-- Posted Tuesday, 20 September 2011 | | Disqus
New York took the gold price down to $1,770 as the SPDR gold ETF increased by 10 tonnes of gold. London turned the gold price around and took it back to the $1,794 level before it was Fixed at $1,792.00 and in the euro at €1,309.367 while the euro was trading at €1: $1.3686.
Thereafter, it moved back to $1,794.70 with the euro surprisingly moving back to $1.3706, leaving the euro gold price at €1,309.43. Just after New York opened the gold price was taken down to $1,783.45 and the euro to 1€: $1.3670 leaving the gold price in the euro at €1,304.65.
Silver opened at $39.65 down from yesterday’s $40.36, following gold down and extending its loss relative to gold. In New York, just after the opening it stood at $39.41.
Gold (very short-term)
The gold price should be mixed to lower, today in New York.
Silver (very short-term)
The silver price should be mixed to lower, today in New York.
Price Drivers
The big news of the day in the Eurozone is the downgrading of Italian debt from A+ to A with a negative outlook. The political scene in Italy is not supportive of rectifying their debt problems. Without a new government and better growth prospects Italy is looking at a bleak winter. With Italian debt at 111% of GDP and Italy, like Greece, unable to stop tax evasion or promote growth above 0.2% per annum [this has been the growth level for the last decade] the chances of managing their debt are slight. Italy is the sixth Eurozone member to have its debt downgraded. But in this case, Italy is ‘too big to fail’. Unless the situation can be rectified, the Eurozone itself is under threat, not just or more members.
In Greece, the inability to bring in sufficient income to manage its debt is making a default probable not just possible. There, tax collection is a shambles. It is getting more and more likely that the euro may fall unless action is taken to remove Greece [and who next?]. However, market forces are managing to lift the euro against the dollar!
All of this is against a very real European bank crisis, which is being tackled through a vast increase in liquidity by the leading central banks of the world. If this crisis suppurates, it will dwarf the 2008 U.S. crisis. Their actions are being treated by the markets as a rescue that is working, but such measures are very gold positive! The euro is threatening to fall very heavily against many currencies, but this has not shown itself against the dollar so far, today. It’s now a case of jumping from the frying pan to the fire with the dollar the preferred currency.
While the dollar situation is not as imminent as the euro crisis is, it is just as dire.
[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 | Sf1,586.38: 1 oz. of gold | Sf1,605.26: 1 oz. of gold |
US | $1,783.45: 1 oz. of gold | $1,817.55: 1 oz. of gold |
EU | €1,304.65: 1 oz. of gold | €1,331.25: 1 oz. of gold |
India | Rs.85,676.94: 1 oz. of gold | Rs.86,778.02: 1 oz. of gold |
-- Posted Tuesday, 20 September 2011 | Digg This Article
| Source: GoldSeek.com
