-- Posted Thursday, 15 December 2011 | | Disqus
Gold closed i n New York at $1,572. Asia was stunned and held it there until London took it back to $1,584. It was then Fixed at $1,590 in the euro at €1,223.642 while the euro stood at €1: $1.2994. Ahead of New York’s opening gold held at the level set by the Fix at $1,590.43 with the euro at 1€: $1.3010 leaving the gold price in the euro at €1,222.47.
The silver price opened weak and weakening at $28.80 where it Fixed in London, before recovering with the euro to $29.05 ahead of New York’s opening.
Gold (very short-term)
The gold price should have a steady to weaker bias, in New York today.
Silver (very short-term)
The silver price should have a steady to weaker bias, in New York today.
Price Drivers
The big feature of the day is the precipitous fall of the gold price. The pace and extent of the fall has amazed everybody. While the Technical picture has been pointing to this for a while, the speed of the fall is really, a downward ‘spike’. If it was an upward ‘spike’ how would you react?
There are certain features to this fall that are strange and, yes, suspicious! We will touch on just one of the features we are seeing now. It is being linked to the euro as the euro falls. Why? What common denominators are there between the euro and the gold market? The implication that many may be associating between the two is that the gold price rose because of doubts about the continued existence of the euro. But even that does not fit the fall. Clearly there is far more that meets the eye than we are seeing. “But why is gold falling?” [See this essay in our newsletters - Subscribe through www.GoldForecaster.com or www.SilverForecaster.com to our newsletters on these subjects.]
We can only caution against emotions running away with investors. It would also be good to remind people that the Technical picture gives us signposts to supports and resistance and likely direction, but don’t initiate these moves. It is important to keep constantly in touch with the Technical picture though.
We pointed to the gold price in the Indian Rupee yesterday. Today it is back at levels Indian investors were buying at recently. Also bear in mind that central banks do not chase prices either way. They are interested in the number of ounces on offer, not the price they have to pay. After all, when push comes to shove, it will be the number of ounces they hold, because likely few people will accept their currency, when they have to use gold?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,496.03 | Sf1,559.21 |
US | $1,590.43 | $1,666.00 |
EU | 1,222.47 | €1,263.31 |
India | Rs.85,295.55 | Rs.88,622.87 |
-- Posted Thursday, 15 December 2011 | Digg This Article
| Source: GoldSeek.com
