-- Posted Tuesday, 31 May 2011 | | Disqus
With the U.S. closed for Memorial Day and the U.K. closed for a Banking Holiday yesterday we saw the Asian gold price rise to $1,536 and in the euro €1,076.12 with the dollar starting in London, slipping slightly at €1: $1.4273. Today saw the dollar slipping to €1: $1.4421 despite the fears being focused on the Eurozone still.
The gold price was Fixed in London at $1,536 and in the euro at €1,066.25. You will note in the table below that the gold price remains stable in the Swiss Franc, while the exchange rate changes are reflected in the gold price in those respective currencies.
Just after New York’s opening the gold price was steady at $1,538 and in the euro at €1,067.98.
Silver moved up another 61 cents in London this morning to $38.61 and held just below that as New York opened.
Gold - Very Short-term
Gold prices should show a steady to stronger bias today, in New York.
Silver – Very Short-term
Silver should continue to show a steady to stronger bias today, in New York.
Silver & Gold Price Drivers
With such weakness in the world’s top two currencies where does one go to measure value? With the gold and silver markets being relatively small [Global currency markets trade over $10 trillion a day] precious metal markets are not able to be the sole measure. With a gold price somewhere north of $10,000 the gold market may be capable of providing that measure. So currencies remain the only real option today. Investors are currently focused on the Swiss Franc and pushing it up against the dollar and the euro. The Swiss National Bank has responded rather hopelessly by buying euros in order to lower the value of the Swiss Franc [The Swiss don’t want their currency to be a measure of value, but to fall with the euro]. The next step for the SNB is to lower interest rates or to introduce capital controls. The franc has gained 20% against the euro in the last 18 months. We expect to see the exchange rate of the Swiss franc to be lowered by hook or by crook by the actions of the SNB. For sure, all nations are now fighting to ensure that their currencies are not used as ‘safe havens’.
Irrespective of how high precious metals may go, we can expect global investors in increasing numbers to turn to them as a non-national, non-economy related preserver of acquired wealth. The acceptance of the E.U. of gold as collateral is a deeply significant event in terms of gold’s acceptance as ‘money’. While few private investors will use gold in this way the move may well be a sanctioning of inter-nation deals executed last year via the B.I.S. In the next issue of the Gold Forecaster we will cover this subject.
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 [We add the Swiss Franc today]:
Swiss Franc – Today: 1,309.361 ounce of gold. Friday: 1,309.19: 1 ounce of gold.
U.S. $ - Today: $1,538.2: 1 ounce of gold. Friday: $1,528.55: 1 ounce of gold.
Euro - Today: €1,066.90: 1 ounce of gold. Friday: €1,075.82: 1 ounce of gold.
India –Today: Rs. 69,282.78: 1 ounce of gold. Friday: Rs.68,837.88: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Tuesday, 31 May 2011 | Digg This Article
| Source: GoldSeek.com
