-- Posted Monday, 27 June 2011 | | Disqus
The week started with gold falling to $1,492 ahead of London’s opening. London took it back to $1,501 where it was Fixed, $20 lower than Friday and remained up until New York opened. New York, as usual took the gold price down but not by so much, to $1,497.5. The dollar against the euro remained pretty steady in its recent trading range at €1: $1.4206 before the euro slipped to €1: $1.4175. However, in the euro the gold price fell to €1,056.37 as New York opened, still within its recent trading range.
The fear of a default by Greece is still on holding European markets to ransom at the moment, waiting for Wednesday’s vote on the new bailout package.
Silver was Fixed at $34.01 before falling back ahead of New York’s opening to $33.80.
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
The gold price dropped quickly at the end of last week. While it hit $1,500 Monday ahead of London saw it fall to $1,492 in small trade. The balance was restored at the Fix where it was lifted up. The Eurozone debt crisis is mesmerizing all markets at the moment. The concept that the dollar is a safe-haven from the euro is strange indeed, as the end July early August government debt ‘ceiling’ issue comes to a head. The U.S. debt crisis is as serious as the Eurozone crisis but not likely to be so fractious [outside of the Democrat/Republican fights]. What is noteworthy is that a ‘safe-haven’ has taken on a temporary nature in currencies. Gold has not lost any of its ‘safe-haven’ qualities and we see it acting as such over the long-term.
France is attempting to offer a solution for Greece. It is suggesting a voluntary roll-over of its debts invested in such a way as to leave only 30% of Greece’s debt in its hands. By 2013 the E.C.B. will bring Greece’s debt onto its books, leaving Greece breathing again. Then while the rating’s agencies may deem that a default, the French hope that no-one else will. Playing games with words and banks trying to save their own skins will not affect the nature of the crisis nor the loss of confidence in the Eurozone as a whole. Outside France few are impressed with the German finance minister, Wolfgang Schaeuble, saying yesterday that Europe is preparing "for the worst". George Soros a gold investor is saying that “we are on the verge of an economic collapse which starts, let's say, in Greece but could easily spread."
We are producing an article on the 111 tonnes of Greek gold in the next issue of the Gold Forecaster and Silver Forecaster. What are the issue surrounding this gold and what’s happening to it?
[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.] We cover the oil markets, main currency market, central bank buying, gold & silver ETFs as well as the COMEX action alongside key articles on what drives the gold and silver markets.
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Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,250.48: 1 ounce of gold. Friday: Sf1,272.01: 1 ounce of gold.
U.S. $ - Today: $1,496.00: 1 ounce of gold. Friday: $1,519.00: 1 ounce of gold.
Euro - Today: €1,055.80: 1 ounce of gold. Friday: €1,067.58: 1 ounce of gold.
India –Today: Rs. 67,420.33: 1 ounce of gold. Friday: Rs.68,209.94: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Monday, 27 June 2011 | Digg This Article
| Source: GoldSeek.com
