-- Posted Thursday, 18 August 2011 | | Disqus
Gold was Fixed twice yesterday over $1,7990 telling us that demand was prepared to pay up for gold. It continued high in Asia and in London’s morning went higher still to Fix in London at $1,794.50. In the euro it was Fixed at €1,246.44 at the time the dollar traded at €1: $1.4397.
The Swiss Franc is being held down successfully for the moment but the Yen at 76.58 against the dollar is failing to drive off buyers. This is hurting Japan’s exports as we heard today. Ahead of New York, it is running ahead through $1,800 to $1,812. Gone is the consolidation, this horse is galloping!
Silver is now rising at $40.46 up 46 cents after Fixing at $40.32. It is starting to reflect its value as an alternative to ‘money’ again. Ahead of New York’s opening it was cautiously following gold at $40.35.
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
Venezuela wants gold! In a move reminiscent of the Arab oil producers back in the early seventies Hugo Chavez is ignoring international consequences and nationalizing its gold mines. It had been forcing gold miners to sell 50% of its gold to the government before this. In nationalizing mines it hopes to add more than the 1,000 tonnes of gold now in the ground there to its vaults. To avoid international seizure of its overseas assets it is repatriating the gold it holds overseas so the 365 tonnes it now has will be held in Venezuela entirely.
Its other cash reserves it is switching out of the euro, pound and the U.S. dollar into the BRIC nation’s assets. This is a switch out of the developed world into the developing world assets plus gold, a very futuristic portfolio now. 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!
A small country whose exports are 95% oil capable of selling to Asia and ignoring Western consequences for its actions is actually making extremely bold investment decisions. It is cutting itself off from a decaying, flat growth, debt bound developed world and investing in growth and gold [which is growing too]. It may well set an example that other nations with the same flexibility may follow?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | Yesterday |
Franc | Sf1,438.65: 1 oz. of gold | Sf1,400.69: 1 oz. of gold |
US | $1,811.10: 1 oz. of gold | $1,784.00: 1 oz. of gold |
EU | €1,261.03: 1 oz. of gold | €1,233.20: 1 oz. of gold |
India | Rs. 82,803.49: 1 oz. of gold | Rs.80,842.10: 1 oz. of gold |
-- Posted Thursday, 18 August 2011 | Digg This Article
| Source: GoldSeek.com
