-- Posted Tuesday, 17 January 2012 | | Disqus
Asia jumped the gold price $23 to $1,666 ahead of London’s opening before slipping back to the $1,660 level just before London opened. The euro fell to the €1: $1.2667 after the European credit downgrades after business on Friday. With the euro recovering slightly in Asia to 1€: $1.2753, gold in the euro rose again to €1,301.60.
London Fixed the gold price at $1,662.00 and in the euro at €1,299.758. The euro stood at little stronger at €1: $1.2787 [up from yesterday’s €1: $1.2653] at the time. Ahead of New York’s opening the gold price was trying to go better at $1,663.50 with the euro trying to inch stronger at €1: $1.2788, leaving the euro price of gold at €1,300.78.
Silver moved up just before London opened to $30.20. Ahead of New York’s opening silver stood at $30.47.
Gold (very short-term)
The gold price should have a mixed day, in New York today.
Silver (very short-term)
Again, the silver price should have a mixed day, in New York today.
Price Drivers
Even the bailout fund in the Eurozone has been downgraded from AAA to AA+. We agree with Professor Stiglitz that the Eurozone will not regain confidence and may well lose the growth it has through austerity measures sapping economies. The euro will take a very long time before it can re-gain past confidence again. Gold is now showing this, as the price rose through the €1,300 level.
While there is no immediate crisis in the U.S. the U.S. financial position is little better. We remain of the opinion that some drastic changes will have to be made to the financial system to regain anywhere near the confidence level it had before 2007. In the global world of finance it is clear that gold must play an active role in shoring up confidence in currencies in this process.
The changes in the gold world in China appear to be aimed at making the Chinese gold market more professional and reliable. Chinese smelters are very keen to have their refining meet the London standard of “Good Delivery”. Bearing in mind that exports of gold from China are illegal, we see China reaching out to meet global standards internally first. Some may speculate that they will in time export gold, but could there be other intentions afoot? We believe that there are great changes on the way in the gold market that will change its shape entirely. Perhaps it’s time to start learning Mandarin Chinese? We are producing an article that asks the question, “Will China become the hub of the global gold market?” For sure, gold can expect some structural changes in the future that will elevate not only its reputation but its price in the future. [Much 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 | Sf1,574.25 | Sf1,568.54 |
US | $1,663.50 | $1,643.50 |
EU | 1,300.78 | €1,296.97 |
India | Rs.84,630.56 | Rs.84,599.98 |
-- Posted Tuesday, 17 January 2012 | Digg This Article
| Source: GoldSeek.com
