-- Posted Friday, 14 October 2011 | | Disqus
New York closed at $1,667.00 but then Asia took the gold price up to $1,676 and €1,216.79 a price that held as London came to life again. In London, the price held that level until the Fix which was set at $1,676.00 at €1,214.317 while the euro stood at €1: $1.3735. Ahead of New York’s opening gold slipped to $1,673.15 and in the euro at €1,213.74, while the euro stood at €1: $1.3785.
The silver price started the day at over $32.15, before slipping slightly to $32.08 ahead of New York’s opening.
Gold (very short-term)
The gold price should have a steady to strong bias, today in New York.
Silver (very short-term)
The silver price should have a steady to strong bias, in New York, today.
Price Drivers
As you have no doubt read, seen, and heard, the financial markets of the world are being prepared to stomach drastic debt resolution and bank recapitalization plans. Expect $200 billion to be pumped into European banks just as a write-down of Greece’s debt comes in at 60% to 70%. If the timing is right, it’s hoped that the markets will lift off and the euro rise as confidence in the euro is restored.
To date the markets are positive about the scene, but not euphoric. After all this may prevent heart attacks in the financial system, but the fundamental problem lies in the poor circulation of money in the entire developed world. The rest of the body continues to suffer from the steady, osmotic movement of capital to the eastern, emerging nations. There’s little prospect of this coming back in the future either. The developed world is desperate for healthy growth, but we can’t see this even as far out as the horizon. The poor financial health that comes with that will continue. It’s in this environment that weaknesses grow alongside falling confidence and the rise of uncertainty. The heart operation by the E.U. may help to correct a poor heart condition, but it doesn’t cure the patient or kill the disease.
So the argument for the gold price to fall is weak. What’s also clear is that in China the internationalization of the Yuan will not restore that confidence, because the world has just another un-backed currency. That’s why the Chinese perceive the need for a good percentage of gold in their reserves. This is a deep underlying support for gold.
Are you ready for what lies ahead? We look at those factors and more on an ongoing basis in our newsletters, so we ask you to please subscribe through www.GoldForecaster.com or www.SilverForecaster.com.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,501.23 | Sf1,498.07 |
US | $1,673.15 | $1,666.75 |
EU | 1,213.74 | €1,214.48 |
India | Rs.82,009.45 | Rs.81,879.09 |
