-- Posted Wednesday, 25 May 2011 | | Disqus
Gold continued to rise from New York’s close through Asia’s time and into London, where it was Fixed at the morning Fix at $1,527 and in the euro at €1,084.13 while the dollar’s rally appears to be slowing down. The big question is, ‘have gold and silver stopped falling – which way next?’ [A question we will address in the next issue of the Gold Forecaster and Silver Forecaster].
Ahead of New York’s opening the gold price in the dollar stood at $1,527.30 up $5 and in the euro at a record €1,085.35. The dollar stood at €1: $1.4072. It’s difficult to tell which currency is weakening, the dollar or the euro, as they are both weakening, with one weakening faster than the other some days and the other on other days. Right now it’s the euro that’s tumbling fastest.
After being slow off the mark in the last few days, silver is going through the ‘shunt effect’ and rising faster than gold. Silver is now standing at $37.34 up from $35.95 on yesterday. It has risen almost 10% in the last week.
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
Both the Silver Trust [the main silver Exchange Traded Fund] and the World Gold Council’s gold exchange traded fund in the U.S.A. [SPDR] are seeing U.S. investment buyers again. They have been absent or selling during the last sell-off that saw gold fall from $1,578 to below $1,500 and silver plummet from $50 to $32 in the last very rapid correction. All investors are anxious to know what next? We can only suggest to investors that the more thoroughly they do their research the less of a gamble their investment will be.
- Investors need to understand future potential direction of these two precious metals, as well as the volatility they may see in each one.
- They need to understand the future of the currency they price precious metals in. After all if currencies are not good measures of how the metal is performing but are decaying currencies, then they will see the precious metal prices clouded by currency issues.
If an investor doesn’t do his homework he will look only to how much money he is making or losing with his nerves paying the price. The competent investor looks at the value his investment offers, how long it will take to go to the price the investor expects [as a result of proper research] and when to exit. His eyes are on the investment, not on his profits. Gold, in particular, is driven by a broad spectrum on investment facets, from demand and supply, to currencies, to macro-economics through to the actions of major and minor investors, overall, and specifically to global government’s actions on gold. In silver the task is a little easier but is slowly moving to the complexity that attends gold. For a taste of these complexities follow the gold prices below with us in the days ahead:
In the U.S. - Today: $1,526.15: 1 ounce of gold. Yesterday: $1,518.00: 1 ounce of gold.
In the E.U. - Today: €1,086.34: 1 ounce of gold. Yesterday: €1,079.14: 1 ounce of gold.
In India – Today: Rs. 69,226.16: 1 ounce of gold. Yesterday: Rs. 68,643.96: 1 ounce of gold.
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 Wednesday, 25 May 2011 | Digg This Article
| Source: GoldSeek.com
