-- Posted Tuesday, 18 October 2011 | | Disqus
Gold opened lower after Asia took it down to $1,674 then London followed, taking it down further to $1,660 ahead of the London Gold Fixing. The euro was weaker at €1: $1.3680 and gold in the euro fell to €1,213.45. We continue to expect the London gold Fixing to make the running on the gold price today. After trying to hold above $1,660, the gold price was Fixed at $1,658.00 and in the euro at €1,211.19 and the euro stood at €1: $1.3689.
Ahead of New York’s opening gold slipped to $1,638.15 and in the euro at €1,198.35, while the euro stood at €1: $1.3670.
The silver price started the day at over $32.33, before slipping to $30.57 ahead of New York’s opening.
Gold (very short-term)
The gold price should have a steady to weaker bias, today in New York.
Silver (very short-term)
The silver price should have a steady to weaker bias, in New York, today.
Price Drivers
Germany came in with a cold bucket of water, which it threw on the euro. We are told by Angela Merkel’s office not to expect a cure for the Eurozone problems until into next year. It was a bit late to say this after the G-20 called on the Eurozone to act quickly. The markets are now unhappy with the Eurozone and expect the worst. Funds are leaving the euro on a broad front as hope fades. If there is no solution given on the debt crisis soon, then we may well see the Eurozone impose Capital Controls to prevent a capital flight. Eurozone agreements state:
Where, in exceptional circumstances, movements of capital to or from third countries cause, or threaten to cause, serious difficulties for the operation of economic and monetary union, the Council, on a proposal from the Commission and after consulting the European Central Bank, may take safeguard measures with regard to third countries for a period not exceeding six months if such measures are strictly necessary. Needless to say, this is gold positive.
Markets won’t accept the procrastination of politicians longer than they deem necessary. They will then react. It is likely that the capital flows will rise significantly in the days ahead as depositors seek the short-term safety of other currencies. We repeat what we said yesterday: “It is clear that we are moving to one of those dramatic moments in global financial markets when something is about to happen to change the financial climates of the developed world structurally and for a long time into the future.” 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 | Sf1,479.25 | Sf1,508.16 |
US | $1,638.15 | $1,681.15 |
EU | 1,198.35 | €1,219.82 |
India | Rs.80,915.60 | Rs.82,009.45 |
-- Posted Tuesday, 18 October 2011 | Digg This Article
| Source: GoldSeek.com
