-- Posted Wednesday, 6 July 2011 | | Disqus
www.GoldForecaster.com & www.SilverForecaster.com
Just as you thought the E.U. and Greece were on top of its problems, they got worse and boosted the demand fro gold in the U.S. and in Asia.
The gold price has risen from $1,484, with the dollar itself holding around €1: $1.4344.
It hit $1,516 then Fixed at over the weekend and in Asia ahead of $1,515.80 and in the euro at €1,056.23 up €27 and $20. Subsequently, the gold price slipped after the Fix to trade at $1,512.
Ahead of New York the euro sank still more to €1: $1.4317 with gold rising to $1,514.5 in the dollar and to €1,058.43 in the euro.
Silver remains almost unchanged with the silver Fixing in London at $35.38 up 62 cents on yesterday and was trading at $35.36 ahead of New York’s opening. While it has moved slightly with gold it remains untouched by the Eurozone banking crisis.
Gold - Very Short-term
Gold should have an upward bias today, in New York.
Silver – Very Short-term
Silver should have an upward bias today, in New York.
Silver & Gold Price Drivers
As we said yesterday, “The ratings agencies are confirming that Greece will be in default if they do not meet the original terms of their loans. They have to rule this way or see their own credibility dissipate.” The markets accepted that yesterday and sent the gold and silver prices higher. In view of this Greek situation, Portugal is likely to get a downgrade. This puts access to the markets by these countries in doubt, for the foreseeable future. This could mean more bailout funds being forwarded by the E.U.?
With U.S. debt ceiling games of ‘chicken’ still being played by U.S. politicians, the coming drama still has just over three weeks to play out. This game may continue through a downgrade of U.S. credit ratings just to lift the stakes in the game. But when all you have to do is to print the money, then there’s no real drama. The U.S. believes that they do not have a crisis even at Massachusetts level, because the U.S. in toto is the eventual debtor, with foreign banks at a distance. We believe most investors realize this and have acted accordingly. U.S. investors are not currently driving the gold price, only in the daily ebbs and flows. They are not affecting the tide.
Likewise China’s underreporting of local government debt does not pose a crisis for them as the central government will sort matters out in a way so as to not cause strife in debt markets, internationally.
The Eurozone is a different kettle of fish! We have been lulled into a measure of security by the talking, the politics and the willingness of the banks to soften the terms of their loans to debt-distressed nations in Europe, but the harsh reality is unavoidable. The Eurozone debt crisis will continue. This will keep precious metals at these levels or higher.
Meanwhile, Asian demand is recovering after the end of the Indian marriage season and in the face of prices close to $1,500, now considered in Asia as a good buying level.
[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: Sf1,275.36: 1 ounce of gold. Friday: Sf1,269.58: 1 ounce of gold.
U.S. $ - Today: $1,514.50: 1 ounce of gold. Friday: $1,503.00: 1 ounce of gold.
Euro - Today: €1,058.43: 1 ounce of gold. Friday: €1,038.55: 1 ounce of gold.
India –Today: Rs. 67,238.76: 1 ounce of gold. Friday: Rs.66,724.18: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 6 July 2011 | Digg This Article
| Source: GoldSeek.com
