-- Posted Thursday, 16 February 2012 | | Disqus
With gold now sitting at $1,716 in London’s morning, after a fixing in London at $1,733.00 yesterday p.m., the market is seeing the euro slip, taking gold and silver down with it. The euro opened in London at €1: $1.2992 as the market mood turned against the Eurozone. In London, gold Fixed at $1,716.00 and in the euro at €1,320.508. In the euro gold is doing well but is sad in the dollar. The euro held at €1: $1.2997 ahead of New York’s opening and gold started to rise through $1,718.00 leaving the euro gold price at €1,321.84.
Silver faltered with gold and opened in London at $33.10 Ahead of New York’s opening it stood at $33.20.
Gold (very short-term)
Gold will show a positive bias in New York today.
Silver (very short-term)
Silver will move with gold but show a more positive bias, in New York today.
Price Drivers
E.U. leaders remain jaundiced with Greece as they fear that the government will not implement the approved austerity measures. Now that Portugal, despite it cooperation with the E.U. in implementing austerity measures is seeing its economy contract to the point that debt to GDP is still rising, up a further 10%, on pre-austerity measures. This tells all that the shrinkage of cash flow to weak governments is likely to make their debt unsustainable and ensure the Eurozone debt crisis and banking crisis will continue. The way out seems to have closed, so the market’s performance is telling us that it expects a default. Gold is moving well in the euro. There is a point at which gold will move up against the euro more strongly.
Demand in Europe is good and in Asia is again on the rise and expected to continue to support prices. Even central bank buying will continue to do the same. The market will not see central banks move prices as they buy without doing so. They ‘buy the dips’ when volume is available, so remain unseen in the price action.
The big difference with the current consolidation and previous ones is that this one precedes a very major move, one that has a proportion similar to a trend change or move. Certainly the fundamental elements that will cause the price to trigger, one way or the other, are in front of us. All we can do is remain prepared and patient, because when the move comes it will be sudden, dramatic and large. [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, the World Gold Council has confirmed the huge, growing demand from China and central banks in 2011. More of the same is expected for 2012!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,595.42 | Sf1,578.01 |
US | $1,71820.00 | $1,720.00 |
EU | 1,321.84 | €1,304.68 |
India | Rs.85,109.72 | Rs.85,140.00 |
-- Posted Thursday, 16 February 2012 | Digg This Article
| Source: GoldSeek.com
