-- Posted Friday, 3 June 2011 | | Disqus
New York closed with gold at $1,531 and Asia plus London held the gold price at that level. Certainly the developed world is mesmerized by the job figures to be published in the U.S. today. The dollar continued to want to weaken and stood at €1: $1,4471 for much of the day ahead of New York’s opening. In the euro gold was Fixed at €1,056.44at the bottom of its trading range. With a most disappointing set of labor figures in the U.S., New York may well give the gold market direction today.
Just after New York’s opening the gold price was steady at $1,542.25 and in the euro at €1,063.03. The dollar stood at €1: $1.4508.
Silver fell to Fix in London this morning at $35.19 down $2 on yesterday and stood at $35.62 as New York opened.
Gold - Very Short-term
Gold prices should be volatile either way today in New York, with a tendency to rise.
Silver – Very Short-term
Silver should be volatile either way today in New York, with a tendency to rise.
Silver & Gold Price Drivers
The Labor figures for the States have confirmed that the U.S. recovery is faltering. With the Fed Balance Sheet, a broad gauge of Fed lending to the financial system, swelling to $2.772 trillion [a new record high] in the week ended June 1st from $2.759 trillion last week, it is becoming clear that although QE staves off a recession/depression, it is not sufficient stimulation to the economy to invigorate growth. The central bank has signaled it will complete QE2 at the end of June, but speculation is rife that they will continue it with QE3. Yes, a downturn is feared and is likely, but in the meantime, ‘stagflation will settle in. With the U.S. now threatened with a downgrade by Moody’s rating Agency unless they resolve the debt ‘ceiling’ raising by mid-July. With the final deadline for this to happen on August 2nd this year the U.S. Congress, by playing political games to get partisan gains, is undermining confidence in the dollar and U.S. fixed interest markets.
With investors like George Soros investing to protect themselves against ‘deflation’, we may well see U.S. institutions turn to gold for similar reasons.
Meanwhile, it has become crystal-clear that the approval for gold to be used as collateral in Europe has far greater significance that was initially thought. Gold Forecaster is publishing an article called “Gold as Collateral – A Major step for the gold price” which aims to explain why it is so significant. 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: 1,295.27 ounce of gold. Yesterday: 1,295.27: 1 ounce of gold.
U.S. $ - Today: $1,542.25: 1 ounce of gold. Yesterday: $1,539.15: 1 ounce of gold.
Euro - Today: €1,063.03: 1 ounce of gold. Yesterday: €1,065.16: 1 ounce of gold.
India –Today: Rs. 69,092.80: 1 ounce of gold. Yesterday: Rs.68,984.70: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 3 June 2011 | Digg This Article
| Source: GoldSeek.com
