-- Posted Tuesday, 22 November 2011 | | Disqus
The gold price in New York dropped as far down as $1,677 before closing at $1,782.3, over $40 down. Asia lifted the gold price back to $1,690 ahead of London’s opening.
At the Fix in London set it at $1,697.50 and in the euro at €1,253.137 while the euro stood at €1: $1.3546. Ahead of New York’s opening the euro stood at €1: $1.3534, the dollar price of gold at $1,695.50 making the price of gold in the euro €1,252.77. The silver price ahead of New York’s opening stood at $31.77.
Gold (very short-term)
The gold price should consolidate at these lower levels in New York today.
Silver (very short-term)
The silver price should consolidate at these lower levels in New York today.
Price Drivers
The super-committee announced their failure to do the job they were given and automatic spending cuts are scheduled for next year and beyond, in defense spending and on general spending. Add to this the worsening situation for Spain as they go to the markets for money today alongside a potential banking crisis developing and we see good cause why investors are holding back from the precious metals markets while prices are driven down. France has now joined the ranks of E.U. members having to pay higher yields to get funds in. We are producing an article on, “Will the Gold Price fall to $1,500” shortly and subscribers will receive our full views on what we expect of the gold price in the days to come. To this, please subscribe through www.GoldForecaster.com or www.SilverForecaster.com.
We are seeing shades of 2007 today as the fundamental structures that we have taken as effective for so long, underperform. The process of deleveraging and investor retreats is temporary. Once achieved fundamentals return to dictate prices of everything. With the developed world going through what history defines as the “Decline and Fall” process in the coming years, it is easy to take ones eyes off the ‘big’ picture and become mesmerized by the urgency of the immediate picture. For example, again, please note just how much gold investors have bought in the last couple of weeks in the SPDR gold ETF, including yesterday as prices fell.
We have discussed central bank gold buying as prices ‘dip’. This was well illustrated by the announcement that Russia had bought a good chunk of gold in October. As stock became available they took the offer totaling 18.6 tonnes. Of course they are not so price sensitive, but volume sensitive. With such buyers cleaning out the market, when buyers return, what will be available?
Please note the Indian Rupee continues to fall heavily, making Rupee prices of gold rise strongly.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,546.64 | Sf1,567.71 |
US | $1,695.50 | $1,703.85 |
EU | 1,252.77 | €1,268.22 |
India | Rs.88,632.26 | Rs.88,864.30 |
-- Posted Tuesday, 22 November 2011 | Digg This Article
| Source: GoldSeek.com
