-- Posted Friday, 3 February 2012 | | Disqus
New York closed at $1,759.20 up $15 on the previous close. Asia held it there overnight before London lifted it to at Fix to $1,759.50 up $12. In the euro it was fixed at€1,335.484 while the euro was at $1: $1.3175.
Ahead of New York’s opening the gold price was tending higher above the Fix’s level at $1,760.00 with the euro at €1: $1.3182 leaving the euro price of gold at €1,335.15.
Silver demonstrated its inherent strength and jumped 60 cents in New York trading to reach $34.30 then traded in Asia at $34.25. In London ahead of New York’s opening silver stood at the same level at $34.23.
Gold (very short-term)
The gold price should show a stronger bias, in New York today.
Silver (very short-term)
The silver price should show a stronger bias, in New York today.
Price Drivers
As we forecast yesterday the strong move through into resistance took place. The tide continues to favor gold and particularly silver, which is showing a higher testosterone level than gold at the moment. It refuses to pull back with gold but leads the way on the rise.
The Fed indicated that it has the option to increase Quantitative Easing to prevent deflation and to stimulate the growth in jobs. Such extra money printing is needed to fill the holes cause by shrinking liquidity, and the slowing velocity of money. It appears that the economy is being gently pressed into realizing that cash is no longer king, but must be put to work. To do this the broad economy must be made to see that cash is losing value and that assets are a superior investment [including houses]. This has to be positive for gold and silver. The tricky part is in making this happen without allowing the rising need for liquidity for this purpose to be overtaken by the deflating of liquidity and the slowing velocity of money. Deflation can accelerate forcefully and rapidly if not handled properly. Should this happen then liquidity expansion, at too slow a rate, may not combat it but accelerate the need for it. In either case, gold and silver, as both cash and an asset, does well.
Here we are Friday, the end of the week and still no news from Greece. Be ready over the weekend for grave announcements. Even if they don’t come we remain on a knife’s edge in the Eurozone crisis! 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].
In India, prices are down slightly as the Rupee strengthens, while gold rises in all other currencies.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,609.78 | Sf1,602.37 |
US | $1,760.00 | $1,747.50 |
EU | 1,335.15 | €1,329.05 |
India | Rs.85,747.20 | Rs.85,776.91 |
-- Posted Friday, 3 February 2012 | Digg This Article
| Source: GoldSeek.com
