-- Posted Tuesday, 23 August 2011 | | Disqus
The sight of gold sitting at $1,901 in Asia this morning well ahead of London’s opening was quite an awakening! The €/$ exchange rate has not moved that much and stands at €1: $1.4378 at the same time making gold in the euro at €1,322.11. All currencies appeared stable holding the dollar and the euro at low levels. However, the smaller gold markets are running ahead of the main ones. Once London was open and the market became far more two-way, the gold price slipped back to just above yesterday’s afternoon Fix [$1,877.50] at $1,880. This takes the steam out of the gold price rises and ‘spikes’ in the price.
At the Fix in London, it was Fixed at $1,886.50 after yesterday’s Fix at $1,877.75 in London’s morning and in the Euro for the first time at €1,301.75 after yesterday’s Fix at €1,303.179. The €/$ exchange rate was at €1: $$1.4492 at the time. Thereafter it dropped back to $1,879 ahead of New York’s opening.
Silver was Fixed in London at $42.88 before trading at $42.80 ahead of New York’s opening.
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
More and more analysts are warning of a major correction in the gold price. It certainly has broken up out of its trend line. The question investors have to ask themselves is, “are the current buyers also potential sellers?” In developed markets, that concept seems ridiculous because it is believed that all buyers will be sellers when they have a good profit. But in the changed gold market of today buyers are not sellers as we know it.
The risks in the gold market have risen for sure, but current buyers are not price chasers either. Balanced against that, is the ongoing uncertainty in the developed world, the lack of political leadership over financial matters [We see Angela Merkel telling all that governments should not be told what to do by markets, still] and overwhelming debt in the face of further economic downturns. Will the factors pushing gold higher going to be put right? Are the gold and silver price rises just about the developed world and its problems? Bear in mind a correction is not a pre-requisite for a consolidation. Both happen before rises resume. Has gold seen its top? If not how high is it going to go? And silver?
There has never been a more important time to understand both the gold and silver markets. Those who do followed our lead to buy gold at $1,555 and are still holding gold. Our recommendations on silver are just as critical. 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 | Sf1,480.65: 1 oz. of gold | Sf1,479.90: 1 oz. of gold |
US | $1,879.00: 1 oz. of gold | $1,881.15: 1 oz. of gold |
EU | €1,297.74: 1 oz. of gold | €1,305.81: 1 oz. of gold |
India | Rs. 85,736.89: 1 oz. of gold | Rs.86,127.51: 1 oz. of gold |
-- Posted Tuesday, 23 August 2011 | Digg This Article
| Source: GoldSeek.com
