-- Posted Tuesday, 15 November 2011 | | Disqus
New York closed at $1,780 then Asia took it lower to $1,768 before rising slightly before London’s opening. London then let it follow the euro weaker until the Fixing at $1,765.00, and in the euro price it Fixed at €1,302.391, while the euro was at €1: $1.3552. The gold price rose slightly higher after the Fix at $1,768.00 still in a very tight 50 cent spread as opposed to the usual 80 cent spread, while the euro weakened a cent ahead of New York’s opening to €1: $1.3545 making the price of gold in the euro €1,305.28.
The silver price opened this morning at$34.01 down 39 cents on yesterday. Thereafter, it rose to $34.11 before 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
Yesterday saw Spanish debt yields rise above 7%, with strong rumors that the E.C.B. did buy Italian debt in the secondary market. The markets are under no illusion that the crisis continues to threaten the global economy. While the world’s leading politicians are noisily verbal they are short on action. Is this because they are not able to really handle the crisis? It is becoming increasingly clear that this may well be the case. Until we do see effective action, whether it is on growth, debt resolution or reformation of the developed world’s financial situation we will continue to see money turn to precious metals. This is likely to be long-term.
Instead, we are seeing governments turn on the ratings agencies [on the messenger?] for doing their jobs. They will respond that ratings agencies statements trigger market reaction. Would it be better to sit in ignorance? The most effective way to ensure no alarming downgrades is to handle their situations in such a way that the ratings agencies can only praise them. There have to be a myriad of investors who are grateful to ratings agencies for preventing losses and yanking government chains. Hopefully, the agencies performance will not be undermined and will continue to render an invaluable service? Certainly, gold and silver investors must appreciate their efforts.
We can be sure that if they are muted, the financial crises in the developed world will continue to get worse without them and precious metal investors will continue to favor the metals over national currencies.
A development that investors should keep an eye on is the way the gold price relates to the euro at the moment. The swings in the dollar price closely relate to the moves in the euro as the gold price in the euro continues to rise slowly but surely. 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 | Sf1,620.02 | Sf1,617.37 |
US | $1,768.00 | $1,784.00 |
EU | 1,305.28 | €1,307.15 |
India | Rs.89,593.40 | Rs.89,833.32 |
-- Posted Tuesday, 15 November 2011 | Digg This Article
| Source: GoldSeek.com
