-- Posted Friday, 27 May 2011 | | Disqus
Gold picked up towards New York’s close having fallen back from its opening. Asia continued to lift it up another $8 before London opened. London saw it hold these levels before Fixing at $1,527 and in the euro at €1,074.09. The dollar, amazingly, weakened against the euro [with all its dramatic problems] to stand at €1: 1.4240 as New York opened.
The week has seen around 34 tonnes of gold added to the SPDR Gold ETF.
Just after New York’s opening the gold price was rising at $1,528.55 and in the euro at €1,073.42.
Silver jumped again to $38 up from yesterday’s $37 and held at that as New York opened. It continues stronger than gold.
Gold - Very Short-term
Gold prices should show a stronger bias today, in New York.
Silver – Very Short-term
Silver should continue to show a stronger bias today, in New York.
Silver & Gold Price Drivers
With the week seeing over 30 tonnes of gold bought back into the SPDR Gold ETF, have we seen George Soros return to his physical gold position in that fund? With the poor economic news on the state of the U.S. consumer coming out this week it would make sense. The prospect of ‘deflation’ or even ‘stagflation’ [which is a present reality for the U.S. consumer right now] has re-emerged. This is critical as the U.S. consumer accounts for over two-thirds of U.S. G.D.P. Until he is in a better state, the U.S. recovery will not be convincing.
It looks like we are now in the end game for Greece. You always know that when the finger pointing starts and demands are made that the debtor can’t or won’t comply with. Now an E.C.B. head economist Otmar Issing is saying Greece ‘cheated to get into the E.U.’. Greece has failed to reach the targets set as a pre-requisite for the bailout. The I.M.F. has missed its deficit reduction targets due to a deficit shortfall and the I.M.F. is holding back the next tranche of the bailout until it sees the plan aimed at sorting out the mess. Greece seems to be at the limit of its repayment capability and further austerity measure could see far larger drops in state revenues. Looking around for assets to sell is a one-off exercise that brings the problem to edge of the abyss. Most observers are now waiting for the next disaster. Greece is bust!
Will it be kicked out of the EU? Will the euro survive? What’s in it for Germany, in particular, in staying in the Eurozone? Will Ireland and Portugal face similar realities? Will Spain and Italy follow down the black holes? The answers to all these questions will impact the reliability and value of the world’s second most important paper currency. To gold and silver investors the answers go to the fundamentals of why gold and silver are moving in a path that goes far beyond a simple ‘bull’ market. 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].
Gold Prices in different currencies which highlight currency moves:
In the U.S. - Today: $1,528.55: 1 ounce of gold. Yesterday: $1,519.60: 1 ounce of gold.
In the E.U. - Today: €1,073.42: 1 ounce of gold. Yesterday: €1,075.82: 1 ounce of gold.
In India – Today: Rs. 69,059.89: 1 ounce of gold. Yesterday: Rs. 68,837.88: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 27 May 2011 | Digg This Article
| Source: GoldSeek.com
