-- Posted Wednesday, 8 February 2012 | | Disqus
New York closed at $1,745 as the euro rose in the belief that the Greek debt crisis has been solved. The euro jumped 1% at the same time to €1: $1.3265. Both Asia and London held it there. London then Fixed it at $1,743.00. In the euro it was Fixed at €1,315.174. The euro held at that level throughout the morning. Ahead of New York’s opening the gold price was rising again at $1,746.30 with the euro at €1: $1.3280 leaving the euro price of gold at €1,314.99 in the euro.
Silver continued to show considerable robustness and opened at $34.35 in London. Ahead of New York it stood at $34.33.
Gold (very short-term)
Gold should continue to show a stronger bias in New York today.
Silver (very short-term)
Silver price continue to show a stronger bias in New York today.
Price Drivers
In the belief that the leaders of Greece have resolved their differences the euro started to rise, taking gold with it. Yes, it is only the first step in a long process, but it was the most intractable, so the market thinks. The next step is to persuade private holders, to accept a voluntary write-off of 70%, of that debt. Nevertheless markets across the world were ready for some good news, which is why they all took off, including those of precious metals.
As we said yesterday, Asia’s gold markets don’t react to developed news on a day-to-day basis. That’s why the gold price barely moved there. London showed a certain pragmatism taking a wait-and-see line, waiting for definite news.
A point investors are sure to note is that gold rose as equities and the euro rose. Those believing that gold will fall on good economic or debt news were disappointed. Why you may well ask? Gold rose its most from 2005 to 2007 while the global economy was at its strongest. Gold moves for other reasons though. It is these that will keep it rising. [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].
Meanwhile, one of the worries gold investors have is the state of the dollar. The Federal Reserve's latest weekly money supply report from last Thursday shows seasonally adjusted M1 rose $13.2 billion to $2.233 trillion, while M2 rose $4.5 billion to $9.768 trillion. And it will continue to rise every week. At what point will faith in the dollar sag? There are so many structural problems in the financial system that major growth and a strong government determined to reform the system is needed before the reasons gold price rise can be driven away. Is this just a pipe dream?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,593.94 | Sf1,580.96 |
US | $1,746.30 | $1,719.00 |
EU | 1,314.99 | €1,311.81 |
India | Rs.85,830.65 | Rs.84,265.38 |
-- Posted Wednesday, 8 February 2012 | Digg This Article
| Source: GoldSeek.com
