-- Posted Monday, 12 September 2011 | | Disqus
Asia was not driving the gold price this morning as gold fell back to $1,830, before London opened and turned it around to $1,842. The euro fell to €1: $1.3562 as London opened. Gold in the euro ahead of the Fix stood at €1,358 up from Friday’s €1,343.00. Gold Fixed in London’s morning at $1,843.00 and in the euro at €1,354.95 while the euro was at €1: $1.3602.
The Swiss Franc continues to be weakened at 0.8889 down from 0.8767 for $1 on Friday. After the Fix and ahead of New York the gold price slipped slightly to $1,840.90 and in the euro to €1,351.81, while the euro stood against the dollar at €1: $1.3618.
Silver opened at $41.17 down over a dollar from Friday’s $42.40. Ahead of New York it stood it was trading at $41.88.
Gold (very short-term)
The gold price should be mixed, today in New York.
Silver (very short-term)
The silver price should be mixed, today in New York.
Price Drivers
The world’s financial markets are bracing themselves for a major banking crisis as well as a clear default of Greece as Germany balks at giving further a bailout to it. Major French and other Eurozone, Asian banks are falling and perhaps later today with U.S. banks share prices following. This is not 2008 but 2011 when the banks have already taken a hammering since 2008, so the potential for greater damage is there. The signals are there that the next stage of the Eurozone crisis is on us. Thereafter, a consequence may well be the exit of Greece from the Eurozone. That may not be the end of it as contagion sets in again.
As has been the case in past global financial crises, gold moves onto the back foot, before taking off as investors run for cover under the glitter of precious metals. It is clear that one should look through the state of world currencies to the gold and silver prices, to get a good perspective on where they are going. Today sees the financial world positioning themselves for some serious blows. Hard currency bonds are also being seen as a refuge.
With the dollar being described as showing strength, it is important to point out that this is not strength, but less weakness than is being seen in other currencies. In the midst of the financial stresses we are seeing rising to the surface now, any area not facing such stresses will be seen as strong. But there is a major difference between calm and strong!
We will be discussing the link between confidence and the gold price 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 | Sf1,628.82: 1 oz. of gold | Sf1,651.58: 1 oz. of gold |
US | $1,840.90: 1 oz. of gold | $1,874.05: 1 oz. of gold |
EU | €1,351.81: 1 oz. of gold | €1,359.11: 1 oz. of gold |
India | Rs.86,862.87: 1 oz. of gold | Rs.87,165.71: 1 oz. of gold |
-- Posted Monday, 12 September 2011 | Digg This Article
| Source: GoldSeek.com
