-- Posted Friday, 17 June 2011 | | Disqus
Overnight gold dropped to $1,525 from New York’s close of $1,529, but in the euro it pulled back €10 to €1,072 as the euro strengthened slightly to €1: $1,4231 just ahead of London’s Fix. At the Fix gold in the dollar was $1,526.25 and in the euro at €1,072.10.
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.
Ahead of New York’s opening gold was trading at $1,528.65. In the euro, gold stood at €1,070.71 down €15. The euro climbed 2 cents to €1: $1.4277.
Silver was slightly weaker at $35.18 down from $35.57 again, almost unchanged on yesterday and the day before. The Fix in London and was at $35.39 barely changed on yesterday and trading at $35.44 ahead of New York’s opening.
Gold - Very Short-term
Dollar gold prices should have another neutral to slightly stronger bias today in New York, with the gold price rising 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
Sunday is the day the Greek Prime Minister asks for a vote of confidence in his actions on the new austerity package. If he doesn’t get it and his margins are narrow and he has a rebellion among his supporters at present, then we will see a breakdown in the E.U. bailout talks. Greece will then default and set off a ripple effect throughout the Eurozone and the global banking system that will be hard to contain. Negotiations on greater austerity measures have gone too far for them to say to Greece, here’s the money, do nothing more except what you can. This means that Greece will default. The markets are rating this likelihood at 80% and 2-year Greek bonds hit 30%. At least France and the E.C.B. have agreed to voluntary extensions of maturity and bond swaps for those at lower face values.
The euro bounced a little and gold pulled back slightly in the euro but silver sat stoically at the same level as it has for the last two days.
There are 7 days left for the E.U. and Greece to resolve the debt crisis, or less if the Greek government does not get the needed vote of confidence it needs! Are we on the brink of the abyss?
Warning!
All market are moving into a high risk area, with heightened volatility. The markets [all markets, not just gold and silver] are no place for the nervous until the Greek crisis is settled one way or the other.
[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: Sf1,295.53: 1 ounce of gold. Friday: 1,298.38: 1 ounce of gold.
U.S. $ - Today: $1,528.65: 1 ounce of gold. Friday: $1,529.75: 1 ounce of gold.
Euro - Today: €1,070.71: 1 ounce of gold. Friday: €1,085.39: 1 ounce of gold.
India –Today: Rs. 68,604.28: 1 ounce of gold. Friday: Rs.68,707.96: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 17 June 2011 | Digg This Article
| Source: GoldSeek.com
