-- Posted Wednesday, 13 July 2011 | | Disqus
In New York, the gold price justified our warning that gold was in a high-risk area by jumping $20 in a short burst upwards. It has managed to hold that level thereafter with only a small dip to $1,565, before moving up at the morning Fix in London where it was set at $1,571.50 and in the euro at €1,114.62. The euro stabilized at €1: $1.4057 ahead of New York’s opening. The gliding down of the dollar roughly, at the same time as the euro is now showing up in the rising gold price. Today saw the gold price in the dollar start to stir.
Just ahead of New York’s opening gold stood at $1,573.70 and in the euro at €1,120.26 with the euro holding at €1: $1.4046 at a record high in the euro and moving there in the dollar.
Silver reversed its direction and moved up to $36.75 and then traded up to $37 just ahead of New York’s opening.
Gold - Very Short-term
Gold should have an upward bias, in New York today.
Silver – Very Short-term
Silver should have an upward bias, in New York today.
Silver & Gold Price Drivers
Greece was downgraded three notches to ‘junk’, by Fitch. Ireland was downgraded to ‘junk’ and Italy has received warnings of a potential downgrade by the ratings agencies.
The markets in debt-distressed nation’s bonds are fed up with the procrastination of the E.U. leaders, who despite reassurances that they are putting domestic political issues to one side, aren’t. If they were we would be seeing action. Italy is now firmly in this camp of troubled nations, as is Spain now.
How can you have a Eurozone that is integrated under one currency, without fiscal union? The acid test of this long debate is underway. To us, the attempts to ‘adjust’ these nation’s financial situations has passed and now we are seeing contagion run like a wildfire across Europe and its fire services do not appear to be up to the job. We expect some dramatic structural moves that will surprise us all, in the days ahead. If we don’t see them from the E.U. leaders we will see them from the markets!
This week is seeing a ‘gear shift’ move in the extent of the Eurozone debt crisis. For confidence to be restored in the euro and the member nations, the markets need to see structural changes in the E.U. or the crises will escalate even more.
More and more observers are now fearing that the euro itself is under fire. We think we are seeing central banks attempting to stabilize the euro against the dollar currently. We would be surprised if they succeeded.
Meanwhile the gold price is painting a more accurate picture of the value of currencies than they are themselves. [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: Sf1,303.57: 1 ounce of gold. Friday: Sf1,287.13: 1 ounce of gold.
U.S. $ - Today: $1,573.70: 1 ounce of gold. Friday: $1,546: 1 ounce of gold.
Euro - Today: €1,120.26: 1 ounce of gold. Friday: €1,109.17: 1 ounce of gold.
India –Today: Rs. 70,177.58: 1 ounce of gold. Friday: Rs.69,094.36: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 13 July 2011 | Digg This Article
| Source: GoldSeek.com
