-- Posted Tuesday, 13 September 2011 | | Disqus
Once again, Asia was not driving the gold price this morning as gold fell back to $1,810, before London opened and turned it around to $1,825 before falling back to $1,808.60. The euro tried to rally to touch €1: $1.3600 as London opened. Gold Fixed in London’s morning at $1,806.00 down from yesterday’s $1,843.00 and in the euro at €1,326.38down from €1,354.95 while the euro was at €1: $1.3641 up from €1: $1.3602.
The Swiss Franc is now holding the 0.8820 and the Yen stands unchanged at 77.06 to $1. After the Fix and ahead of New York the gold price rose to $1,824.80 and in the euro to €1,327.43, while the euro stood against the dollar at €1: $1.3650.
Silver opened at $40.39 slightly down on yesterday. Ahead of New York it stood it was trading at $40.46.
Gold (very short-term)
The gold price should be mixed to steady, today in New York.
Silver (very short-term)
The silver price should be mixed to steady, today in New York.
Price Drivers
The dollar is the tree trunk of the monetary system, which is clearly under stress. Investors are moving towards the trunk of this tree and away form the weaker branches in the hope that they will be safe there. But the talk of a Greek default and possible exit from the Eurozone is rampant in Europe. What we are seeing is a dollar rally as the carry trade retreats back to the dollar and away from the borrowed risk positions they have.
Investors have bought an additional 10 Tonnes of gold into the SPDR gold ETF in the last week, so the pressure on gold now reflects the weakness of the euro which is being interpreted as dollar strength.
What we must not misinterpret is the reality that financial markets are in retreat and confidence continues to slip in financial assets. The failure of political systems to resolve or rectify the structural faults both sides of the Atlantic points to deepening crises. It is easy to find some point or other that is encouraging, but we cannot avoid the conclusion that the ‘big’ developed world picture is looking grim.
Italy is asking China to buy its bonds [would you think Italy was a good investment?] as it appears that an Italian request for a bailout is just around the corner. Italy ‘is too big to fail’ for the Eurozone, so this is an indirect cry for help to keep the Eurozone itself, as it is and to stop it fragmenting. The capital flow from Europe to the States is driving up the dollar. 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!]
We have to ask ourselves the unthinkable question, “Is this the endgame for the Eurozone as we know it?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | Yesterday |
Franc | Sf1,610.38: 1 oz. of gold | Sf1,628.82: 1 oz. of gold |
US | $1,824.80: 1 oz. of gold | $1,840.90: 1 oz. of gold |
EU | €1,336.85: 1 oz. of gold | €1,351.81: 1 oz. of gold |
India | Rs.86,851.36: 1 oz. of gold | Rs.86,862.87: 1 oz. of gold |
-- Posted Tuesday, 13 September 2011 | Digg This Article
| Source: GoldSeek.com
