-- Posted Friday, 15 July 2011 | | Disqus
Asia saw the gold price slip back from its high of yesterday to reach $1,583 ahead of London’s opening. Then London let it slip further to $1,577 and in the euro down to €1,117.56 and the €1: $1.4111 just after London opened. In London the morning Fix was set at $1,578.50 down from yesterday afternoon’s Fix of $1,590.50. The drop looked like intense demand abating, as the shorts that were squeezed yesterday causing the small ‘spike’ covered themselves. The exchange rate of the dollar to the euro has held at around €1: $1,4147 right through to the start of New York’s day.
Just ahead of New York’s opening, gold started to rise again moving up over $1,582 with the euro gold price at €1,117.26 with the euro holding at €1: $1.4161.
Silver also fell back to $38.00 in London down from yesterday’s Fix of $39.40 turning up slightly to $38.20 just ahead of New York’s opening.
Gold - Very Short-term
Gold should continue to have an upward bias as gold recovers from today’s fall in London, in New York today.
Silver – Very Short-term
Silver should continue to have an upward bias as gold recovers from today’s fall in London, in New York today.
Silver & Gold Price Drivers
The markets are unimpressed with the last days action on both sides of the Atlantic on the debt crisis front. As is so often the case when the pressure is high and confrontation the theme of the day, we get to know a great deal more about the characters involved, their strengths and weaknesses as well as their priorities. It is the priorities that matter at the moment. Of itself the debt ceiling crisis in itself is just political posturing of the worst kind. What is more important is that U.S. leaders are playing games with their reputation as the world’s economic hub, with the world’s key financial markets and the world’s only global reserve currency. Let’s be clear about this crisis. If the politicians overplay their hands, then around 9,000 U.S. municipalities will be downgraded by the ratings agencies. Internationally, it is likely that major banks will find themselves back in 2008 and the monetary system will be limping around with gaping wounds. That’s only one of the reasons why gold is rising. Just to get perspective on this, please remember that North America is responsible for only 8% of global, jewelry, bar and coin demand, that’s just above half of what Europe accounts for. Hence, the gold price primarily rides on the foreign opinion of the gold price. It is far from a simple picture of reflecting the U.S. political and economic scene. [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 pond, in Europe, the groundwork, we are sure, has been laid in Germany for some startling action to be revealed in the days to come. Weighing up the trade advantages of the euro currency against the need to support their main customers in the Southern part of the E.U. we may hear a change of Direction if Spain and Italy come with hands outstretched? Add all of the above up and you can see why the gold and silver prices are rising!
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,294.20: 1 ounce of gold. Friday: Sf1,299.27: 1 ounce of gold.
U.S. $ - Today: $1,582.15: 1 ounce of gold. Friday: $1,592.15: 1 ounce of gold.
Euro - Today: €1,117.26: 1 ounce of gold. Friday: €1,122.34: 1 ounce of gold.
India –Today: Rs. 70,421.50: 1 ounce of gold. Friday: Rs.70,850.68: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Friday, 15 July 2011 | Digg This Article
| Source: GoldSeek.com
