-- Posted Wednesday, 22 June 2011 | | Disqus
The Greek Prime minister won his vote of confidence at midnight last night, when other markets were closed. Asia did not sell gold but held the price at its recent high of $1,547. The euro gained slightly at $1.4402. Gold in the euro fell slightly to €1,074.09 ahead of London’s opening.
At the Fix in London, gold in the dollar was $1,546.00 and in the euro at €1,074.36.
Ahead of New York’s opening gold was trading at $1,545.10. In the euro, gold stood at €1,073.77 slightly lower. The euro was stronger at €1: $1.4389.
Silver is still under the influence of the London silver Fixing, which was set at $35.91 barely changed on yesterday but rose slightly to $36.11 ahead of New York.
Gold - Very Short-term
Dollar gold is likely to be steady to weak today in New York.
Silver – Very Short-term
Dollar & euro silver price should be steady to lower in New York today.
Silver & Gold Price Drivers
Papandreou got his vote of confidence from the Greek Parliament. Now the next battle in a long war is next week, when the Parliament actually argue the new, second austerity measures. Then comes the convincing implementation of the measures, alongside the fire sale of Greek public assets. We are hearing from more and more experts on the matter that Greek cannot repay its debt. Europe was not impressed and left gold relatively unchanged. Of course the big test will come over a period of time in Greece. The bulk of opinion believes Greece will default at some point in time. Next week is the next test when the Greek Parliament must pass the second bout of austerity measures.
It is not so much whether the crisis can be handled either by Greece or the E.C.B., but that the foundation of the euro and the E.U. is not inspiring confidence internationally. The E.U. does not have fiscal union, which the U.S. has, so the drama is heightened in Europe, but the point is that fewer and fewer people are confident in the future of the euro and will look elsewhere for financial security. Crossing the Atlantic to the U.S. and listening to yet another warning on the consequences of a debt default by the U.S. government from the Fed Chairman Mr. Ben Bernanke has the same effect on the dollar. The days when the dollar or the euro were as good as gold have gone, as both struggle with keeping the fundamental levels of confidence in their respective currencies.
This is a slow process of attrition on the world’s two major currencies that is benefitting gold and silver in the developed world just as food and energy inflation is doing the same in the emerging world.
The high risk area for markets has gone and will re-appear next week when the Greek austerity measures are passed or not.
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Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,298.99: 1 ounce of gold. Friday: Sf1,303.84: 1 ounce of gold.
U.S. $ - Today: $1,545.10: 1 ounce of gold. Friday: $1,544.65: 1 ounce of gold.
Euro - Today: €1,073.77: 1 ounce of gold. Friday: €1,076.48: 1 ounce of gold.
India –Today: Rs. 69,266.06: 1 ounce of gold. Friday: Rs.69,307.67: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 22 June 2011 | Digg This Article
| Source: GoldSeek.com
