the thought of those banks that would have to take such a loss and then be compromised.
Why not let the E.C.B. buy the bonds and take the loss, then print some more new money to cover the loss some may say? Monetary officials cringe at the thought, but such discussions do wonders for precious metals.
Unsurprisingly, Japan has moved into recession, but we do not believe this will affect precious metal prices. While the Japanese moved that way before the tsunami and earthquake, the second half of the year should see the reconstruction and recovery stimulate the economy, likely out of recession.
We are going to issue an article on whether George Soros’ exit from his 16 tonnes of gold position signals the end of the ‘bull’ market in gold or not in the next issue of the Gold Forecaster and the Silver Forecaster. It appeared that he had quite a following in the gold market, which has since closed their positions.
We cover the implications for gold in macro-economic and currency events in all the issues of the Gold Forecaster and the Silver Forecaster for subscribers. [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, 19 May 2011 | Digg This Article
| Source: GoldSeek.com
