-- Posted Thursday, 26 May 2011 | | Disqus
Gold held its closing levels of New York in Asia but after London opened, but before the morning Fix, slipped back to $1,520 and back to €1,074 in the euro, before picking up ahead of the Fix. The last few days have continued to show that the London Fix sets the price for the day and is the price to which investors should pay attention for price guidance. Of note too, has been the way New York has lifted gold prices as new U.S. investments are made into the SPDR gold Exchange Traded Fund and COMEX Gold Trust.
Today in London gold was Fixed in the morning at $1,521.5 down $5 and in the euro at €1,074.66 down €10. The dollar and euro exchange rate is stabilizing between €1: $1.40 to €1: 1.42 even though the spread between the buy and the sell prices has been very wide at times. This spread volatility is indicative of volatile markets.
Just after New York’s opening the gold price was steady at $1,520.75 and in the euro at €1,072.46.
Silver opened the day in London at $37 and held at that as New York opened. It has been stronger than gold today.
Gold - Very Short-term
Gold prices should show a slightly weaker bias today, in New York.
Silver – Very Short-term
Silver should hold steady to slightly weaker today, in New York.
Silver & Gold Price Drivers
While the Silver Trust [the main silver Exchange Traded Fund] saw sellers of 51.57 tonnes of silver yesterday, the World Gold Council’s gold exchange traded fund in the U.S.A. [SPDR] saw an increase in its holdings of 4.55 tonnes.
However, the gold market is today pulling back after a strong rise and appears to be trying to turn the overhead resistance into support. It gained some structural support for this from the European Parliament proposing the gold be confirmed as an acceptable form of collateral. It won’t lift the price in the short-term, but it is another step on the road to becoming acceptable money, even by central banks which for the last 40 years have relied solely on paper currencies to provide the only money. It is expected that European Parliament and Council of the European Union will uphold the inclusion of gold in the next stage of negotiations around EMIR which will now take place after the July plenary vote. The ratification would mark a significant step forward in redefining what constitutes a highly liquid asset under the Capital Requirements IV Directive, due in the coming month, from the European Commission.
Exchanges across the world, such as Chicago Mercantile Exchange, are now accepting gold as collateral for certain trades. The Bank for International Settlements gold swap for US dollars last year adds to the move among central banks to accept gold as money. Indeed, to an extent, those Central Banks which have held on to their gold reserves and those now buying, have been tacitly accepting this principle for some time.
Gold Prices in different currencies which highlight currency moves:
In the U.S. - Today: $1,519.60: 1 ounce of gold. Yesterday: $1,526.15: 1 ounce of gold.
In the E.U. - Today: €1,075.82: 1 ounce of gold. Yesterday: €1,086.34: 1 ounce of gold.
In India – Today: Rs. 68,837.88: 1 ounce of gold. Yesterday: Rs. 69,226.16: 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 Thursday, 26 May 2011 | Digg This Article
| Source: GoldSeek.com
