With the world braced for more bad market news gold slipped to $1,603 before Asia lifted it back to $1,623.Once again London followed through in lifting the gold price through $1,630.The euro stood at €1: $1.3658 at the time leaving gold trading in the euro at €1,194.90. The gold price slipped afterwards to Fix at $1,620.00 and in the euro at €1,187.77 with the euro, at the time, standing at $1.3639.
After the Fix and ahead of New York’s opening it stood at $1,616.25 and the euro at €1: $1.3627 with euro gold at €1,186.06.
The silver price started the day at over $31 but slipped back ahead of New York’s opening to $30.28 60 cents down from the same time yesterday.
Gold(very short-term)
The gold price should continue volatile to weak today in New York.
Silver(very short-term)
The silver price should continue volatile to weak in New York, today.
Price Drivers
Germany has supported the expansion of the Eurozone bailout fund with a strong vote supporting Chancellor Merkel. This costs Germans an extra $120 billion, but postpones the Greek default.It is important to emphasize that just in case we all breathe a sigh of relief. The Eurozone crisis has by no means gone away.We expect an orderly Greek default later this year, with a haircut on Greek debt, an immediate recapitalization of Greek banks, European guarantees for restructured Greek debt and conditional fiscal support.Will this inspire confidence in the Eurozone and the euro or simply give some more time for markets and governments plus banks to prepare for the next episode?Certainly confidence levels have not rises and are unlikely to.
Meanwhile the gold price is still sagging with the Technical picture looking anemic.The selling that has gone on over the last few days has been rather out of line with a seller trying to maximize profits.Because it happens mainly after hours London and late in New York, it seems the seller was not trying to achieve the highest prices.If it is some sort of attempt to keep the gold price low, we believe the weight of demand is so strong that it will be overwhelmed in the next few days and weeks.When the developed world financial system is in the mess it is and Asian plus central bank demand more than capable of absorbing available supplies, we are waiting for the scales of demand and supply to tip again.There are so many events and pressures around that it would be foolish to put a date to this.One should prepare now.
We are looking at this prospective future in the next issues of the Gold Forecaster and the Silver Forecasterwhere 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
7 days ago
Franc
Sf1,447.51: 1 oz. of gold
Sf1,607.58: 1 oz. of gold
US
$1,616.25: 1 oz. of gold
$1,800.00: 1 oz. of gold
EU
1,186.06: 1 oz. of gold
€1,317.23: 1 oz. of gold
India
Rs.79,050.79: 1 oz. of gold
Rs.86,994.00: 1 oz. of gold
-- Posted Thursday, 29 September 2011 | Digg This Article | Source: GoldSeek.com
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