-- Posted Thursday, 16 June 2011 | | Disqus
Yesterday and today well illustrate why we include the gold price in four currencies below. You can see that in all currencies it is jumped strongly because of the storm brewing in Europe. In the dollar the gold price held steady to slightly stronger overnight. In the euro it is hitting record highs starting in Asia at €1,080 and rising to €1,082.10 at the Fix. The dollar gold Fix was an unimpressive $1,525.00, seven dollars higher than yesterday morning’s Fix in London. The cause of this dichotomy was the tumbling euro which fell against the dollar to €1: $1.4112 almost 2 cents down on yesterday, in London’s morning. The tide is about to overwhelm the ebb and flow of daily price swings to give a clear direction.
The euro retreated in the face of what could be an explosive market situation in Greece to €1: $1.4297.
Ahead of New York’s opening gold was trading at $1,529.75. In the euro, gold stood at €1,085.39 up €13. The euro was still tumbling fast at €1: $1.4092.
Silver was slightly stronger at $35.57 almost unchanged on yesterday. The Fix in London and was at $35.55 up 25 cents on yesterday and trading at $35.60 ahead of New York’s opening.
Gold - Very Short-term
Dollar gold prices yet again, should have a neutral to slightly stronger bias today in New York, but are moving higher in the euro.
Silver – Very Short-term
Dollar silver should show a stronger bias in New York today after showing euro strength across the Atlantic.
Silver & Gold Price Drivers
The Eurozone crisis has moved into no-man’s-land yesterday as the Greek Prime Minister decided to form a new government and a vote of confidence in his austerity drive. If he fails, it won’t be his fault [a great political move but lousy for bailout terms acceptance] and the nation will have to hold a snap election, with a default next. Contagion will then spread to other debt distressed European nations thereafter. Consequently the euro started to fall like a stone. The euro gold price is at new highs set at this morning’s Fix. The flight from the euro will head towards the dollar first, just ahead of the start of its debt episodes in the crisis story. There are 8 days left for the E.U. and Greece to resolve the debt crisis!
Frighteningly, default is the most effective way for a nation to face the damage and get off to a new start far quicker than to keep its obligations. If they turn back to the Drachma, we may see two of them one for capital and one for commerce, with the former at a huge discount for outgoing money and a matching premium for ingoing money! We will be looking at that in forthcoming issues of the Gold Forecaster and the Silver Forecaster for the benefit of 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: Sf1,298.38: 1 ounce of gold. Friday: 1,291.16: 1 ounce of gold.
U.S. $ - Today: $1,529.75: 1 ounce of gold. Friday: $1,519.00: 1 ounce of gold.
Euro - Today: €1,085.39: 1 ounce of gold. Friday: €1,060.96: 1 ounce of gold.
India –Today: Rs. 68,707.96: 1 ounce of gold. Friday: Rs.67,871.46: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Thursday, 16 June 2011 | Digg This Article
| Source: GoldSeek.com
