-- Posted Wednesday, 27 July 2011 | | Disqus
New York closed at $1,616 last night and rose to $1,623 in Asia up to London’s opening. The U.S. dollar stood almost unchanged at €1: $1.4483 then. Still no agreement on the debt ceiling, except for more new plans from both sides. It didn’t help that they got their sums wrong either.
At the London morning Fix gold Fixed at $1,621.00 and unremarkably in the euro at €1,118.32 with the dollar barely changed at €1: $1.4475.
Just ahead of New York’s opening, gold continued to rise to stand at $1,617.35 with the dollar standing at €1: $1.4450. Gold in the euro was at €1,119.27.
After Fixing at $40.81 today, silver slipped, ever so slightly to $40.72 just before 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 show a slightly stronger bias in New York today.
Silver – Very Short-term
We expect silver to be show a slightly stronger bias in New York today.
Silver & Gold Price Drivers
There are two ways to go on the debt-ceiling issue in the U.S.A.
The first is to believe the brinkmanship and take action to protect oneself against a default and run from the dollar to gold and silver, waiting for the dreaded August 2nd.
The second is to say we are dealing with politicians here and nothing is what it seems, certainly not this concocted drama. The Fed and the Treasury have a Plan B. Politicians know this and are using the drama to the limit. They too already know the when and the how of their capitulation [no doubt dragging the drama out still further]. So either we are going to see some dramatic action from the Fed [writing off their holdings of Treasuries?] or in an act of patriotic national interest will strike a deal at the last moment. So look at gold and silver in the context of the ‘big’ picture.
Gold and silver are telling us that U.S. investors are not worried and are not buying precious metals in fear of this ‘crisis’. So if none arrives we don’t expect drama [except for a day or two] in those markets. But almost no-one has allowed for a genuine default, after all, the U.S. can print money at will. If one does arrive, we will see the real financial earthquake. We have produced 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 in the next issue of the newsletters. Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com
For a moment look back to the mid-1970’s and contemplate the all-powerful U.S. of A. and the power it had. Now reflect on how it stands now in the context of the rest of the world and the changes we have seen since then. These are the changes that have turned investors to gold. There’s no going back to the seventies! These influences are far bigger than a political squabble that long-term mars the financial reputation and decision-making capability of the U.S. That is part of the process of long-term decay of the developed world. Take a look at the gold prices below and you see a reflection of the decay of the dollar and the euro, but little change in the gold prices there to the days before the Congressional drama began.
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,295.34: 1 ounce of gold. Friday: Sf1,292.87: 1 ounce of gold.
U.S. $ - Today: $1,616.35: 1 ounce of gold. Friday: $1,610.85: 1 ounce of gold.
Euro - Today: €1,119.27: 1 ounce of gold. Friday: €1,112.77: 1 ounce of gold.
India –Today: Rs. 71,441.05: 1 ounce of gold. Friday: Rs.71,197.96: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 27 July 2011 | Digg This Article
| Source: GoldSeek.com
