-- Posted Tuesday, 7 February 2012 | | Disqus
New York closed at $1,720 after falling to $1,715 and Asia lifted it to $1,727. London then pulled it back down to $1,723 before it was Fixed at $1,720. In the euro it was Fixed at €1,308.980. The euro was slightly weaker at the time at €1: $1.3140. Ahead of New York’s opening the gold price was slipping again with the euro slightly at $1,719 with the euro at €1: $1.3104 leaving the euro price of gold at €1,311.81.
Silver continued to ignore the fall of gold and held it at $33.72 at London’s opening. Ahead of New York it stood at $33.48.
Gold (very short-term)
Gold should consolidate again at these levels in New York today.
Silver (very short-term)
Silver price should maintain its strength in New York today.
Price Drivers
We continue to receive the reassurances that Greece will bow to E.U. pressures and give the needed resolutions today. We are now into the six weeks needed to finalize the bailout for Greece. However, much more needs to be done to complete the transaction including getting the agreement by creditors to the voluntary write-down of their debt. We wait with baited breath. We do not expect the euro to fall until there is a conclusion to the matter. We do see a palpable rise in fears for Greece though.
Later in London’s morning news filtered out that the Greek government and opposition had agreed to 15,000 civic servant’s jobs going and for the minimum wage level to be cut by 20%. If this is confirmed as what the E.U. and the I.M.F. is happy with, then perhaps we will see Greece stay in the E.U. Will the euro then recover? Tomorrow will see an answer to this question, perhaps? Then we look to see if the voluntary write down of debt will happen. If not, then the drama will continue! Greek tragedies usually drain you.
Certainly, the gold price in New York continues to respond to the moves in the euro and to the daily perception of the talks over Greece. Below the surface, Asian demand remains strong enough to keep the upward pressure on the price. While there will be no disclosure of central bank buying until well after the event, we believe this is continuing to ‘buy the dips’ when decent volume comes on offer. Both these sets of demand are insensitive to the day-to-day Eurozone debt crisis. Perhaps a sobering reminder for precious metal investors is that traders focus on short-term factors whereas the true gold and silver investor in for the long haul, notes these factors to the extent that they affect the underlying trends of these markets. The long trend is primarily driven by Asian and central bank demand, not the state of play in Europe’s financial politics. [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 | Sf1,580.96 | Sf1,600.12 |
US | $1,719.00 | $1,744.00 |
EU | 1,311.81 | €1,328.46 |
India | Rs.84,265.38 | Rs.85,883.28 |
-- Posted Tuesday, 7 February 2012 | Digg This Article | Source: GoldSeek.com