-- Posted Monday, 24 October 2011 | | Disqus
Gold opened the day in Asia and in London at $1,650.00 as the euro slipped slightly to €: $1.3865 leaving gold in the euro at €1,190.05. In London’s mid-morning, gold was Fixed at $1,651.00 and in the euro at €1,191.37 while the euro stood at €1: $1.3858.
The euro slipped slightly to €1: $1.3838 ahead of New York’s opening, while gold rose again to $1,657.15 and in the euro to €1,197.54.
The silver price opened in London at $31.40, following gold closely. Ahead of New York’s opening silver rose to $31.60.
Gold (very short-term)
The gold price should have a steady or stronger bias, today in New York.
Silver (very short-term)
The silver price should have a steady or stronger bias, in New York, today.
Price Drivers
Today sees a more positive gold and silver market alongside a steady euro as the noises coming out of the Eurozone appear to be positive. We are being led to believe that great things are going to happen on Wednesday! The market reaction worldwide appears to be positive to this. Concerns from J.P. Morgan Chase and other U.S. banks, has heightened the potential collateral damage if Greece is not convincingly rescued. The stakes have never been higher this week. If the E.U. does deliver on Greece [they will get the next tranche of bailout money] AND the other PIIGS nations then we expect to bask in a warm, financial market recovery. If they don’t convince the market that they have succeeded well then……. If you like roller coasters, stay on board! This one might be the ride of your life! But if not…………..
Meanwhile across the other side of the world, investors in gold are happy to continue buying steadily for financial security. Looking westward, they see little reason to place their trust in either the euro or the U.S. dollar. This attitude continues to be reflected in the behavior of central banks from the emerging world, who continue to buy gold for their reserves. We don’t expect them to stop. These two sources of demand continue to support the gold price. Will silver continue to follow gold? We can see no reason why not, because it does have certain monetary aspects, which although nowhere near those of gold are present and justify its movements.
So many fundamental structural issues stem from currency issues and affect even gold and silver shares as well as the metals. Flip the coin and look at this the other way around as though gold and silver were currencies and currencies were priced by them, what would you feel the prospects for currencies were? Yes, we believe they will continue to be money [a means of exchanging goods] but the recent behavior of those managing money, would you deem them to be the measure of the value of all goods? 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 | Sf1,469.73 | Sf1,456.09 |
US | $1,657.15 | $1,635.50 |
EU | 1,197.54 | €1,183.94 |
India | Rs.82,542.64 | Rs.81,822.43 |
-- Posted Monday, 24 October 2011 | Digg This Article
| Source: GoldSeek.com
