-- Posted Monday, 11 July 2011 | | Disqus
Asia lifted the gold price to $1,547 ahead of London’s opening. When London opened gold in the euro was at a convincing new peak of €1,092.40 [up €14 from the previous peak]. The euro is weak and at London’s opening it stood at €1: $1.4151 and weakening further. At the Fix these levels were confirmed at $1,543.50 and in the euro at €1,092.12. During London’s day the euro fell to €1: $1.4047 ahead of New York’s opening. At the same time gold in the dollar jumped more than $10 to $1,555 and to €1,107, the first time it has stood over €1,100!
Warning: In the U.S dollar gold is now at a critical level, taking its price, into high risk territory.
Silver rose, with the silver Fixing in London at $36.36 then rose a little to $36.74 ahead of New York. The lack of vigor in silver’s price shows how today’s action in both precious metals, clearly reflects the fall of the euro in both gold and silver.
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 week started with a change of tone coming out of Europe and its Finance Ministers. It appears that they too are facing the harsh reality that Greece really is bankrupt and that the debt to be repaid has to be lowered alongside lower interest rates. Now the story is, ‘how can the E.U. help the banks to cope with their damaged balance sheets’. Contagion is starting and despite a seemingly healthy Italian economy, perhaps more capable of repaying debt, Italy has joined the list of debt-distressed nations. How far will the contagion spread? Watch the euro itself on the world’s foreign exchanges for the answer to that question. It is clear that the Eurozone debt crisis has worsened to a new more serious level!
The possibility of a return of the Drachma has grown. If this happens, expect a two-tier Drachma, very cheap Greek holidays and a flight to gold in Greece. And if there is a smaller, stronger, northern Eurozone, what will happen to the euro and the dollar? We will cover this in our two newsletters in coming issues. [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
Across the Atlantic, what is a politically concocted crisis [quite shamefully, in view of the damage to the reputation of the U.S. itself] is being made to worsen. The problem is likely to be solved at the last moment in an irresponsible game of ‘chicken’ over raising the debt ceiling. We do not believe that investors outside of the U.S. see it as a real crisis, but U.S. investors do. Attention on U.S. politicians is growing [which is what they want] and will grow until there is a frantic mood in the country. Then politicians will hope that they are then seen as ‘saviors’. Outside the States observers are underwhelmed. With the Eurozone crisis reaching new levels, what’s going on in the States may well cause more damage to the U.S. than it believes it does! Treasury Secretary Timothy Geithner does the damage potential is huge, so should be listened to by both sides of Congress!
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,298.50: 1 ounce of gold. Friday: Sf1,295.28: 1 ounce of gold.
U.S. $ - Today: $1,555: 1 ounce of gold. Friday: $1,542: 1 ounce of gold.
Euro - Today: €1,107: 1 ounce of gold. Friday: €1,078.32: 1 ounce of gold.
India –Today: Rs. 69,181.95: 1 ounce of gold. Friday: Rs.68,387.70: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Monday, 11 July 2011 | Digg This Article
| Source: GoldSeek.com
