-- Posted Wednesday, 1 June 2011 | | Disqus
In the euro the gold price slipped to €1,061.63 overnight and in the dollar to $1,533.1. The dollar fell to €1: $1.4441 and looks weak still. With the Eurozone crisis getting worse and worse that fall of the dollar against the euro reflects not just the U.S.’ own debt crisis but the structural shape of the U.S. balance of payments.
The gold price was Fixed in London at $1,532.25 and in the euro at €1,062.96. 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 $1,536.35 and in the euro at €1,065.36. The dollar stood at €1: $1.4421.
Silver fell in London this morning to $38.02 and held just below that as New York opened.
Gold - Very Short-term
Gold prices should show a weaker bias today, in New York.
Silver – Very Short-term
Silver should continue to show a weaker bias today, in New York.
Silver & Gold Price Drivers
Two events will color the world’s foreign exchanges today: -
- The first is the rejection of proposals put forward in Congress to allow the raising of the debt ‘ceiling’. While the U.S. calls this a ‘symbolic’ rejection the rest of the world is assessing whether partisan political interests will be allowed to damage international interests on foreign exchanges.
- The second is the next set of Greek bailout proposals. They are set to be severe. They are unlikely to get the OK from the Greek Parliament. As with the U.S. we will see the underlying principles of banking and loans come head to head with the principles of democracy.
Both the above events will have deep, long-term consequences for the monetary world. If the principles of banking and loans suffer at the hands of democracy, the turmoil in the world of finance will be substantial. If the principles of finance overwhelm those of democracy we will see social unrest that may well turn the recessions being seen in the debt distressed nations turn to depression as the inadequate cash flows to government in those countries will be insufficient to carry the burdens of debt repayment.
[We will be presenting this discussion in the next issue of the Gold Forecaster, in full. With its ramifications for the gold and silver markets] 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: 1,309.61: 1 ounce of gold.
U.S. $ - Today: $1,536.35: 1 ounce of gold.
Friday: $1,538.20: 1 ounce of gold.
Euro - Today: €1,065.36: 1 ounce of gold.
Friday: €1,066.90: 1 ounce of gold.
India –Today: Rs. 68,919.12: 1 ounce of gold.
Friday: Rs.69,282.78: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 1 June 2011 | Digg This Article
| Source: GoldSeek.com
