-- Posted Tuesday, 3 January 2012 | | Disqus
Asia and London have continued to turn the downward spike into a recovery wit gold price sitting at $1,590 as London opened. The euro appeared to have recovered slightly too at €1: $1.2986 leaving gold in the euro at €1,224.35. The last Fixing of last year was at $1,531 and the first Fixing of 2012 was at $1,590.00 and in the euro at €1,221.198. Ahead of New York’s opening the gold price fell to $1,591.00 and the euro stood at €1: $1.30395 leaving gold in the euro at €1,220.23.
Silver moved up slightly with gold ton open in London at $28.43 up from Friday’s $28.45. Ahead of New York the silver price was still falling at $28.81.
Gold (very short-term)
The gold price should have a mixed day, in New York today.
Silver (very short-term)
The silver price should have a mixed day, in New York today.
Price Drivers
The start of a brand new year does not bring a brand new market. The developed world remains overburdened with debt which may well overpower the income with which to manage such debt on both sides of the Atlantic. 2012 may see some of these nations completely overpowered by their debt.
The gold price saw a heavy downward ‘spike’ threatening to take it down to $1,500 or below. The ‘spike’ was on thin volumes, which is why we are seeing a rapid recovery, also on thin volumes. But today may see volumes return to ‘normal’ levels. This will tell us better where gold and silver should be. Silver has not performed as well as gold and will need a sharp pull upward from gold to recover to levels that inspire confidence in its future. This may well happen. The technical picture is at the forefront of market thinking now. This picture may well see changes that highlight that the technical picture describes symptoms in the main and may well not be a driving force in themselves. [More on this in our newsletters and on our website [So subscribe through www.GoldForecaster.com or www.SilverForecaster.com]
We are noticing that the world remains besotted with political figures and are seeing, more and more, that these individuals will be financial saviors. We believe that they will become scapegoats or fall guys in the days ahead as the fundamental faults of the systems remain far beyond the capacities of individuals to resolve. The financial system requires not a good mechanic but a deep renovation, for which the developed world democracies with their different agendas do not have the appetite for. We further believe that central bankers at least are seeing this and may well be discussing what they can do about it [and whether gold, as collateral could have a more important role to play].
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,484.16 | Sf1,477.29 |
US | $1,591.00 | $1,571.25 |
EU | 1,220.23 | €1,214.26 |
India | Rs.84,695.29 | Rs.83,378.38 |
-- Posted Tuesday, 3 January 2012 | Digg This Article
| Source: GoldSeek.com
