-- Posted Monday, 20 June 2011 | | Disqus
Overnight gold rose to the higher $1,530 area. In the euro it is racing back to the previous peaks in the €1,080’s. The euro is sitting at Friday’s levels at €1: $1,4229 ahead of London’s Fix. At the Fix in London, gold in the dollar was $1,537.00 and in the euro at €1,079.66.
Ahead of New York’s opening gold was trading at $1,535.75. In the euro, gold stood at €1,076.59 up €6. The euro was barely changed at €1: $1.4265.
Silver was slightly weaker at $35.57 ahead of New York’s opening barely changed on the entire performance of last week. The Fix in London and was at $35.58 up only 20 cents on last week.
Gold - Very Short-term
Dollar gold prices should have a stronger bias today in New York, with the gold price continuing to rise in the euro.
Silver – Very Short-term
Dollar silver should show a neutral to stronger bias in New York today.
Silver & Gold Price Drivers
With the Greek Prime Minister asking for a vote of confidence tomorrow, from his Parliament, for more austerity measures, after the E.U. finance Ministers demanded more of them yesterday, the markets took a dim view of Greece’s prospects of resolving their debt crisis. Friday saw a feeling that they might, but with nationwide protests, including a strike by electricity workers, today, a pall has been thrown over hopes for a resolution. It all now hinges on the vote of confidence in Papandreou.
If he fails to get this, then default is almost certain. Default, as is now becoming clearer, could unravel the Eurozone and the euro. The E.U. Finance Ministers will pay the needed money across, if only for that reason. But this is just another bandage on the wound, not a cure. The healing of the wound will come from the long-term implementation of the austerity measures and the loan repayments by Greece. At the moment all of this is very gold-positive. If the vote of confidence is passed then Greece will be a lesser driver of gold.
It is easy to be distracted by developed world political and financial issues from the real forces behind the gold price. It is well to remember that more than 50% of gold demand comes from the emerging world and less than 10% from the U.S.A.
Warning!
All markets are moving into a high risk area, with heightened volatility tomorrow. 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: Sf1,298.02: 1 ounce of gold. Friday: 1,295.53: 1 ounce of gold.
U.S. $ - Today: $1,535.75: 1 ounce of gold. Friday: $1,528.65: 1 ounce of gold.
Euro - Today: €1,076.59: 1 ounce of gold. Friday: €1,070.71: 1 ounce of gold.
India –Today: Rs. 69,104.14: 1 ounce of gold. Friday: Rs.68,604.28: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Monday, 20 June 2011 | Digg This Article
| Source: GoldSeek.com
