The week saw the gold price open at above $1,700 in Asia after the Thanksgiving holiday in the U.S. Just ahead of London’s opening. The euro stood at €1: $1.3366 a cent down on yesterday and gold in the euro at €1,266.16 $2 down on this time yesterday. The London Fix is again calling the shots on the gold price as it Fixed high at $1,714.00 and in the euro at €1,280.060. The price held around that level but slipped slightly to $1,710.60 ahead of New York’s opening and in the euro to €1,280.87.
The silver price in Asia this morning stood at $31.6 before jumping to $32 just ahead of London’s opening. Ahead of New York’s opening it stood at $31.92.
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
Since Germany’s failed bond auction Italy has struggled to raise money paying over 7% in the market now. Belgium and Portugal have been downgraded at the end of last week, setting the stage for more and accelerating bad news for the euro, which declined to 1€: $1.32 in Asia before picking up to €1: $1.33 just ahead of London’s opening. Now the market is desperate for good news and in awe of bad news.We hear rumors that the I.M.F. is going to help Italy then the I.M.F. denies these rumors. Prior to this China was supposed to be helping Europe then this was denied. Today China is going to help the U.K. What next?Banks and ratings agencies are sounding their loudest warnings yet that the euro area risks unraveling unless its guardians quickly intensify efforts to beat the two-year sovereign debt crisis.
The floods of capital leaving Europe headed for the dollar were countered last week by European banks pulling back capital from overseas to shore up their balance sheets. Once this is complete, non bank capital is expected to continue leaving the Eurozone as we see in the declining euro. Banks have been told not to lend outside their countries, which is an ‘unofficial’ capital control. Perhaps we should expect these to become ‘official’? Contagion and turmoil alongside fear are at full speed in Europe. Gold is doing its job rising or holding value as the uncertainty saps confidence in the euro again.
The report on the Fed’s loans in the midst of the ‘credit crunch’ in 2007/2008 describe just how large a support the Fed was as the publicized reports understated their role significantly. Going forward we should expect to see at least similar numbers for the Eurozone and more if the contagion crosses the Atlantic. [To get a fuller picture, subscribe through www.GoldForecaster.com or www.SilverForecaster.com to our newsletters on these subjects.] What is crystal clear is that the monetary system can not withstand much more of this battering of confidence!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,576.83
Sf1,558.97
US
$1,698.22
$1,698.22
EU
1,280.87
€1,269.22
India
Rs.88,874.22
Rs.88,434.81
-- Posted Monday, 28 November 2011 | Digg This Article | Source: GoldSeek.com
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