-- Posted Friday, 9 December 2011 | | Disqus
New York closed at $1,707.00 where Asia held it until London’s opening. London did little to change it but tried to lift it to $1,712. Then it was Fixed at $1,712.00 and in the euro at Fixed at €1,281.341 while the euro stood at€1: $1.3361. Ahead of New York’s opening gold rose again to $1,720 with the euro at 1€: $1.34 leaving the gold price in the euro at €1,283.58.
The silver price opened at $31.77 down a dollar on yesterday in line with the gold price move. It recovered with gold to $32.00 ahead of New York’s opening.
Gold (very short-term)
The gold price may wait for the conclusion or announcements from the E.U. conference, in New York today.
Silver (very short-term)
The silver price may wait for the conclusion or announcements from the E.U. conference, in New York today.
Price Drivers
Keeping our eyes on the gold price ‘ball’, it is clear that the politicians are trying to repair the structural political problems and to ensure no future debt crises, before they fix the solvency crisis. The E.C.B. announcement that they expect banks to raise capital that the E.C.B. will not dive into the market to buy distressed nations bonds and will not pump up the ‘bailout’ fund up to anywhere near market expectations, turned all markets down including the precious metals markets.
Essentially, it appears that the banks will have to sort out their own problems now, with only relatively modest support from the E.U. This is consistent with the wants of Germany, who favor the hard solution, rather than the softer [but perhaps less painful] option of printing money. The likelihood of a major banking crisis and credit crunch has increased dramatically, we feel. Do not be surprised to see at least one major bank tumble into liquidation, setting off a domino effect among the involved developed world banks. In our opinion, a banking crisis will prove more destructive on the developed world monetary system than an E.U. crisis. Certainly in the next year we may see one or more members of the present E.U. depart as they will be unable to effect sufficient austerity measures to cut deficits and repay residual debts. In short, national needs have overridden global ones. This ensures a positive longer-term gold and silver price, despite potential short-term wide volatility.
We are producing an article on why banks [which could include some central banks supplies] are leasing gold. This may be a significant monetary event for gold. [Subscribe through www.GoldForecaster.com or www.SilverForecaster.com to our newsletters on these subjects.]
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,583.78 | Sf1,608.30 |
US | $1,720,00 | $1,742.00 |
EU | 1,283.58 | €1,298.34 |
India | Rs.89,500.20 | Rs.90,078.82 |
-- Posted Friday, 9 December 2011 | Digg This Article
| Source: GoldSeek.com
