-- Posted Tuesday, 12 July 2011 | | Disqus
New York, then Asia took the gold price up to $1,550 ahead of London’s opening today, but London dropped it back during the morning to Fix at $1,546.50 and in the euro at €1,106.38. The fall in the euro continued as it fell through the $1.40 level back to €1: $1.3959 after the Fix. With the tumble of the euro the dollar has returned as the more credible pricing of gold. The U.S. sees little to talk about on the gold price, yet.
During London’s day the euro fell to €1: $1.3937 ahead of New York’s opening. At the same time gold in the dollar fell back to $1,544 but up to €1,109.11, again a record high.
Warning: In the U.S dollar gold is still at a critical level, taking its price into high risk territory.
Silver pulled back to $35.06 off more than $1.3 on the day with the silver Fixing in London coming in at $36.36 then fell back to $34.84 ahead of New York.
Gold - Very Short-term
Gold should be mixed to stronger, in New York today.
Silver – Very Short-term
Silver should be mixed to stronger, in New York today.
Silver & Gold Price Drivers
As the indecision in Europe over how to bankrupt Greece in a way that does not look like bankruptcy continues, the debt-crisis contagion has begun to spread with Spanish and Italian debt falling, taking their yields up over one full percentage point on the week. Politicians and bankers can play games with definitions, but Greek is bust.
We are of the opinion that more than just Greece is being discussed at the E.U. Finance Minister’s conference today. The deeper implications have to be addressed going down to the fundamentals of the E.U. itself. Do not be surprised if some structural reforms were on the way!
It would be prudent of the Greek government to weigh up the cost of defaulting, imposing exchange Controls and a two tier currency, converting all banking capital [customers as well] to the Drachma at a heavily devalued level and walking away from the E.U., against the pain and economic winter they face for around a decade with the debt burden still on their shoulders. 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
If Spain and Italy line up for a bailout the E.U., itself, is at risk. Certainly the euro has lost confidence and looks set to keep falling. With gold and silver at these new records in the euro we can see clearly how the precious metals are doing their job in Greece, to start with. Greeks are switching from euro deposits to gold in fear of banks collapsing. At the moment the euro as the Greek currency has opened a gaping wound in Greek finances. When will both Greece and the E.U. stop the wound from bleeding out too much?
If the European Finance Ministers do not resolve this crisis soon, then expect contagion to cause far more damage to the Euro than seen right now.
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,287.13: 1 ounce of gold. Friday: Sf1,298.50: 1 ounce of gold.
U.S. $ - Today: $1,546.60: 1 ounce of gold. Friday: $1,555: 1 ounce of gold.
Euro - Today: €1,109.17: 1 ounce of gold. Friday: €1,07: 1 ounce of gold.
India –Today: Rs. 69,094.36: 1 ounce of gold. Friday: Rs.69,181.95: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Tuesday, 12 July 2011 | Digg This Article
| Source: GoldSeek.com
