-- Posted Friday, 10 June 2011 | | Disqus
After a quiet and steady week, gold jumped in New York yesterday. In Asia, after New York’s higher close at $1,540, the gold price was steady, which was surprising because it was in the face of a stronger dollar. The result was the gold in the euro jumped from below €1,049 to €1,064.
It was not until London opened that the gold price started to move slightly up to $1,543. At London’s morning Fix it was set at $1,541.00 and in the euro at €1,064.45. Gold is still consolidating.
The euro fell against the dollar and was at €1: $1.4452 down 1.5 cents on yesterday. While July will see an E.C.B. interest rate rise, the market does not expect more after that. Ahead of New York’s opening gold was trading at $1,534.10 down $7 on the morning’s Fix. In the euro gold stood at €1,061.51 down €4.
Silver was holding slightly weaker at $37.03 ahead of New York’s opening. The Fix in London and was at $37.38.
Gold - Very Short-term
Gold prices should have a slightly weaker bias today in New York.
Silver – Very Short-term
Silver should favor a neutral to weaker bias in New York today.
Silver & Gold Price Drivers
While the E.C.B. indicated that it would raise interest rates next month, which would normally have led to a stronger euro, it was set against a backdrop of Greece’s cabinet approval of the next bailout package and austerity measures. The markets fear that higher interest rates will further jeopardize Greece’s [and the other debt-distressed E.U. member’s ability to repay their loans. The fall of the euro told us how the markets are no longer convinced that a default can be avoided. Again, investors would be wise to keep in mind the backdrop of food and energy inflation and clear indications of economic slowdown in the developed world. This makes for a far more difficult environment for such structural problems to be overcome. In turn this points the way to more instability, uncertainty and a more favorable climate for gold and silver.
What is exciting for silver investors is the way in which silver is riding a strong wave of industrial demand. Demand for silver is moving from discretionary to necessary applications. In the Hi-Tech world silver’s conductive qualities make it difficult to replace. In computers, solar panels, RFID’s and the like silver demand will be steady, to rising fast, even in an economic downturn. Demand for these and other industrial applications, in the emerging world, is growing considerably faster than in the developed world too. Now add to that investment demand. While silver has little, short to medium prospects of being an accepted monetary metal, it will remain the poorer investor’s wealth preserver, in difficult days. Silver as an investment will receive more and more attention from investors, as uncertainty grows in the days ahead.
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: Sf1,291.48: 1 ounce of gold. Friday: 1,286.64: 1 ounce of gold.
U.S. $ - Today: $1,534.10: 1 ounce of gold. Friday: $1,534.45: 1 ounce of gold.
Euro - Today: €1,061.51: 1 ounce of gold. Friday: €1,050.56: 1 ounce of gold.
India –Today: Rs. 68,611.09: 1 ounce of gold. Friday: Rs.68,643.62: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 10 June 2011 | Digg This Article
| Source: GoldSeek.com
