-- Posted Thursday, 2 February 2012 | | Disqus
New York closed at $1,744.30 and Asia only lifted it by $2 to $1,746 before London lifted it to at Fix to $1,747.50. In the euro it was fixed at €1,326.678 while the euro was at $1: $1.3157.
Ahead of New York’s opening the gold price was again holding the Fix’s level at $1,747.5 with the euro at €1: $1.3148 leaving the euro price of gold at €1,329.05. The trading range of gold and silver is narrowing bringing buyers and sellers to a balanced position.
Silver was still steady at $33.66. In London Ahead of New York’s opening silver stood at $33.83.
Gold (very short-term)
The gold price should consolidate ahead of a strong move, either way, in New York today.
Silver (very short-term)
The silver price should consolidate ahead of a strong move, either way, in New York today.
Price Drivers
Every day that a solution to the Greek tragedy fails to materialize adds to the likelihood of a Greek default. Plan B becomes more and more likely.
Meanwhile gold and silver continue to be robust, not falling back much, holding their ground quickly before trying to rise again. The euro too is relatively steady against the dollar. However, we are of the opinion that this is the case with a ‘little help from their friends’. We expect it to remain so until a big piece of news comes out that affects the structure of the Eurozone’s monetary scene. We could be close to that!
We do get some perspective on matters when we look at China’s behavior towards the Eurozone. They have been asked to pour some money in to help with the rescue of the weaker Eurozone nations. They initially appeared willing to do so, but are now sitting watching and waiting for the politicians to sort it out first. They’re not doing so. Their risk is that so much can go wrong costing the Chinese their investment. If they have that view, then why should anyone else step in? Rather be prudent. Failure is more than likely to produce a banking crisis measuring 7 on the Richter scale. Gold can only benefit from success, failure or a continuation of the current talking. How can Greece give more when it is in an economic depression [Its economy will contract more than 10%]? And if it does promise more, it’s unlikely that they can deliver on those promises, no matter how hard they try. We do not think that the gold price is discounting the worst, yet.
Meanwhile Venezuela has succeeded in bringing its 160 tonnes of gold from the developed world’s central bank vaults. As we have seen with Iran, holding gold means nothing if a foreign central bank can seize it. The same is true for gold investors! We are waiting to hear an announcement from two companies that may have resolved this danger. To get more of the right perspectives on the gold and silver markets and where gold and silver prices are going, 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 | Sf1,602.37 | Sf1,600.12 |
US | $1,747.50 | $1,744.00 |
EU | 1,329.05 | €1,328.46 |
India | Rs.85,776.91 | Rs.85,883.28 |
-- Posted Thursday, 2 February 2012 | Digg This Article
| Source: GoldSeek.com
