-- Posted Wednesday, 18 January 2012 | | Disqus
New York pulled the gold price from $1,663.50 to $1,651 before Asia held it at that level ahead of London’s opening. London was inclined to lift the price slightly higher at the opening, while the euro stood then at €1: $1.2766 placing the euro gold price at €1,293.28 at London’s opening.
London Fixed the gold price at $1,657.00 and in the euro at €1,290.800. The euro stood at little stronger at €1: $1.2837 at the time. Ahead of New York’s opening the gold price was trying to slip a little at $1,654.65 with the euro weakening a little at €1: $1.2806, leaving the euro price of gold at €1,292.09.
Silver was pulled back in New York and at London’s opening today stood at $29.91. Ahead of New York’s opening silver stood at $30.24.
Gold (very short-term)
The gold price should have a mixed to lower day, in New York today.
Silver (very short-term)
Again, the silver price should have a mixed to lower day, in New York today.
Price Drivers
The Spanish bond auction went well yesterday and helped the euro to rise back towards €1: $1.28 while the gold price slipped slightly. This illustrates our point that the gold price is not held to the euro / exchange rate, despite market assumptions that the two move together.
Global markets are currently gliding along almost in denial of what could happen if the threatened structural fractures we are being warned about appear. The developed world economy is slowing down and with the news from Saudi Arabia that they would like to see a $100 ongoing oil price, the slowdown may become entrenched. This reduces government tax receipts and the cash flow from which they can sustain their debt levels. This makes financial accidents more likely!
Today is a big day for Greece as discussions on the extent of debt write-off, the interest rate to be paid on new bonds and the maturity dates of these bonds, remains a contentious issue. What has put the cat among the pigeons, is that many hedge funds have taken positions in Greek debt at distressed prices on the belief that they can force either a better repayment percentage then the market priced in when they bought, or alternatively, they may well force a “credit event” which would force a credit default swap payout which would give them even better profits. They have only losses to make if they accept a lower ‘voluntary’ payout. They are bound by their own shareholders to follow this course, irrespective of the damage to Greece, the banking system, the markets and the other collateral damage they may cause. And be under no illusions, the damage a default of Greece [every man and his dog are telling us that this can’t happen – which is why we are nervous] would have on global financial markets could be deep and structural. [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 | Sf1,561.99 | Sf1,574.25 |
US | $1,654.65 | $1,663.50 |
EU | 1,292.09 | €1,300.78 |
India | Rs.83,419.18 | Rs.84,630.56 |
-- Posted Wednesday, 18 January 2012 | Digg This Article
| Source: GoldSeek.com
