Gold closed in New York at $1,631. Asia lifted it to $1,639. London took it back up slightly to $1,635 where it was Fixed and in the euro at €1,255.182 while the euro stood at €1: $1.3026. Ahead of New York’s opening gold held at $1,630 area with the euro at 1€: $1.3007 leaving the gold price in the euro at €1,253.17.
The silver price opened strong and steady at $30.85 down 50 cents on yesterday.It slipped to$30.20 ahead of New York’s opening.
Gold(very short-term)
The gold price should have a weaker bias, in New York today.
Silver(very short-term)
The silver price should have a weaker bias, in New York today.
Price Drivers
It just doesn’t seem to stop. Greece is moving to a depression and is unlikely to be able to pay the softer agreed terms, which forced severe austerity onto Greece. A default now seems unavoidable. With the fear factor so high and in the light of Spain and Italy joining the bailout candidates such a default will almost inevitably breed contagion and a smaller future Eurozone. Structurally, the Eurozone was faulty in mixing such diverse economies under one single currency. How long will the Greek then Eurozone tragedy take to play out to the curtain remains to be seen? The falling euro describes the situation well.
Yesterday, we asked, “But why is gold falling?” [See this essay in our newsletters - Subscribe through www.GoldForecaster.com orwww.SilverForecaster.com to our newsletters on these subjects.]Again the technical picture is showing a different picture to the fundamental picture. Please note that the fundamentals have dominated the Technical picture since the turn of the century and will do for the next decade or more. While some analyst are running for cover as they believe the bear market in gold is on us, we see the fundamental demand and monetary picture painting a very different scene.
Right now, for instance Indian demand has been low in the last few weeks. Bear in mind India is the largest importer of gold in the world. China is second. Since the beginning of the year the Indian Rupee has fallen over 18%. For the Indian gold investor this means that they have seen the Rupee price of gold rise that much. Since the $1,920 peak price of gold, the gold price in dollar terms is now at $1,640 or 15% off its high. To the Indian investor, the gold price has pulled back in Rupee terms to where it was before. Indian investors love to buy at what they feel is a new ‘floor’ price. We are almost there now. As to the demand from China it’s reaching record levels each month and continues to move ahead as the Chinese New Year approaches.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,544.01
Sf1,559.21
US
$1,630,00
$1,666.00
EU
1,253.17
€1,263.31
India
Rs.87,555.45
Rs.88,622.87
-- Posted Wednesday, 14 December 2011 | Digg This Article | Source: GoldSeek.com
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