-- Posted Thursday, 9 June 2011 | | Disqus
Overnight gold stayed at New York’s closing level of $1,536.90. It was not until London opened that the gold price started to move slightly down. At London’s morning Fix it was set at $1,534.00 and in the euro at €1,049.97. Gold is still consolidating.
The dollar held pretty steady during London’s morning at €1: $1.4607 barely changed on yesterday, in a market that appeared to be held at that level. Ahead of New York’s opening gold was trading at $1,534.45 barely changed on the morning’s Fix. There were few changes on the foreign exchanges with the dollar standing against the euro at $1.4606: €1.
Silver looked stronger at $36.93 ahead of the Fix in London and was Fixed at $37.03 before slowly rising to $37.06 ahead of New York’s opening.
Gold - Very Short-term
Gold prices should have a neutral bias today in New York.
Silver – Very Short-term
Silver should favor the upside in New York today.
Silver & Gold Price Drivers
To quote Alan Greenspan, “Gold is money in extremis”. Are we in extreme times? Take a glance around the globe since the start of 2011 and what do you see at government level? In the emerging world where the populations are content to see their incomes rise and opportunities expanding. Go to the rest of the world as we see levels of uncertainty not seen since the darkest days of last century. In the Middle East, much to the world’s surprise we are seeing huge revolutions in several countries and fears among the rulers in others. The winds of change and revolution have blown with a force not seen for some decades.
In the developed world we are seeing nation after nation sit with divided governments, where the hold on government is split between opposing parties. These nations include; the U.S.A., the U.K., Portugal and Belgium. The same divisions are possible in Spain, Italy and Germany. The net effect of these divisions is that governments are not able to handle critical situations with a clear decisive direction at a time when they need to.
The ground is therefore laid for damaging crises to inflict tremendous harm. At the front of this line is the U.S. and its debt ceiling confrontations, crippling confidence in the U.S.’ ability to act responsibly on the nation’s obligations. All the while inflation on the food and energy front creeps up insidiously.
A second major crisis not being properly handled is the new, rising oil crisis. With the volume of spare capacity among oil producers narrowing fast as Asian demand burgeons, we should see within one year from today, a worse crisis in oil than we saw in the credit crunch, but to the upside in the oil price. The gap is now narrow enough for either speculators to go heavily long or a mischievous oil producer to cut production to trigger another round of price rises. The disunity among O.P.E.C. members yesterday weakens its power to manage such a probability for the benefit of us all!
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: Sf1,286.64: 1 ounce of gold. Friday: 1,282.76: 1 ounce of gold.
U.S. $ - Today: $1,534.45: 1 ounce of gold. Friday: $1,534.40: 1 ounce of gold.
Euro - Today: €1,050.56: 1 ounce of gold. Friday: €1,048.78: 1 ounce of gold.
India –Today: Rs. 68,643.62: 1 ounce of gold. Friday: Rs.68,594.58: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Thursday, 9 June 2011 | Digg This Article
| Source: GoldSeek.com
