-- Posted Friday, 26 August 2011 | | Disqus
Enjoying the roller coaster? From the peak Fixing over $1,886.50 and in the euro, €1,279, we have seen a drop down to the Fixing of $$1,716.50 and in the euro €1,191.10 yesterday. The exchange rate of the $/€ stands at €1: $1.4425, barely changed, just ahead of New York’s opening. The Yen and the Swiss Franc are weaker this morning but not significantly. The Yen is at Y76.98 and the Swiss Franc at 0.7951, also barely changed. Then the recovery began in London’s morning this morning, where it was Fixed at $1,787.00 and at €1,237.19 before rising slightly to $1,789.75 ahead of New York’s opening.
Silver also shrugged off the sharp pullback and was trading up at $41.05 after Fixing in London at $41.06 up from yesterday’s $39.00 ahead of New York’s opening.
Gold (very short-term)
The gold price should have a weaker bias, today in New York.
Silver (very short-term)
The silver price should have a weaker bias, today in New York.
Price Drivers
The price action in gold and silver has been extremely volatile over a very short period of time. This tells us that the traders pushing prices both ways have had to close their positions very quickly as the volumes were light. Once buyers appeared at lower prices this became apparent. The result is that a large proportion of the fall has evaporated. The same can be said of the frothy rise that took gold over $1,900. We do not regard these moves as reflecting the demand and supply in the market place simply short-term games of speculators of little substance in the big picture. We do not for one moment believe that traders and speculators will give up. We expect them to re-enter the market to create more volatility from which they profit. Bear in mind the physical gold that is moving is being sought by relatively price insensitive buyers. For the roughly next week, we expect to see the roller coaster ride continue.
The acid test of who is dominating the gold price is taking place now. We are certain it is the buyers and sellers of physical gold that will dominate, so don’t be surprised to find the Technical picture confusing, to say the least.
To get a more complete perspective on gold and silver subscribe to the Gold Forecaster and the Silver Forecaster, now!
At the end of this week, developed world and Indian demand returns to the market as the ‘gold season begins.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | Yesterday |
Franc | Sf1,420.96: 1 oz. of gold | Sf1,370.76: 1 oz. of gold |
US | $1,845.00: 1 oz. of gold | $1,845.00: 1 oz. of gold |
EU | €1,239.60: 1 oz. of gold | €1,195.50: 1 oz. of gold |
India | Rs. 82,529.44: 1 oz. of gold | Rs.76,676.81: 1 oz. of gold |
-- Posted Friday, 26 August 2011 | Digg This Article
| Source: GoldSeek.com
