-- Posted Wednesday, 9 November 2011 | | Disqus
Asia held the gold price at $1,783.60 down from nearly passing through $1,800 ahead of London’s opening this morning with the euro at €1: $1.3808 and the gold price in the euro at €1,291.71. The Fix was set at $1,780.00 with the euro price Fixed at €1,300.409 while the euro was at €1: $1.3688.
The gold price held just slightly below that level at $1,779.36 in a very tight spread while the euro weakened a cent ahead of New York’s opening to €1: $1.3640 making the price of gold in the euro €1,304.52. The London gold Fix remains the dominating factor for the gold price, which is again narrowing its trading range.
The silver price rose but only slightly at $34.88 ahead of London’s opening. It is still struggling to break the $35 level and stay alongside gold. Thereafter, remarkably it slipped to $34.51 ahead of New York’s opening.
Gold (very short-term)
The gold price should be steady to stronger in New York today.
Silver (very short-term)
The silver price should be steady to stronger in New York today.
Price Drivers
Prime Minister Berlusconi is being sent out to pasture, so the markets think. Prior to him, Italian governments changed almost on an annual basis. We expect a similar hormone-free set of governments there unable or unwilling to get a proper grip of its finances.
For gold yesterday, this meant a consolidation period ahead of rising through the $1,800 mark. There is nothing in the departure of Berlusconi that tells us the Italian debt crisis is going to go away. We are now realizing that it is the political management of the financial crisis that is perhaps the major part of the problem. Dare we say it democracy is not a path to responsible financial management. There, we did say it.
The massive flight of capital from the debt-distressed nations of the Eurozone’s banks to the northern members of the E.U. continues to undermine the future of weaker E.U. members. We are of the opinion that Capital or Exchange Controls should have been imposed by now to prevent this. These nations are daily finding themselves in a worse position than the day before. The lifeboat fund will not be enough to pull them out of their mess now. If the worst does come to the worst, we may see Mediterranean property selling for 30% of the cost of building them sometime in the future? We have written a piece on the use of central bank gold being used as collateral by governments for the next issue. Thereafter we will produce an essay for the newsletters on “what will happen to the PIIGS nations if they leave the Eurozone, so please subscribe through www.GoldForecaster.com or www.SilverForecaster.com.
Note how the Indian Rupee is now falling in the face of its banking downgrade! Gold is roaring there.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,608.01 | Sf1,611.10 |
US | $1,779.36 | $1,766.50 |
EU | 1,304.52 | €1,302.39 |
India | Rs.89,279.39 | Rs.88,717.64 |
-- Posted Wednesday, 9 November 2011 | Digg This Article
| Source: GoldSeek.com
