-- Posted Friday, 24 June 2011 | | Disqus
In the dollar the gold price fell $33 before recovering slightly. However, in the euro it did not fall as much because of the weakness of the euro. At Asia’s close it stood at €1,066.98 down from €1,080 a €14 fall. At the morning Fix in London it was set at $1,521.00 and in the euro at €1,065.35 with the dollar standing at €1: $1.4221.
It then fell slightly to $1,519 while the dollar hovered around $1.4228 and in the euro gold fell to €1,067.58. The fear of a default by Greece is still on the minds of Europeans and the markets, waiting for next week Tuesday.
Silver fell back ahead of New York’s opening to $34.78 after Fixing at $34.73.
Gold - Very Short-term
Gold is likely to be softer on balance today in New York.
Silver – Very Short-term
Silver is likely to be softer in New York today.
Silver & Gold Price Drivers
With the risk to the Eurozone and the euro, one would have thought that the E.U. would have avoided the sort of confrontation we are seeing there at the moment. The E.U. HAS to bail out Greece until it can default in 2013. Greece has the option of doing an Argentina and defaulting as they did. Yes, they haven’t been able to go back to the loan markets since then, but who in their right mind will accept Greece as a debtor again for the next decade at least? Now the E.U. and the I.M.F. are confronting Greece and saying agree in Parliament or no bailout. Do they also expect a default? It could be so. If the opposition calls the E.U. bluff and stops the bailout to renegotiate better terms, both sides will face the worst and contagion will go across the Atlantic as well as through Europe! If they do agree a bailout, watch the euro soar!
Gold may have fallen 1% on this, but there are no tangible reasons why it should have fallen, except that it is still in the ebb and flow of its consolidation phase.
Meanwhile, across the Atlantic the U.S. economy received a direct stimulus, where it counts, at consumer level, by the release of 60 million barrels of oil that will keep the prices under pressure for 30 days [only? – What do they know that we don’t?]. Unfortunately the link between the oil price and the gold price is tenuous at best. This move should jump start the recovery, but not cause gold and silver to fall. Gold made most of its rise to date against a booming U.S.A. and lower oil prices. Gold has risen because of deep structural monetary faults. Those faults have worsened considerably since then. A recovering U.S. is therefore positive for higher gold and silver prices.
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Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,272.01: 1 ounce of gold. Friday: Sf1,290.43: 1 ounce of gold.
U.S. $ - Today: $1,519.00: 1 ounce of gold. Friday: $1,530.85: 1 ounce of gold.
Euro - Today: €1,067.58: 1 ounce of gold. Friday: €1,078.59: 1 ounce of gold.
India –Today: Rs. 68,209.94: 1 ounce of gold. Friday: Rs.68,551.46: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 24 June 2011 | Digg This Article
| Source: GoldSeek.com
