-- Posted Friday, 13 January 2012 | | Disqus
New York closed at $1,649 and Asia held it around those levels but London pushed it down ahead of the Fix to $1,642 while the euro looked stronger at €1: $1.2836 leaving gold in the euro at €1,279.21 down €18 on yesterday. London Fixed the gold price at $1,642.00 and in the euro at €1,281.711. The euro stood at €1: $1.2811 at the time. Ahead of New York’s opening the gold price saw downward pressure taking it to $1,640, with the euro slipping down to €1: $1.2788 leaving gold in the euro a tad higher at €1,282.45.
Silver held over $30 but tended to slip slightly in London’s morning. Ahead of New York’s opening silver slipped below $30 to $29.95.
Gold (very short-term)
Again, the gold price should have a mixed to weaker bias, in New York today.
Silver (very short-term)
Again, the silver price should have a mixed to weaker bias, in New York today.
Price Drivers
The European quantitative easing we saw from the E.C.B. has given the banks sufficient liquidity to buy Spanish and Italian bonds sending a wave of relief through the Eurozone banking system. While over the longer term such injections decrease the value of the euro, short-term the relief has allowed the euro to bounce slightly. As we have stated the gold price is inversely linked to the state of the developed world monetary system not to the euro. Today’s fall in the euro price of gold, as well as its over €100 rise, since the beginning of the year, demonstrates this reality. It is the ‘pulling back from the brink of collapse’ that has spurred the fall in the gold price temporarily. As with all good soap operas, the next episode in the Eurozone debt crisis saga, is on its way.
More importantly for gold and silver the turn around in their prices since the year’s beginning has highlighted the growing importance of Asian demand alongside central bank demand as the real price drivers of the gold price. This tide is and will move the fulcrum of the gold market eastward in time. The change will increase the dominance the London bullion banks have over the global gold market as they build a truly 24-hour gold market. This will take a few years but it is coming.
The influence of COMEX and the U.S. banks on the gold price is waning as is seen in the falling net long speculative positions and the lowering presence of U.S. banks in that market and their collateral activities in the physical gold market. Bear in mind that the U.S. portion of demand in the jewelry, gold bar and gold coin markets is currently around 8% against Asian demand in total of around 70%+. It’s a question of the development of the actual distribution systems and their efficient global presence. [More on this in our weekly newsletters and on our website [So subscribe through www.GoldForecaster.com or www.SilverForecaster.com]
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,552.18 | Sf1,571.34 |
US | $1,640.00 | $1,655.00 |
EU | 1,282.45 | €1,297.33 |
India | Rs.84,473.94 | Rs.85,371.11 |
-- Posted Friday, 13 January 2012 | Digg This Article
| Source: GoldSeek.com
