-- Posted Thursday, 11 August 2011 | | Disqus
Gold topped $1,800 in New York at one point! Asia took it back into the $1,770 area ahead of London’s opening. The dollar is holding relatively steady against the euro at €1: $1.4259, but both of them are excessively low against the Swiss Franc at $1: 0.7296. The Swiss National Bank will now ‘flood’ the foreign exchanges with more Francs in an attempt to savagely weaken the Swiss currency.
Silver is still lagging behind gold at $38.66 up only 20 cents on yesterday. In the euro gold is standing at €1,241.32. In London the sober market assessment of the demand and supply of gold saw the gold price Fixed at $1,786.00 and in the euro at €1,254.39. Ahead of New York, the gold price was recovering to $1,780.00 and in the euro to €1,257.46 and the euro weakening against the dollar to 1.4155.
Silver was Fixed at $39.18 up from yesterday’s $38.31 but fell back to $38.91 ahead of New York’s opening.
Gold (very short-term)
The gold price should be stronger yet again, today in New York.
Silver (very short-term)
The silver price may well again, continue to hover, before rising today in New York.
Price Drivers
When you first looked at the markets this morning, did you feel the mood change? Did you feel the tilt in the see-saw, in these moods? When we sat down to write about the markets today that change was palpable. The facts didn’t change from yesterday but the reactions to them have changed significantly. We are producing an article on this for the next issue of the Gold Forecaster and the Silver Forecaster, so we again, suggest that you subscribe to them to understand the markets you are seeing!
The hammering of European and other bank shares yesterday was the market sending a strong message to developed world politicians to change their attitudes to the Eurozone debt crisis. Of course, this message is seeping into the U.S. and to its politicians. The message is ‘tackle the crises and sort them out so all can move forward to a safer financial system.’ Translated this now means ‘you can’t bail out Italy and Spain’ and retain a tenable Eurozone. Decide what the Eurozone is going to be in the future – without the PIIGS nations. Lose Greece!’ Investors will now have to decide if they believe that this message will actually sink in.
There is far more than this in what’s being said by the markets right now. What usually happens in such markets is a fog of emotions rises up and blocks the calm reasoning that should dominate. Many of you will say, ‘ah, when this happens, that’s the time to do the opposite of what the markets are doing’. We answer, ‘that’s true, provided the markets are simply bull or bear markets, but are they?’ Hopefully, your understanding of the gold markets by now has given you a different perspective. If it hasn’t, then you might find that you’re out of step with what’s really going on.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | Yesterday |
Franc | Sf1,318.98: 1 oz. of gold | Sf1,275.72: 1 oz. of gold |
US | $1,780.00: 1 oz. of gold | $1,756.35: 1 oz. of gold |
EU | €1,257.46: 1 oz. of gold | €1,221.30: 1 oz. of gold |
India | Rs. 80,740.80: 1 oz. of gold | Rs.79,325.54: 1 oz. of gold |
-- Posted Thursday, 11 August 2011 | Digg This Article
| Source: GoldSeek.com
