-- Posted Monday, 5 December 2011 | | Disqus

Asia held the gold price at below the New York closing at $1,746 before London opened. It held there through London’s early morning ahead of the Fix, which was then set slightly lower than the market at $1,744.00 and in the euro it was Fixed at €1,296.076 while the euro stood at€1: $1.3456. Ahead of New York’s opening gold stood at $1,731.00 and in the euro at €1,287.47.

The silver price opened at $32.85 Fixed yesterday at $33.28 held right through in Asia to stand ahead of New York’s opening at $33.58.

Gold _{(very short-term)}

The gold price will continue to narrow its trading range but may move strongly either way thereafter in New York today.

Silver _{(very short-term)}

The silver price will continue to narrow its trading range in New York today, before a breakout one way or the other.

Price Drivers

The focus for gold this week will be the series of Eurozone lawmakers. We are not convinced that they will make that much headway as there continues to be fundamental disagreement on the way forward among them. It is clear that the concept of financial sovereignty in the Eurozone does not lie well on the members, leaving the potential for a breakdown in the currency world centered on the euro, but spreading outwards from there. We remind you that the Eurozone’s meeting of Finance Minister’s is being signaled as a ‘make or break’ meeting for the euro. We warn our U.S. readers that the financial tsunami that may flow from an unsuccessful meeting will reach the shores of the U.S. with potentially devastating effect. A successful conclusion to that meeting will see the euro soar. We discuss the gold price prospects in our upcoming issues of the newsletters. [Subscribe through www.GoldForecaster.com or www.SilverForecaster.com to our newsletters on these subjects.]  Ireland has already said it wishes to reclaim its financial sovereignty.  Investments that are not dependent on national systems are becoming preferred, such as gold & silver.

The Reserve Bank of India has signaled that it will intervene to stop the Rupee weakening further. We do not know if they will set a target exchange rate with the U.S. dollar or if they wish to see it strengthen. The weakening of the Rupee was, at first seen as the gold price rising, but with the near 15% drop in the currency since the year’s beginning wise investors there, are seeing that it is the Rupee falling instead and are buying gold. This must filter down to ground level before we see Indian gold buying surging.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

-- Posted Monday, 5 December 2011 | Digg This Article | Source: GoldSeek.com

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