-- Posted Tuesday, 14 June 2011 | | Disqus
With the sale of 10 tonnes of gold out of the gold Exchange Traded Fund SPDR in the States, the gold price was pulled down to close at $1,515 at New York’s close. Asia moved in on that price and has taken it back to $1,523.55 just ahead of London’s opening. It took a hit in the euro too falling back to €1,053.38 at the opening of Europe. Indeed, in all currencies it is falling. At London’s opening gold was pulled down again to $1,517. However, the gold price is wandering inside its trading range until a clear direction is given by world events. This means it will ebb and flow on a daily basis until the tide takes over.
At London’s morning Fix it was set at $1,519.00 and in the euro at €1,052.08. Gold remains in consolidation mode.
Ahead of New York’s opening gold was trading at $1,519.00 DOWN $4.5. In the euro, gold stood at €1,051.21 DOWN €11.
Silver was weaker at $34.86 down from Friday’s $37.03. The Fix in London and was at $34.68 down from Friday’s $37.51.
Gold - Very Short-term
Gold prices again, should have a weaker bias today in New York.
Silver – Very Short-term
Silver should again favor a weaker bias in New York today.
Silver & Gold Price Drivers
Here we go! Greece has been downgraded from B to CCC by Standard and Poor’s. They say, “The downgrade reflects our view that there is a significantly higher likelihood of one or more defaults, as defined by our criteria relating to full and timely payment, linked to efforts by official creditors to close an emerging financing gap in Greece.” It seems the bailout of Greece is becoming more about saving European banks from going into potential bankruptcy as much as it is about Greece. This highlights that bankers face the same risks in lending as borrowers do. Greece is too far gone to repay its debt so how can the bankruptcy be stage-managed to stop the bankers from following? We are on the brink of a considerably worse Eurozone crisis than ever thought possible. There are 10 more days before the next development hits us.
Inflation is now hitting everybody, everywhere. In China it is 5.5% in the face of continuing good growth figures. Likewise in India, despite growth over 8% inflation has risen to 9%. In the West rising inflation is worse because there is not sufficient economic growth to compensate for inflation and interest rates are lower then inflation giving negative returns. This is ‘stagflation’. Everywhere where incomes are not rising at the poorer levels of society social unrest is rising. We are shortly to produce an article asking, “Why invest in Gold & Silver in Inflation, Stagflation and Deflation?” 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: Sf1,273.45: 1 ounce of gold. Friday: 1,280.14: 1 ounce of gold.
U.S. $ - Today: $1,519.00: 1 ounce of gold. Friday: $1,529.90: 1 ounce of gold.
Euro - Today: €1,051.21: 1 ounce of gold. Friday: €1,063.91: 1 ounce of gold.
India –Today: Rs. 67,968.41: 1 ounce of gold. Friday: Rs.68,654.26: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Tuesday, 14 June 2011 | Digg This Article
| Source: GoldSeek.com
