-- Posted Tuesday, 2 August 2011 | | Disqus
New York tried to knock gold down and only got it down to $1,615 after London had it Fixed at $1,613.5 in the morning [In the euro at €1,117.54]. It closed there at $1,618.5. The dollar then slipped to Yen 77.3 against the dollar a point where we expect the Bank of Japan to intervene to weaken the Yen. The dollar fell again, against the Swiss Franc to o.7790 so expect the Swiss National Bank to do something similar soon. But the euro fell the fastest and against the U.S. dollar to €1: $1.4183 with a four point spread.
As to gold, it started the day ahead of London’s opening at $1,625 then rose through the morning to Fix at $1,624.00 and in the euro at €1,145.28 up another €8.
Just ahead of New York’s opening, gold continued to rise to $1,638.00 and in the euro to €1,155.68 up €18 on the day. This is now at a record high!
Silver was Fixed at $39.73 after yesterday’s $39.31. After the Fix it began to rise through $40.04 ahead of New York’s opening.
Gold (very short-term)
The gold price should have a stronger bias today in New York, as the lack of confidence in the dollar and euro is shown on global foreign exchanges.
Silver (very short-term)
The silver price should have a stronger bias today in New York as it follows gold.
Price Drivers
The day’s action so far, tells us that the debt deal in the U.S. is old news already and the developed world economic weakness and its inability to handles their problems is today’s news. The dive of the euro alongside a tumbling dollar tells a far bigger picture than the political antics in Washington. The spending cuts now passed after weeks of partisan bickering will result in a ½% of GDP, cut in spending against a 10% deficit. The decision of Congress was a vote for the “live now, pay later” culture to be set in stone.
We have seen Congress lay the groundwork for the next major financial crisis. A look at this present performance does not inspire any confidence that when the nasty does hit the fan, they will be able to cope any better. There are several potential factors that can bring on the next crisis before long. We will discuss these, in the next and coming issues of the Gold & Silver Forecasters.
As we watch the currency stresses now unfolding on the globe’s foreign exchanges pressuring central banks to manage their currencies, we would ask what value we can really put on the euro and the dollar. With Thailand [17.7 tonnes] and Korea [25 tonnes] buying gold for their reserves, we see the growing importance of gold as a reserve asset!
Regards,
Julian D.W. Philips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | Yesterday |
Franc | Sf1,275.67: 1 oz. of gold | Sf1,268.54: 1 oz. of gold |
US | $1,638.00: 1 oz. of gold | $1,618.65: 1 oz. of gold |
EU | €1,155.06: 1 oz. of gold | €1,122.35: 1 oz. of gold |
India | Rs. 72,201.40: 1 oz. of gold | Rs.71,350.0972: 1 oz. of gold |
-- Posted Tuesday, 2 August 2011 | Digg This Article
| Source: GoldSeek.com
