-- Posted Thursday, 17 November 2011 | | Disqus
New York closed at $1,762.90 down $19 then Asia took it up to $1,765. The euro was steady this morning at €1: $1.3511 which is also showing a tightening trading pattern. The Fixing was set at $1,756.00, and in the euro price it Fixed at €1,304.122, lower in the dollar and higher in the euro, while the euro was at €1: $1.3465. Ahead of New York’s opening the euro stood at €1: $1.3498, the dollar price of gold at $1,751 making the price of gold in the euro €1,297.23.
The silver price opened this morning at$33.86 down 35 cents on yesterday. Thereafter, it fell to $33.17 before New York’s opening.
Gold (very short-term)
The gold price should show a narrower to weaker consolidation in New York today.
Silver (very short-term)
The silver price should show a narrower to weaker consolidation in New York today.
Price Drivers
It is now clear that it is traders who are driving gold prices lower, but they are closing there ‘shorts’ quicker and after smaller falls. Then Asia [mainly China] steps in to lift prices. With the Indian Rupee weakening heavily, Indian gold demand is being muted by higher Rupee gold prices at record levels.
With the Fitch ratings Agency warning that the Eurozone debt crisis will affect the U.S. banking system if the crisis worsens, the problem lies in the interconnectivity of global banking. This implies a potential ‘domino’ effect if there is a visible rupture in the Eurozone crisis.
One facet of the crisis in Europe that has not been explored in the media is a comparison of an individual going bankrupt and a nation going bankrupt.
With an individual, the debtor can only be rehabilitated with an ‘offer of compromise’ of 50% or more. Creditors can only have recourse to the assets of the debtor with the court handling them. After liquidation the creditors have no further access to the debtor at all, who in turn is not allowed credit until rehabilitated.
But a nation runs the courts into which the creditors must go to attack the debtor. The assets of the state are an integral part of the nation and remain under the jurisdiction of the nation, even if owned by foreign creditors. A creditor has little power against such a debtor except against the nation’s assets outside the country, where they fall under another jurisdiction. History has shown that any ‘offer of compromise’ from a nation could prove worthless. A change of regime may see the past debts written off. Further, creditor banks can have a settlement sweetened by an adjustment in the nature of how they make money in debtor nations [Loans- Debts repaid in local currencies to some extent – Discount exchange rates]. In fact in the case of a nation, the path forward is usually the result of a negotiated settlement with no force from a court involved. In the case of Greece, either if it stays in the E.U. or not, the creditor banks will take the pain far more than Greece as it holds the reins of the debt. 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 | Sf1,608.64 | Sf1,620.02 |
US | $1,751.00 | $1,768.00 |
EU | 1,297.23 | €1,305.28 |
India | Rs.90,895.29 | Rs.89,593.40 |
-- Posted Thursday, 17 November 2011 | Digg This Article
| Source: GoldSeek.com
