-- Posted Thursday, 21 July 2011 | | Disqus
New York closed at $1,595 but Asia took the gold price back over $1,600 to $1,603 overnight. London, like other financial centers, ensured currency spreads stayed wide with the euro: dollar spread 400 basis points as the discussions over the Greek debt began in Brussels. Gold pulled back to $1,600 during London’s morning ahead of New York’s opening with the exchange rate between the euro and the dollar holding around €1: $1.4184 in the middle.
The gold price was Fixed at $1,600.50 and in the euro at €1,131.1 where it has held just ahead of New York’s opening. This is just below the gold price’s peak, a reflection of the uncertainty in Europe today.
Just ahead of New York’s opening, gold dipped slightly to $1,599 alongside a dollar standing at €1: $1.4208 with gold in the euro at €1,115.24.
After Fixing at $39.78 in London’s morning, it traded just above that at $39.8 ahead of New York’s opening.
Gold - Very Short-term
Gold should be volatile, tending higher, in New York today.
Silver – Very Short-term
Silver should be volatile, tending higher, in New York today.
Silver & Gold Price Drivers
Will Europe come up with a market-convincing Greek bailout? Will it result in Germany supporting deeper fiscal union in the Eurozone or will it resort to a technical default. We know that France and Germany have agreed their position in the critical talks taking place today. The financial markets won’t like it if there is no final agreement and will like it even less if there is a default, no matter how agreeable. The gold market is taking a jaundiced view of the political efforts to resolve a financial problem. And there lies the rub. Do politicians have the same agendas as financiers? That’s why gold is still strong.
But note well, that today’s issues are not the driving force behind the gold and silver prices. The precious metals driving forces are several and structural, encompassing the global attitudes to money and change.
But today, the future of the Eurozone and the euro are at stake. This eclipses next week’s potential U.S. Federal debt default. Bear in mind we are talking about more money to keep the problems at bay, not to remove them. The problem that is unlikely to be overcome is not just the urgency of the matter but how to engineer a default while not defaulting. It boils down to an issue of whether the strong nations of the E.U. are prepared to carry the burdens of the weaker nations.
There is only half an eye on the U.S. today. The U.S. will move to center stage next week, for gold. Ask yourself, what will global markets rate as more important finance or politics, or can the two gel successfully. We are about to find out.
[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: Sf1,315.08: 1 ounce of gold. Friday: Sf1,300.96: 1 ounce of gold.
U.S. $ - Today: $1,586.15: 1 ounce of gold. Friday: $1,586.15: 1 ounce of gold.
Euro - Today: €1,128.01: 1 ounce of gold. Friday: €1,115.24: 1 ounce of gold.
India –Today: Rs. 71,200.52: 1 ounce of gold. Friday: Rs.70,502.78: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Thursday, 21 July 2011 | Digg This Article
| Source: GoldSeek.com
