-- Posted Thursday, 20 October 2011 | | Disqus
Gold started the day with a fall to $1,620 from yesterday’s $1,651 level. The euro was a tad stronger at 1€: $1.3763 ahead of the Fix, leaving gold in the euro at €1,177.07. It then Fixed in London at $1,629.00 showing the underlying emerging markets demand and in the euro at €1,180.179 while the euro stood at €1: $1.3803. The euro rose slightly to €1: $1.3806 ahead of New York’s opening, while gold slipped $1,621.00 and in the euro at €1,174.13.
The silver price opened in London at $31.07 and then rose to $30.78 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
In a set of markets now awash with rumors of solutions and breakdowns global markets today are taking a negative stance on the possibility of a resolution to the Eurozone debt crisis. After 18 month of indecision, poor leadership, discord and a general failure to handle the debt crisis we are at an expectation deadline. We are hearing a cacophony of objections to proposals, but little agreement. This is a recipe for failure.
The G-20 has called for finality at this weekend’s E.U. conference. We believe there will be some form of consensus, but will it convince the markets? The acid test is next week as markets react to whatever is put forward.
All markets are on the defensive, including the precious metal markets and stand ready to contract in the face of such failures. Banks are talking of massive contractions and lower lending in the next two years. This is deflationary. Such deflation will hit an already deflated, developed world economy.
It is as though the developed world has become a rudderless vessel in iceberg infested waters. The ‘batoning-down-the-hatches process will engender new crises and leave markets in fear. Repeat: -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.
While demand for gold remains strong on the physical side, buyers are not so concerned with prices. There will be no chasing of prices, only volumes of physical gold. In the belief that gold prices are headed to much higher new heights, buyers are happy to let prices fall and give better entry points.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,451.60 | Sf1,484.81 |
US | $1,621.00 | $1,638.15 |
EU | 1,174.13 | €1,198.35 |
India | Rs.80,737.95 | Rs.81,286.28 |
-- Posted Thursday, 20 October 2011 | Digg This Article
| Source: GoldSeek.com
