-- Posted Monday, 14 November 2011 | | Disqus
New York closed at $1,787 then Asia held it steady around that level until before London’s opening. London then let it follow the euro stronger than Friday’s level at €1: $1.3704 leaving the gold price in the euro at €1,304.00. London then made it slip back to $1,781.45 and in the euro to €1,300.22 with the €1: $1.3704 unchanged.
The Fix was set at $1,780.50, and in the euro price it Fixed at €1,299.066, while the euro was at €1: $1.3706. The gold price rose slightly higher after the Fix at $1,784.00 still in a very tight spread while the euro weakened a cent ahead of New York’s opening to €1: $1.3648 making the price of gold in the euro €1,307.15.
The silver price opened the week at $34.40 up 38 cents on Friday. Thereafter, it rose to $34.51 after of New York’s opening.
Gold (very short-term)
The gold price should be steady to weaker in New York today.
Silver (very short-term)
The silver price should be steady to weaker in New York today.
Price Drivers
The underlying demand for gold held the gold price at last week’s levels. We are not talking about the dollar gold price but the euro gold price as it held at €1,298.20. In the dollar it rose as the euro recovered against the dollar. This illustrates that it is not wise to just look at the gold price in the dollar. The demand for gold is more clearly illustrated in the euro as both rise against the dollar. In the days to come the price of the dollar, the euro and gold will become more difficult to define as each sees a change in its value against the other. Over time the underlying currents that are shaping the future values of each will lead to a change in perception of gold as money and currencies as measures of the gold price. We are well along on that road, but the tipping point will be when the markets accept the changes that are already in front of us now. As well as a tipping point for gold and currencies, it will be so for so many global financial markets which will be directly affected by the changes.
It is extremely difficult to find a well managed currency capable of measuring value now. We thought the Swiss Franc and the Japanese Yen were ideal candidates for this, but then the central banks of both countries undermined that by telling us they were weakening their currencies to support the national export competitiveness of their local industries. As a result it is now a fact of life that currencies will not be allowed to measure value as this will conflict with ‘more important considerations’. The gap left by this failure is extremely dangerous for world economies and begs the question of how global trade can be conducted equitably. It is a matter of time only when this issue leads to a fracture of international financial markets. To get a better perspective than we can give you here, 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 | Sf1,617.37 | Sf1,598.98 |
US | $1,784.00 | $1,764.59 |
EU | 1,307.15 | €1,293.21 |
India | Rs.89,833.32 | Rs.88,432.43 |
-- Posted Monday, 14 November 2011 | Digg This Article
| Source: GoldSeek.com
