-- Posted Tuesday, 20 December 2011 | | Disqus
Gold returned above $1,600 overnight and stood at $1,603.00 an ounce ahead of London’s opening today with the euro standing at €1: $1.3080. It was then Fixed at $1,605.00, up $7 on yesterday afternoon’s fixing and in the euro at €1,227.909 up €5 on yesterday’s p.m. Fix, while the euro stood at €1: $1.3071. Ahead of New York’s opening gold rose slightly to $1,607.5 with the euro at 1€: $1.3083 leaving the gold price in the euro at €1,228.69.
The silver price opened slightly higher at $29.37, barely changed on yesterday. Ahead of New York’s opening silver stood at $29.43.
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
Some market makers tell us that one of the reasons for a drop in gold prices was a measure of making the books look good through profit taking and year end book squaring by large investors, including mutual funds and macro hedge funds. This process allowed traders and those wanting lower prices the conditions to achieve their aims.
One of the most positive developments of late has been a modest recovery in emerging market demand. In Dubai, a nation with a very large Indian ex-patriot worker population, dealers have seen an increase in physical buying when prices fall below $1,600. In China expectations remain of good Lunar New Year demand.
There is a good deal of talk about Chinese demand falling because growth is slowing. We find this difficult to accept. 8% growth is remarkable in a nation of 1.3 billion. The rate of growth of the Middle classes is far faster as growth spreads to the cities in the center and west of the country. These people are gold buyers of note. Hence, we do not see a slowing of the growth of Chinese gold demand.
A more stable Indian Rupee will contribute to stable Rupee gold prices, a pre-requisite before Indian investors return enthusiastically to the gold market. The emerging world as a whole accounts for around 70% of global gold jewelry demand.
We will be covering the possibility of “Gold Confiscation” in the weeks/months/years to come in our newsletters/website [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 | Sf1,493.70 | Sf1,493.70 |
US | $1,607.50 | $1,595.15 |
EU | 1,228.69 | €1,225.62 |
India | Rs.85,020.68 | Rs.84,375.46 |
-- Posted Tuesday, 20 December 2011 | Digg This Article
| Source: GoldSeek.com
