New York took the price of gold to $1,666 and Asia lifted it slightly more to $1,668 before London pushed it to $1,659 ahead of the gold Fix. Weakened slightly to €1: $1.2992 placing the euro gold price at €1,276.94 down €6 on yesterday.
London Fixed the gold price at $1,659.00 and in the euro at €1,277.038. The euro stood at €1: $1.2991. Ahead of New York’s opening the gold price was tending lower at $1,655.00 with the euro at €1: $1.2980 lower than yesterday, leaving the euro price of gold at €1,275.04.
Silver is slightly lower at $31.89 off the top again but only slightly. Ahead of New York’s opening silver stood at $31.84.
Gold(very short-term)
Again, the gold price should have a mixed bias in New York today.
Silver(very short-term)
Again, the silver price should have a mixed bias in New York today.
Price Drivers
And still no words on Greece! We have no doubt that the future of Greece’s place in the Eurozone hangs in the balance. For sure, if they agree to interest rate and debt levels above what they can pay in the worst of times, they would do better to leave the Eurozone. Likewise creditors are aware of precipitating a ‘credit event’ leading to the CDS paying out 100% in place of too damaging a voluntary lowering of debt and interest on Greek debt. At some point it is hoped that a mid-point can be reached, but can it?
With the Chinese New Year yesterday, Chinese retail buying has stopped until the holiday is over. Central bank demand, Indian demand and Eurozone demand is there to fill the gap. If gold is strong today, we will have evidence of strong gold price support, without Chinese retail demand. Once that demand returns, physical gold supply may prove insufficient. We remind readers that the gold price is currently where it is not because of U.S. and Eurozone demand but the factors we have just mentioned. Readers most likely are still under the impression that the gold price relies on developed world demand for its current level. Nothing could be further from the truth. Developed world markets in the short-term can make the gold price swing both ways, but the flowing tide of the gold price stems from the East mainly. We include reports on Indian and Chinese demand in our weekly newsletters [So subscribe through www.GoldForecaster.comorwww.SilverForecaster.com].We are also publishing an article on what a workable monetary system, incorporating gold, could have as its underlying principles. We are also looking more closely at the possibility of gold confiscation now as the concept of Protectionism has been flagged by President Obama when he announced the Commission on fair trade and a call for manufacturing jobs to be returned to the U.S.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,542.05
Sf1,549.01
US
$1,655.00
$1,670.00
EU
1,275.04
€1,283.63
India
Rs.82,923.78
Rs.83,516.70
-- Posted Wednesday, 25 January 2012 | Digg This Article | Source: GoldSeek.com
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