-- Posted Monday, 13 June 2011 | | Disqus
What has been remarkable has been the gold price in the euro. It has held at €1,061 for the last three business days. This translates into the reality that the dollar gold price is simply reflecting the strength of the dollar against the euro. That phrase [the strength of the dollar] is looking very deceptive because it is falling, but slower than the euro. At the opening in London the gold price in the dollar stood at $1,530 and now stands at $1,026.85 and the dollar at €1: $1.4363. So for investors who use the dollar to buy and sell their gold, please note you are not trading gold, but taking a position on the moves of the dollar now.
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 $1,524.70 and in the euro at €1,062.88. Gold is still in consolidation mode.
Ahead of New York’s opening gold was trading at $1,529.90. In the euro, gold stood at €1,063.91, up b€2.
Silver was weaker at $35.64 down from Friday’s $37.03. The Fix in London and was at $37.51 barely changed on Friday’s Fix.
Gold - Very Short-term
Gold prices again, should have a slightly weaker bias today in New York.
Silver – Very Short-term
Silver should again favor a neutral to weaker bias in New York today.
Silver & Gold Price Drivers
The issues that we expect to dominate the developed world’s markets will be the same as last week. Greece is on the brink of the abyss and with the government looking frail with only a six seat majority, anything could happen. But ECB President Trichet and German Finance Minister Schaeuble are at odds over investors’ role in the second Greek rescue in 14 months. The dispute turns on how politicians make good on a promise to push creditors to pay some of the cost, a step that Trichet said on June 9 could be an “enormous mistake.” Unless a deal can be struck to guarantee Greece’s financing needs for the next 12 months, the International Monetary Fund has threatened to withhold its share of what remains of Greece’s original 110 billion-euro ($159 billion) bailout. Euro-area finance ministers have called a special meeting tomorrow as they try to avoid what European Economic and Monetary Affairs Commissioner Olli Rehn called a “Lehman Brothers catastrophe on European soil.”
The ECB is lending unlimited amounts of cash to support banking systems and has relaxed collateral requirements. In May last year, it took the unprecedented decision to start buying the bonds of distressed nations in an effort to calm markets as Greece’s fiscal woes began to infect other euro-area members.
While the ECB has said it could accept a plan in which creditors voluntarily agree to buy Greek bonds to replace maturing debt, Trichet said last week the ECB has no intention of rolling over its own Greek holdings.
He also warned against Schaeuble’s proposal that maturities on Greek debt be extended for seven years, an outcome that credit-rating companies said would be considered a default. That in turn could cut off ECB lending to Greek banks, setting off a chain reaction.
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: Sf1,280.14: 1 ounce of gold. Friday: 1,291.48: 1 ounce of gold.
U.S. $ - Today: $1,529.90: 1 ounce of gold. Friday: $1,534.10: 1 ounce of gold.
Euro - Today: €1,063.91: 1 ounce of gold. Friday: €1,061.51: 1 ounce of gold.
India –Today: Rs. 68,654.26: 1 ounce of gold. Friday: Rs.68,611.09: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Monday, 13 June 2011 | Digg This Article
| Source: GoldSeek.com
