The day before yesterday gold moved up $10 in Asia to $1,623. The U.S. came in, in a mixed day to take it down to $1,616. Asia held it there ahead of London’s opening where it opened at $1,612. Then gold was Fixed in London at $1,609 and in the euro at €1,231.440 while the euro stood at €1: $1.3066. At New York’s opening the sellers came in and pushed the price down to $1,606 and the euro to €1: $1.3025 leaving gold in the euro at €1,233.01.
After Fixing at $29.30 the silver price followed gold down and stood at $29.20 as New York opened.
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
Perhaps a day without bad news was sufficient for the gold price to bounce.With the E.C.B. coming to the rescue of European banks with $645 billion, the pressure lifted from the banks, where it was felt that a banking crisis was almost inevitable. That and the yield on Spanish bonds falling didn’t change the markets that much, but did induce a mood change that was responsible for gold looking stronger. That was yesterday. Today, the markets are telling us that the relief the E.C.B. gave to banks was good but not enough to stop the steady rot in the Eurozone debt and banking crisis. A good deal of the money lent to the banks found its way into government bonds, such a Spanish bonds and did not flow out from the banks to the broad economy. Gold, because it is being treated as linked to the euro slipped with it.
We are inclined to agree more and more that the E.U. leaders do not seem able to resolve the Eurozone crisis. With the market showing itself underwhelmed by the E.C.B. loans to banks, we expect the steady decay of finances in the Eurozone to continue. The use of gold as collateral has been established now for two years, time and again. It is only a matter of time before this is publicly confirmed to shore up confidence in the euro. As a result, 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 orwww.SilverForecaster.com to our newsletters on these subjects.]
With gold prices still falling in the Rupee, we are seeing demand from India steadily rising.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,506.19
Sf1,493.70
US
$1,606.00
$1,595.15
EU
1,233.01
€1,225.62
India
Rs.84,696.43
Rs.84,375.46
-- Posted Thursday, 22 December 2011 | Digg This Article | Source: GoldSeek.com
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