-- Posted Tuesday, 6 September 2011 | | Disqus
Asia drove the gold price to $1,910 in the day that U.S. markets, having been absent for Labor Day will be back at work. The euro is continuing to decline against the dollar after being relatively stable against the dollar for weeks now, standing at €1: $1.4087. The gold price now has a $30 premium over the platinum price. In the euro gold stood at €1,355.86. The Swiss Franc and the Yen are stable against the dollar now, when they are trying to weaken it still. During London’s morning the gold price was pulled back to $1,892 before being Fixed at $1,891.00 and in the euro at €1,330.73 both down on yesterday.
Thereafter and ahead of New York the gold price fell back to $1,891.45 and in the euro to €1,347.73, while the euro was at €1: $1.4034.
Silver opened at $42.47 not a significant change on yesterday. It held around that price for the rest of London’s morning. It continues to give a solid base-building performance ahead of New York’s opening. Ahead of New York it stood at $42.08.
Gold (very short-term)
The gold price should be steady to stronger, today in New York.
Silver (very short-term)
The silver price should b e steady to stronger, today in New York.
Price Drivers
The tone of the market has changed rather like a key change in music, signaling a coming crescendo. Italian failure to convince markets of their attempts to impose austerity measures has brought the Eurozone debt crisis back to center stage. Merkel’s political losses in her home state are convincing markets that her attitude to the Eurozone debt crisis is too lax, particularly on the Eurobond issue. This weakens the euro considerably. A Greek default looks more and more likely by the day. An Italian debt downgrade is being contemplated. Global financial market fear is now palpable. The failure of the E.U. to resolve the debt crisis and for its leadership to reach an accord on the way forward now looks more like a structural fault than one that different leaders could resolve. As was discovered in 1970, you just can’t have Fixed Exchange rates ruling across many nations with different economies, unless you have both political and fiscal union. As we are now seeing, it just won’t work. With the Swiss National Bank now intervening in its exchange rate, gold is running in the Swiss Franc too.
The gold price, in part, is telling us that. More importantly, Asian investors remain totally convinced that gold is the right investment to protect wealth. This is the prime driving force behind the gold price.
We will be covering the history of gold price ‘management’ in our next issue of the Gold Forecaster and Silver Forecaster. 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 | Sf1,618.82: 1 oz. of gold | Sf1,483.46: 1 oz. of gold |
US | $1,890.70: 1 oz. of gold | $1,887.35: 1 oz. of gold |
EU | €1,347.73: 1 oz. of gold | €1,336.65: 1 oz. of gold |
India | Rs.87,373.20: 1 oz. of gold | Rs.85,966.52: 1 oz. of gold |
-- Posted Tuesday, 6 September 2011 | Digg This Article
| Source: GoldSeek.com
