-- Posted Wednesday, 29 June 2011 | | Disqus
Asia pulled the gold price up even more to $1,507, with the euro holding above €1: $1.4394 level throughout London’s morning. At the morning Fix in London it Fixed at $1,506.00. In the euro it was Fixed lower at €1,046.85.
The market was telling us that the Greek Parliament was going to approve of the austerity package. This meant that they believed the euro was going to recover.
Ahead of New York’s opening, in the euro the gold price fell to €1,045.28, but rose in the dollar to $1,507.40 as the euro climbed against the dollar to €1: $1.4421. This was ahead of the vote by the Greek government on t eh austerity measures. The decision will be announced after New York opens.
Silver was Fixed at $34.39 and traded at $34.40 ahead of New York’s opening at $33.83.
Gold - Very Short-term
Gold is likely to be volatile today with a strong move after the Greek decision is announced, in New York.
Silver – Very Short-term
Silver is likely to be volatile after the Greek decision is announced, in New York today.
Silver & Gold Price Drivers
With the market believing that the euro was going to recover, the euro rose all by itself, with the gold price holding at the lower end of its trading range [€1,045] but rising in the dollar. The markets are telling us that the euro price of gold dominates over the dollar price and that the Greek decision will be to adopt the austerity measures, in principle. This will not give the clear direction the market wanted because tomorrow the Greek Parliament has to vote to implement all the specific measures. That can still be voted down and the debt default occur. So the gold price will again be hanging in the air, just the same as most global markets will be.
Should the Greek crisis calm down [still threatening but not immediately], the next to enter center stage will be the U.S. when it is expected that the ratings agencies will downgrade U.S. government debt around the middle of July. The game of ‘chicken’ will continue until the beginning of August, when the heat surrounding the issue will become white hot.
This means that tomorrow will again be an uncertain day for gold and silver. [We express our views in our newsletters each week very clearly] Thereafter, once direction is given we expect a strong move in both silver and gold.
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 issues 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. 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: Sf1,258.20: 1 ounce of gold. Friday: Sf1,250.37: 1 ounce of gold.
U.S. $ - Today: $1,508.00: 1 ounce of gold. Friday: $1,501.05: 1 ounce of gold.
Euro - Today: €1,045.48: 1 ounce of gold. Friday: €1,048.70: 1 ounce of gold.
India –Today: Rs. 67,654.91: 1 ounce of gold. Friday: Rs.67,653.67: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 29 June 2011 | Digg This Article
| Source: GoldSeek.com
