-- Posted Friday, 1 July 2011 | | Disqus
Suddenly the gold price has fallen in the euro and the dollar at the opening of business in London. The gold price sank to $1,492, Fixing at $1,492.75 before slipping further during London’s morning to $1,489. In the euro gold Fixed lower at €1,027.71 down from €1,044 yesterday. It seems that the sell-off was due to the relief that Europe is not collapsing on the back of Greece.
Greece succeeded in passing legislation to implement the austerity measures passing the baton to the E.U. for sorting out in the next couple of weeks.
Ahead of New York’s opening, in the euro the gold price stood at €1,029.34 and fell in the dollar to $1,491.00 as the euro climbed slightly, against the dollar to €1: $1.4489.
Silver pulled back slightly after the Greek tragedy appeared to end, trading at just under $33.96 after yesterday’s Fix of $35.02 and today’s of $33.93 ahead of New York’s opening.
Gold - Very Short-term
Gold appears to want to continue its downward bias today, in New York.
Silver – Very Short-term
Silver appears to want to continue its downward bias today, in New York.
Silver & Gold Price Drivers
The stark reality that Greece cannot successfully repay its debts from is economy has given way to not only the sale of State assets [no mention of its 111 tonnes of gold] but to the voluntary lowering of Greece’s debt by its creditors. The target of an orderly default in 2013 is in sight now. With Greece’s history from entering the E.U. to now, many are questioning the ability of the government to implement the measures on the ground. For instance, tax collection will be a major problem. But with these steps the problem has been shoved down the road a way, so postponed for another rainy day. The net effect has been that holders of gold against a default have been selling their gold in the face of the new calm.
Hopefully, the E.U. and I.M.F. will now pass funds across to Greece so that the drama goes away. It seems that the U.S. debt situation will now move to center stage. We do expect the debt ceiling crisis to be resolved, but first the political posturing involved will be embarrassing to the U.S. But that’s politics. We would be surprised if gold and silver reacted to the performance unless a default actually did occur.
The gold and silver markets are still in high risk territory vulnerable both ways. At the moment the direction of gold and silver, in the euro and the dollar is down. It is just within the trading range of the consolidation range it has been for a while and may well soon move strongly one way or the other, so be careful out there! [We express our views in our newsletters each week very clearly]
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: Sf1,261.16: 1 ounce of gold. Friday: Sf1,261.16: 1 ounce of gold.
U.S. $ - Today: $1,511.00: 1 ounce of gold. Friday: $1,511.00: 1 ounce of gold.
Euro - Today: €1,044.20: 1 ounce of gold. Friday: €1,044.20: 1 ounce of gold.
India –Today: Rs. 67,541.70: 1 ounce of gold. Friday: Rs.67,541.70: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 1 July 2011 | Digg This Article
| Source: GoldSeek.com
