-- Posted Tuesday, 27 December 2011 | | Disqus
Asia did not add any strength to the gold price taking it just below $1,600 ahead of London’s opening. When London opened there was little change either. The euro opened little changed at €1: $1.3071. Just ahead of New York’s opening the market was barely changed at $1,597.50 and the euro stood at €1: $1.3072 leaving gold in the euro at €1,222.08.
While Asia took the silver price to below $29, London opened with silver just above $29 at $29.05. Ahead of New York the silver price stood at $28.94.
Gold (very short-term)
The gold price should have a quiet to weaker day on low volumes, in New York today.
Silver (very short-term)
The silver price should have a quiet day, in New York today.
Price Drivers
A piece of news came over the weekend that will change the world of currencies and the gold price structurally. Initially, it has been largely ignored by the markets as it is not a short-term factor. We believe that it will also have a structural impact on the gold market, perhaps hastening the day when Hong Kong joins London as the two prime centers for the 24-hour gold market.
Its impact may take years to have its full impact, but the force of its impact cannot be diminished or its path changed. Investors would do well to think long and hard about it. It is the agreement between China and Japan to bypass the U.S. dollar in bilateral trade. This trade is only $345 billion a year, currently but the fact that this step has been taken is a watershed moment. We will be discussing the full impact of this on the gold price in our newsletters/website [So subscribe through www.GoldForecaster.com or www.SilverForecaster.com to get the full important perspective on this subject.]
The second major event likely to impact gold is the seeming failure of the Bank of Japan to weaken the Yen. We cannot recall when such interventionist exercises have really been successful and we do feel that Japan would have to issue unlimited government bonds and sell Yen heavily to weaken the currency. This would have to be done to the extent that currency traders would be made to see the Yen as a genuinely weak currency. Switzerland is succeeding so far, as it is prepared to follow that path. The net result, if both are really successful is that there will not longer be a currency ‘safe haven’ outside the foundation of paper currencies, the U.S. Dollar and its value is inexorably fading slowly.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,492.15 | Sf1,505.71 |
US | $1,597.50 | $1,608.75 |
EU | 1,222.50 | €1,231.72 |
India | Rs.85,146.75 | Rs.85,247.66 |
-- Posted Tuesday, 27 December 2011 | Digg This Article
| Source: GoldSeek.com
