-- Posted Tuesday, 16 August 2011 | | Disqus
In New York yesterday gold rose $13.00, while the SPDR gold Exchange Traded Fund saw 12 tonnes sold. Overnight, in Asia, gold rose another $12. After London opened, gold rose another $11. The euro was stronger at $1.4377 up nearly a cent. In the euro the gold price was €1,235.58 up €23. The Swiss Franc and the Yen are now being forced higher again at 0.7828 and the Yen at 76.84 to the dollar. Today saw the gold price Fixed at $1,779 up $41 on yesterday and in the euro at €1,236.19 up €22. Thereafter it moved up ahead of New York to $1,780.20. The euro remained steady at 1.4362.
Silver was stronger at $39.50. It is holding well in the face of steady heavy selling in the U.S.
Gold (very short-term)
The gold price should have a stronger bias, today in New York.
Silver (very short-term)
The silver price should have a stronger bias, today in New York.
Price Drivers
When a man borrows as much as his income allows, he feels he is getting the best out of life. But when his income suddenly drops he feels like Mr. Macawber who said, “Happiness is earning twenty pounds and spending nineteen pounds and sixpence. Misery is earning twenty pounds and spending twenty pounds and sixpence. Consumers across the developed world understand that. Then banks understood it, but big brother came to their rescue. Then Eurozone members felt it individually, but big brother came to their rescue. Now big brother is feeling the same. So where is help to come from? Germany has reported a virtually flat economy, after France did. Can they afford to provide weaker members with a Eurobond that lets them spend again?
The euro is stronger today [sorry, we mean; not as weak as the dollar, today] but is future has darkened. Currencies have started to fall against gold today. When the dollar was de-linked from gold Nixon imposed a 10% import surcharge on all imports. Are we going to experience such measures in the developed world again?
We are commenting on this in 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!
Today, the besieged Angela Merkel and President Sarkozy are behind closed doors trying to work out measures to remove the crisis in the Eurozone, but against a backdrop of ‘stagflation or deflation. The days have come when structural changes are the only ones left to do the job. More patches will simply weaken the structures more. Expect silence from the two today and expect it for another month too. We don’t think gold will wait much longer though. And silver has started to move with gold again so watch it carefully.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | Yesterday |
Franc | Sf1,386.77: 1 oz. of gold | Sf1,368.84: 1 oz. of gold |
US | $1,780.20: 1 oz. of gold | $1,736.45: 1 oz. of gold |
EU | €1,248.12: 1 oz. of gold | €1,214.98: 1 oz. of gold |
India | Rs. 80,660.86: 1 oz. of gold | Rs.78,739.33: 1 oz. of gold |
-- Posted Tuesday, 16 August 2011 | Digg This Article
| Source: GoldSeek.com
