-- Posted Tuesday, 26 July 2011 | | Disqus
Having reached $1,622 at its New York peak, gold slipped in Asia then at London’s opening to touch $1,608.50. With no agreement on the debt ceiling in the U.S. the gold market is taking a sanguine approach on the price of gold and will not be panicked by traders at this stage.
At the London morning Fix gold Fixed at $1,610.00 and unremarkably in the euro at €1,112.26 with the €1: $1.4475.
Just ahead of New York’s opening, gold continued to rise to stand at $1,610.85 alongside a dollar standing at €1: $1.4476. Gold in the euro was at €1,112.77.
After Fixing at $40.34 today, silver held very steady at the same price right up to the opening in New York. The silver price has hardly been affected by the debt crises both sides of the Atlantic.
Gold - Very Short-term
We expect gold to be steady without much change in New York today.
Silver – Very Short-term
We expect silver to be steady without much change in New York today.
Silver & Gold Price Drivers
While the gold and silver market are right not to overreact to the U.S. politician’s failure to execute a ‘debt-ceiling’ deal there is now cause for alarm. After all, the U.S. and Europe’s gold and silver demand for investment reasons is but a small portion of global gold demand.
Left up to the two leaders we are sure there would have been a deal already, but they are servants of their party and the negotiation touch on the very foundation of their differences. The alarm bells should have started the moment the ‘blame game’ started as politician prepared for the worst. It is almost too late for the leaders to back off there positions for fear that they will be turned on by their own supporters.
The markets are convinced that there will be a deal and this is reflected in a gold price that is relatively steady. However, it is clear that should a default occur there will be some devastatingly strong moves in currency and precious metal markets that may well hold.
We are producing an article that looks at what will happen in the event of a default in the gold and silver markets. Subscribers will get the full article. For investors to really profit from the gold and silver markets more is needed than a short-term focus on the some of the symptoms of why the gold price is rising. The Gold Forecaster and Silver Forecaster discuss these sorts of points 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
We are certainly in the quiet before the storm. If no deal is forthcoming expect a tsunami to ripple across the globe from the financial earthquake that starts on Wall Street! Fortunately, gold and silver are positioned on high ground above the giant waves coming!
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,292.87: 1 ounce of gold. Friday: Sf1,302.73: 1 ounce of gold.
U.S. $ - Today: $1,610.85: 1 ounce of gold. Friday: $1,619.10: 1 ounce of gold.
Euro - Today: €1,112.77: 1 ounce of gold. Friday: €1,126.8: 1 ounce of gold.
India –Today: Rs. 71,197.96: 1 ounce of gold. Friday: Rs.71,888.04: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Tuesday, 26 July 2011 | Digg This Article
| Source: GoldSeek.com
