-- Posted Monday, 21 November 2011 | | Disqus
The week started with gold in Asia at $1,723 ahead of London’s opening at which point the gold price fell again to $1,711 just as London woke up. At the Fix in London set it at $1,704 and in the euro at €1,266.444 while the euro stood at €1: $1.3455. Ahead of New York’s opening the euro stood at €1: $1.3435, the dollar price of gold at $1,703.85 making the price of gold in the euro €1,268.22.
The silver price opened this morning at$32.01 before slipping with gold to $31.13 down $1.20 on Friday, ahead of New York’s opening.
Gold (very short-term)
The gold price should consolidate at these lower levels or weaken again in New York today.
Silver (very short-term)
The silver price should consolidate at these lower levels or weaken again in New York today.
Price Drivers
The week started with the fear factor forcing more liquidation in the globe’s financial markets. We expect fear to dominate as politicians driven by other priorities fail to satisfactorily address financial matters of critical importance with urgency. Consequently, precious metal markets are vulnerable to traders and speculators fanning those fears and driving markets down, still further. But note just how much gold investors have bought in the last couple of weeks in the SPDR gold ETF. Also major investors are now being seen turning to the gold stocks. The conscious effort by gold and silver mining companies to pay calculable dividends to shareholders will also make these shares attractive to investors.
The mood has subtly changed from battling the Eurozone crisis to being ready for a banking crisis to burst on us. We wonder just for how much longer short-term traders will succeed in rattling markets this way. Already we are seeing supports prove more resilient than in the past.
By Wednesday of this week the super-committee must find $1.2 trillion in deficit reduction, or cause that much in spending cuts to go into effect beginning in 2013. They are expected to announce that they have failed to reach agreement on federal budget savings. If Congress removes the automatic deficit cuts, Standard and Poor’s may drop the nation’s credit rating to AA, after reducing it to AA+ following the debt-cutting agreement. It seems that politicians will place partisan interests above the reputation of the U.S. financial situation. Meanwhile the dollar remains steady simply because there is nowhere else to go. Please note the Indian Rupee continues to fall taking Rupee prices of gold higher. 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 | Sf1,567.71 | Sf1,579.15 |
US | $1,703.85 | $1,727.45 |
EU | 1,268.22 | €1,277.89 |
India | Rs.88,864.30 | Rs.88,695.92 |
-- Posted Monday, 21 November 2011 | Digg This Article
| Source: GoldSeek.com
