-- Posted Thursday, 7 July 2011 | | Disqus
In thin trade the move from $1,494 to $1,530 was very, very fast! It is now close to the top of its trading range from being at the bottom yesterday. The Euro slipped again [the dollar did not strengthen against other currencies] down to €1: $1.4305 and the gold price in the euro hit €1,069 in Asian trade this morning. London’s opening saw little change in prices ahead of the London Fixing. Subsequently, the gold price slipped at the Fix to be set at $1,525.25 and at €1,066.37 with the dollar trading at €1: $1.4252 ahead of New York’s opening.
Ahead of New York gold rose to $1,528.55 in the dollar and to €1,072.52 in the euro.
Silver remains almost unchanged with the silver Fixing in London at $35.85 but ahead of New York moved up to $36.08 up most of a dollar. It seems that gold’s vigor helped silver rise the dollar over the last two days.
Gold - Very Short-term
Gold should tend weaker today, but may surprise on the upside, in New York.
Silver – Very Short-term
Silver should continue to move sideways, but may have an upward bias today, in New York.
Silver & Gold Price Drivers
Now the politicians are attacking the ratings agencies for the downgrading of Portuguese debt, saying they are causing more difficulties for the debt stricken members of the E.U. What politicians are not in the game of is calling a situation what it is. The only way Portugal, Greece, Spain Italy and Ireland can get a better rating is to improve their cash flows and cut back debt over the long-term. This is life’s realities. Trying to regulate or silence or adjust the viewpoints of the ratings agencies does not alter the debt position. If ratings agencies kept silent or told less than the truth of the matter what use would they be? Yes, their ‘confirmations of present realities’, does increase uncertainty, but lulling investors into a false sense of security by hiding or disguising the truth would be misleading and dishonest. Is that what the banks and politicians want?
This reality sent gold running up as it became clear that the Eurozone debt crisis is far from over and looks like worsening. Portugal’s debt has just been downgraded to ‘junk’ status. It looks like they too need a second bailout and maybe followed by Ireland needing one too. As to Spain and Italy, they remain in the wings and could well move to center stage in the near future.
Gold investors should focus their attention on the speed with which the gold price rose in thin trade yesterday and examine why it did? The gold price is far more than a reflection of the Eurozone, U.S. and Chinese debt crises! Neither does it hinge on the state of U.S. or Eurozone growth. Serious investors need to take a much larger view of the gold and silver prices if they are to understand the future path of gold and silver!
[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: Sf1,297.59: 1 ounce of gold. Friday: Sf1,275.36: 1 ounce of gold.
U.S. $ - Today: $1,528.55: 1 ounce of gold. Friday: $1,514.50: 1 ounce of gold.
Euro - Today: €1,072.52: 1 ounce of gold. Friday: €1,058.43: 1 ounce of gold.
India –Today: Rs. 67,912.71: 1 ounce of gold. Friday: Rs.67,238.76: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Thursday, 7 July 2011 | Digg This Article
| Source: GoldSeek.com
