-- Posted Wednesday, 19 October 2011 | | Disqus
Gold rebounded from yesterday’s $1,651 level to hold in Asia at $1,660 before slipping at London’s opening to $1,653. It then Fixed in London at $1,651 and in the euro at €1,192.747. The euro was stronger at €1: $1.3005. It strengthened slightly to €1: $1.3854 ahead of New York’s opening.
Ahead of New York’s opening gold rose slightly to $1,652.40 and in the euro at €1,192.31, while the euro stood at €1: $1.3654. The silver price was Fixed at $31.97 and rose to $32.05 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
The statement by Chancellor Merkel yesterday that there would be no quick resolution to the Eurozone debt crisis gave way to rumors that a big solution was in the offing. A boost to the ‘bailout fund to take it from €440 billion to €2 trillion was being mooted. This would be directly available to governments needing bailouts in the PIIGS countries. This is what the market wanted to hear and it acted accordingly. If it is just rumor expect the markets to reverse themselves and for ‘contagion’ to really get going.
Meanwhile the darkness thickens as Moody's Investors Service cut Spain's sovereign ratings by two notches, saying high levels of debt in the banking and corporate sectors leave the country vulnerable to funding stress.
With the G-20’s warning that they want a solution this weekend, Next week should be a week of fireworks in all markets no matter what happens. 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.
Bullion dealers in Hong Kong say physical demand is robust at these levels with one dealer reporting “a wave of physical buying” once prices went below $1,630/oz. While some analysts are sending out negative signals for gold and silver based on Technical analysis, the demand from the emerging world and from central banks is more than capable of countering any developed world. It remains to be seen how this pans out in the days ahead. It will certainly make for a volatile market!
Having said that, the halcyon days of market tranquility may well now be a thing of the past for all financial markets?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,484.81 | Sf1,479.25 |
US | $1,638.15 | $1,638.15 |
EU | 1,198.35 | €1,198.35 |
India | Rs.81,286.28 | Rs.80,915.60 |
-- Posted Wednesday, 19 October 2011 | Digg This Article
| Source: GoldSeek.com
