-- Posted Wednesday, 26 October 2011 | | Disqus
The volatility we warned about in the newsletters came with a bang one day ahead of schedule and gold vaulted from yesterday’s $1,652 to $1,700 in late U.S. trade. Asia then London continued to take it higher to $1,715 just after London’s opening. This morning the gold price was Fixed at $1,713.00 and in the euro at €1,229.543, as the euro remained steady at €1: $1.3936. The euro was steady at that level ahead of New York’s opening at €1: $1.3934 with gold holding the $1,714.30 level and in the euro at €1,229.40.
The silver price roared over 5% overnight to open around $33.25 and traded thereafter to $33.75 up $2 on yesterday, ahead of New York’s opening.
Gold (very short-term)
The gold price should have a volatile but strong bias, today in New York.
Silver (very short-term)
The silver price should have a volatile but strong bias, in New York, today.
Price Drivers
An important lesson is being learned today. In the financial world we assume that politicians will appreciate and react to the critical items of importance in the financial world. The cancellation of the Summit of E.U. leaders came through not as an attempt by posturing politicians to make themselves the most important issue, but to the financial world as a signal that the E.U. was failing to find consensus on the proposed solutions. Aren’t we foolish, history shows that politics dominates finances, even in a world revolving around finances now!
It may be that with the three main leaders in this crisis [Merkel, Sarkozy and Berlusconi] have placed in mind their very future political careers [in view of the coming elections] ahead of E.U. finances, a decision that will be clarified in the days to come? Investors reacted speedily and precipitously and drove gold back to the uptrend magnificently. Even in the U.S., investors bought over 6 tonnes of gold into the SPDR gold ETF yesterday.
We would like to emphasize that the market actions are not due to short-term considerations [such as a postponement of a Summit meeting] but to critical structural issues that will change this world dramatically. 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.
All gold or silver investors out there should keep their eyes firmly riveted to these markets in the next few days! Note how the Indian Rupee is falling [nearly 20% in two months] and its effect on their gold prices!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,497.53 | Sf1,458.61 |
US | $1,714.30 | $1,656.00 |
EU | 1,230.17 | €1,189.91 |
India | Rs.84,865.56 | Rs.81,846.97 |
-- Posted Wednesday, 26 October 2011 | Digg This Article
| Source: GoldSeek.com
