-- Posted Monday, 22 August 2011 | | Disqus
In New York on Friday gold closed at $1,851 after a brief and shallow consolidation. In Asia on Monday gold leapt to $1,893. At the same time the euro /dollar exchange rate has barely moved remaining at €1: $1.4355. The Yen and the Swiss Franc remain strong but not running stronger.
At the Fix in London, it was Fixed at $1,877.75 and in the Euro for the first time at €1,303.179. The €/$ exchange rate was at €1: $$1.4409 at the time. Thereafter it traded higher to $1,880.
Silver in Asia also jumped in Asia as we expected and before London opened reaching $43.74. In London it traded higher to $43.83 ahead of New York.
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
Today’s gold price rises have nothing to do with Libya.
The key to understanding what is driving gold and silver is to see when the rises took place and where. In the global physical gold market, centered in London the Fixes have set the upward pace in the last few weeks. Asian demand overnight assisted in these rises. New York’s demand has been weak and tended to pull the gold price down. Even investor demand for the SPDR gold Exchange Traded Funds has lacked vigor and investors have been just as quick to sell gold as to buy it. These sales have given some supply to a market where supplies are inclined to evaporate quickly, whenever there has been a correction. It is possible that traders are using this fund to try to move the gold price, but far more likely is the probability that an institution [George Soros?] is steadily selling gold over time. Once this supply has been exhausted, where will new supply come from?
This week we expect to see the same pattern continue. In our weekly newsletters, we detail the target prices we expect to see for both gold and silver. We are very clear on where the gold and silver prices are headed. Likewise, we are under no illusion as to where the currency markets are headed and what prospect lies in front of the dollar and the euro. As the pace of developments quickens, so will movements in the precious metals. We have also discussed the way ahead for the platinum price as it moves to a complete loss of its premium over gold. To get a more complete perspective on gold and silver subscribe to the Gold Forecaster and the Silver Forecaster, now!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | Yesterday |
Franc | Sf1,479.90: 1 oz. of gold | Sf1,457.53: 1 oz. of gold |
US | $1,881.15: 1 oz. of gold | $1,854.60: 1 oz. of gold |
EU | €1,305.81: 1 oz. of gold | €1,287.60: 1 oz. of gold |
India | Rs. 86,127.51: 1 oz. of gold | Rs.84,841.46: 1 oz. of gold |
-- Posted Monday, 22 August 2011 | Digg This Article
| Source: GoldSeek.com
