-- Posted Monday, 26 September 2011 | | Disqus
Waking up on a Monday morning to see a gold price of $1,600 was invigorating. The shock to the markets of so many markets racing down has most investors standing back from all markets and waiting for a stabilizing. One historic fact that cannot be ignored is that prices never go in one direction all the time. After London opened, the price of gold started to pick up slightly [1%] and was Fixed at $1,615.00 and in the euro at €1,198.96 with the euro standing at€1: $$1.3470. Thereafter, in London it rose further ahead of New York’s opening to $1,630 and in the euro €1,205.30. Ahead of New York’s opening it stood down at $1,629.40 with the euro at €1: $1.3501 leaving euro gold at €1,206.83.
Silver opened in London down at $28.93 down $10 from three days ago. This was a North American investor flight to cash and from leveraged positions. Ahead of New York’s opening it stood at $28.54.
Gold (very short-term)
The gold price should continue volatile but is now very oversold. We wait for it to ‘floor’.
Silver (very short-term)
The silver price should continue volatile but is now very oversold. We wait for it to ‘floor’.
Price Drivers
In 2008 the markets reacted violently because they moved from a tremendously positive comfort zone full of hope and euphoria in the future, to the shock that there was underlying trouble in the developed, financial world. In September 2011 the hope that these problems would eventually be resolved and the developed world return to the ‘recovery’ trail, spluttered out as what looks more like a coming depression, not just a recession, seems to be on the way and developed world leaders and governing bodies clearly lacked the hormones to repair the system and set it back on course.
In that environment the news that lenders to Greece may have to take a 50% loss on their loans confirmed that not only is there a developed world banking crisis underway, but Greece is receiving the terms that would be offered to a bankrupt person by way of a settlement offer. The developing Eurozone/IMF solution to boost the ‘bailout fund’ to over €2 trillion to standby ready to rescue, Portugal, Ireland, Italy and Spain tells us we may well be on the brink of a breakup of the Eurozone. With German voters unlikely to accept any more burden of co-member debts, we do not see the 17 country’s politicians risking their political careers over what may well end them.
The rush for liquidity continues to panic markets, and tells us this betokens something far worse than 2008.
Let’s reassure gold and silver investors by saying that history has shown, overwhelmingly that gold and silver will return as a haven against what is happening, but it has to ‘floor’ first. Silver will swing far wider than gold now. We are looking at this prospective future in the next issues of the Gold Forecaster and the Silver Forecaster where you can get a more complete perspective on gold and silver so subscribe now!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | 5 days ago |
Franc | Sf1,473.38: 1 oz. of gold | Sf1,607.58: 1 oz. of gold |
US | $1,629.4: 1 oz. of gold | $1,800.00: 1 oz. of gold |
EU | 1,206.83: 1 oz. of gold | €1,317.23: 1 oz. of gold |
India | Rs.80,492.36: 1 oz. of gold | Rs.86,994.00: 1 oz. of gold |
-- Posted Monday, 26 September 2011 | Digg This Article
| Source: GoldSeek.com
