-- Posted Thursday, 23 February 2012 | | Disqus
New York took the gold price up to $1,778 up $19 from yesterday’s close. Asia and London held it there at London’s opening. The euro was stronger at €1: $1.3292 at the opening in London. In London, gold Fixed at $1,776.50 up $21.75 on yesterday and in the euro at €1,334.410 up €9.40. The euro slipped slightly in front of New York’s opening to €1: $1.3307. Ahead of New York gold started to climb again $1,776.00 and in the euro to €1.335.59.
Silver opened in London at $34.60 up 2% following gold. Again silver is falling less than gold on the pullbacks, but keeping pace with gold on the rise. Ahead of New York’s opening it stood at $34.57 up $1 on yesterday.
Gold (very short-term)
Gold will show a stronger bias, in New York today.
Silver (very short-term)
Silver will show a stronger bias, in New York today.
Price Drivers
There has been a palpable change in the tone of the gold and silver markets in the last day. This tone reflected markets taking their eyes off Greece and looking at the ‘big’ picture. The euro is climbing showing attention has moved away from there.
Growth in the U.S. is their but nowhere near as vigorous as the media would have us believe. Growth in China is lower than double figures reflecting the anemic global economy. Growth in Europe is non-existent while the E.U. is still in recession. The weaker members of the E.U. are moving towards a depression.
So while Greece has gained a reprieve, national debt levels worldwide are rising as a percentage of GDP because government revenues are falling as a result of poor growth. So the available resources in government hands to properly cover debt levels is dropping, raising credit fears again. So while the value of government debt is falling, the value of gold is rising, proving the case for gold, yet again. As the banking system places so much of its underlying assets into “risk-free” government debt their asset base is shrinking. In addition banking revenues are falling in line with under-performing economic growth.
That’s why the rally in equities has quickly lost momentum and gold and silver have reverted to the high road. [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].
This sober view by markets will persist for the foreseeable future and maintain a good environment for precious metals.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,610.57 | Sf1,599.64 |
US | $1,776.00 | $1,753.90 |
EU | 1,335.59 | €1,325.55 |
India | Rs.87,396.96 | Rs.86,405.88 |
-- Posted Thursday, 23 February 2012 | Digg This Article
| Source: GoldSeek.com
