-- Posted Wednesday, 23 November 2011 | | Disqus
The gold price in New York bounced $30 and ahead of London’s opening stood at $1,707. The euro stood at €1: $1.3463 and gold in the euro at €1,267.92.
At the Fix in London set it at $1,686.00 and in the euro at €1,260.467 while the euro stood at €1: $1.3376. Ahead of New York’s opening the euro stood at €1: $1.3402, the dollar price of gold recovered to $1,691.80 making the price of gold in the euro €1,262.34.
The silver price ahead of New York’s opening stood at $31.57.
Gold (very short-term)
The gold price should have a stronger bias in New York today.
Silver (very short-term)
The silver price should have a stronger bias in New York today.
Price Drivers
To our surprise, the E.U. Commissioners are now proposing a Eurobond for all of the E.U., clearly reliant on Germany’s ‘surety’, an issue that has been already rejected by Angela Merkel and the German Parliament. This sounds like a desperate plea because all other options are unworkable so we expect either another German rejection or terms that effectively leave Germany holding the financial reins of Europe, able to eject any profligate member. The euro exchange rate tells us that markets are not impressed.
The gold price tells us that ‘investor meltdown’ may be waning and fundamentals reasserting themselves. While the consolidation continues to ebb and flow the battle between the two continues. To get a fuller picture, please subscribe through www.GoldForecaster.com or www.SilverForecaster.com to our newsletters on these subjects. Gold prices have been severely undermined by increased gold lending by some financial institutions in return for U.S. dollars. This precipitated the latest fall in prices. Additionally, persistent equity-market weakness has triggered periodic liquidation of gold and other hard assets, as we mentioned in the last few days. An announcement by the I.M.F. that it would increase its lending by providing precautionary liquidity lines helped calm sovereign-risk fears, but only briefly. Government bond yields across the Eurozone rose, with French and Belgian bonds feeling additional pressure after a Belgian newspaper reported that a Franco-Belgian bailout plan for troubled bank Dexia has proved unworkable. That's seen putting more pressure on France to provide additional rescue funds, threatening its AAA rating. France's 10-year bond yield rose to 3.62%, while the Belgian 10-year yield rose to 5.21%. At the 10-year level, Italy's yield rose to 6.87%, while Spain rose to 6.68%.
Markets are moving on fear and liquidation actions, which will appear and reappear in the coming days/weeks.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,553.41 | Sf1,546.64 |
US | $1,691.80 | $1,695.50 |
EU | 1,262.34 | €1,252.77 |
India | Rs.88,591.11 | Rs.88,632.26 |
-- Posted Wednesday, 23 November 2011 | Digg This Article
| Source: GoldSeek.com
