-- Posted Friday, 8 July 2011 | | Disqus
Asia held the gold price at $1,530 at the opening London dropped it $3. The euro continued weak at €1: $1.4286. The euro price of gold was €1,068.88, €10 off its all-time peak. London’s opening saw little change in prices ahead of the London Fixing. In the last few days we have seen the London Fixings dominate the gold prices outside the Fixes. Trading outside the Fixes has been relatively thin as the physical markets are having more impact than the marginal trading outside of the gold market, such as COMEX. Subsequently, the gold price slipped at the Fix to be set at $1,526.00 and at €1,068.08. Ahead of New York gold rose to $1,542 in the dollar and to €1,078.70 in the euro [equaling it peak].
Silver rose, with the silver Fixing in London at $36.28 but ahead of New York moved up to $36.47.
Gold - Very Short-term
Gold should be stronger today, in New York today.
Silver – Very Short-term
Silver should be stronger, in New York today.
Silver & Gold Price Drivers
The E.C.B.’s ranting at the ratings agencies and then declaring it would accept ‘lower rated’, sovereign debt as collateral for liquidity was an interesting exercise for gold investors. Investors have a responsibility to understand the risks facing them. The ratings agencies have a responsibility to accurately measure and rate risks. To have failed to downgrade Portugal would have seen them depart from their role. In the credit crunch they received a great deal of criticism for failing to accurately define risks. They won’t make that mistake again. That the E.C.B. accepts lower rated collateral is their decision, but it does tell us that the Eurozone crisis is worsening and investors should react accordingly. To either secure their wealth or to profit, investors should assess the departure of the E.C.B. from its highest standards.
For gold and silver investors its time to stand back and look at the broad spectrum of future risks facing the monetary system.
- Is the developed world in decline? -Are China and other emerging Asian nations taking power and wealth from the West? -Are the debt levels relative to developed nation’s cash flows too high? -Are there systemic flaws that could undermine the value of currencies reaching dangerous levels? -Do these threaten the markets of the world, with the exception of precious metals? -Is the global economy going to find that gold is going to rise in value because of its lack of dependence on nations and their currencies? -Will uncertainty rise and confidence continue to fall in the monetary system? -Will government continue to raise the level of gold in their reserves as they have been doing in the last two years and more? -Will gold-holding governments continue to keep a firm grip on the gold they already have?
The answers to these questions will tell you where gold and silver are going. U.S. employment figures will not.
[The Gold Forecaster and Silver Forecaster discuss all these points and more making them a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.] 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: Sf1,295.28: 1 ounce of gold. Friday: Sf1,297.59: 1 ounce of gold.
U.S. $ - Today: $1,542: 1 ounce of gold. Friday: $1,528.55: 1 ounce of gold.
Euro - Today: €1,078.32: 1 ounce of gold. Friday: €1,072.52: 1 ounce of gold.
India –Today: Rs. 68,387.70: 1 ounce of gold. Friday: Rs.67,912.71: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 8 July 2011 | Digg This Article
| Source: GoldSeek.com
