-- Posted Tuesday, 24 May 2011 | | Disqus
Gold rose in response to the degrading Eurozone crisis. In the euro gold again touched new highs at €1,080.41. In the dollar it rose to $1,519 ahead of London’s opening, in Asia. The dollar stands at $1.4065 early in London.
At the Fix, gold was set at $1,520.75 and in the euro at €1,078.85, up from yesterday and approaching €1,100. The dollar price, because of the dollar’s performance is well bel;ow peak prices.
Ahead of New York’s opening the gold price in the dollar stood at $1,522.55 up $15 and in the euro at €1,079.40 breaking through resistance and the dollar stood at €1: $1.4109 and looked like weakening further.
Silver has now picked up its pace with gold and is standing at $35.95 up a dollar on yesterday after a Fix of $35.85.
Gold - Very Short-term
Gold prices should show a positive bias today, in New York.
Silver – Very Short-term
Silver should continue to show a positive bias today, in New York.
Silver & Gold Price Drivers
All the below happened in one week in the fast decaying, European financial world. [And this is only Europe]:
- Greek 10-year yields jumped to a record 17%, while yields on two-year notes climbed to 26.25%.
- Fourteen U.K. banks have been put on downgrade review.
- Belgium had the outlook on its AA+ investment-grade credit rating lowered to negative at Fitch Ratings yesterday.
- Italy has been downgraded.
- The Spanish elections went against the government who are implementing austerity measures. This is contagion!
With Spain and Italy on the debt crisis stage, the EU fund used for bailouts will be inadequate if they need a bailout. This puts the financial credibility of the EU itself on the line. We do think the EU itself will continue, irrespective of its financial condition [to be discussed more in the next issue of Gold Forecaster]. The markets are recognizing this as reflected in record euro gold prices and rising dollar gold prices.
It’s difficult to know what the price of gold is right now with the dollar falling and the euro falling faster. What can we price gold in to measure its value? In the Swiss Franc the gold price stands at Sf1,721.50. Perhaps that is a reference point. Oh, just a moment, the Swiss National Bank has in the past engineered the Swiss Franc lower too, so maybe there isn’t a currency that will do the job properly?
Perhaps we should start to look at currencies as measured by the gold price?
$1,518.00: 1 ounce of gold [U.S.]
€1,079.14: 1 ounce of gold [E.U.]
Rs. 68,643.96: 1 ounce of gold [India]
We will look at “Why is silver so volatile?” in the next issue of the Gold Forecaster and the Silver Forecaster.
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 Tuesday, 24 May 2011 | Digg This Article
| Source: GoldSeek.com
