-- Posted Monday, 18 July 2011 | | Disqus
U.S. gold markets and Asian markets kept gold buoyant through to Monday morning and left is opening at just below $1,600 at $1,598. It then Fixed at $1,598.25 a new record high. In the euro it roared, this morning, and Fixed at €1136.33 as the Eurozone crisis degraded one more step. After the Fix gold got a firm hold above $1,600 trading at $1,601 for the first time ever, with both the euro and the dollar falling but the euro doing it faster, dropping to $1.4032 a full cent lower than Friday. Take a look at the gold prices in the different currencies below.
Just ahead of New York’s opening, gold started to rise again moving up over $1,598.20 with the euro gold price at €1,137.75 with the euro holding at €1: $1.4047.
Silver has jumped from Friday’s $38.00 to Fix at $40.33 in London and traded at $40.22 ahead of New York’s opening.
Gold - Very Short-term
Gold should continue to have an upward bias, in New York today.
Silver – Very Short-term
Silver should continue to have an upward bias as, in New York today.
Silver & Gold Price Drivers
The week has started on a strong note as the Eurozone crisis worsened, noticeably. The markets are unimpressed with the process of tackling Greek debt. The voluntary lengthening of maturities or lowering of interest rates would be an act of default. The E.C.B. has stated it may not accept Greek debt as collateral for the extension of liquidity. This brings the process to a logjam. There does not appear to be a way out now and even Italian debt yields are jumping. If Italy needs a bailout, the Eurozone must collapse.
The markets are going to move to discount a collapse of the euro and the Eurozone, the world’s number two currency. After more than 18 months of facing this crisis, we are now moving to the euro’s endgame. Against a backdrop of the U.S. debt-ceiling drama, global currencies are moving strongly up against both the dollar and the euro. This cannot continue for long as such strength undermines those nations’s competitiveness. This is visible particularly on the Yen, after statements from the Bank of Japan a month or more ago, that they would intervene to weaken the Yen. Once strong currencies are engineered weaker by their own central banks there will be no currency that can be relied on to measure values accurately. The gold market is at the start of telling us that.
We wish we could point to some good news for the global monetary system, but where can one find it?
[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: Sf1,306.20: 1 ounce of gold. Friday: Sf1,294.20: 1 ounce of gold.
U.S. $ - Today: $1,597.80: 1 ounce of gold. Friday: $1,582.15: 1 ounce of gold.
Euro - Today: €1,137.06: 1 ounce of gold. Friday: €1,117.26: 1 ounce of gold.
India –Today: Rs. 71,142.05: 1 ounce of gold. Friday: Rs.70,421.50: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Monday, 18 July 2011 | Digg This Article
| Source: GoldSeek.com
