-- Posted Wednesday, 5 October 2011 | | Disqus
Gold continued to recover in Asia through to $1,630 as the euro weakened to €1: $1.3334, but when London awoke, the gold price rise accelerated and moved to $1,651. Later in London’s morning, gold continued to rise and was at $1,660 and in the euro at €1,242.515 while the euro stood against the dollar at €1: $1.3360. Ahead of New York, the gold price slipped back to $1,556.10 and in the euro to €1,240.88 while the euro was at €1: $1.3349.
The silver price started the day at $30.68 but rose ahead of New York’s opening to $31.12.
Gold (very short-term)
The gold price should continue stronger today in New York.
Silver (very short-term)
The silver price should continue stronger in New York, today.
Price Drivers
The big news of the day is that Greece will miss its deficit targets for the next two years because its recession is deeper that expected. We thought it would be 5% but what is it? It’s more than likely that the recession in Europe is worse than expected, too. The release of the news has caused a gold price upward move. It has also made debt fear contagion jump dramatically. With doubts about Eurozone’s management of the debt crisis, this news couldn’t have come at a worse time. Brace yourself for the ‘ripple’ effect. With noted academics telling us that the Eurozone banking system is bankrupt, the news makes their life even harder.
Foreign investor’s confidence in the banks has already caused a widespread withdrawal of deposits by them and by Eurozone depositors. Is this the break point? Will this light the flame that burns confidence in the euro beyond redemption, or just push Greece beyond the pale?
Expect the gold price in the developed world to respond to this news on a broad front, but the broad swell of demand comes from the other side of the world who are more focused on the ‘flooring’ of the gold price between $1,600 and $1,640. If it holds there then the emerging world will find the confidence to buy into that floor, confident that a new rise is coming. Eurozone and U.S. buyers have to feel the burn of the flames from falling confidence before they run to gold, so we’re watching to see if that happens
As we wrote in the current issue of the Gold Forecaster, we are on the brink of dramatic events! We’re 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. Subscribe now!
Regards,
Julian D.W. Phillips, Gold & Silver Forecasters
Gold Prices to Highlight Currency Moves |
| Today | 1 day ago |
Franc | Sf1,507.05: 1 oz. of gold | Sf1,469.33: 1 oz. of gold |
US | $1,656.10: 1 oz. of gold | $1,629.60: 1 oz. of gold |
EU | 1,240.88: 1 oz. of gold | €1,205.06: 1 oz. of gold |
India | Rs.81,403.94: 1 oz. of gold | Rs.79,801.51: 1 oz. of gold |
-- Posted Wednesday, 5 October 2011 | Digg This Article
| Source: GoldSeek.com
