-- Posted Tuesday, 28 February 2012 | | Disqus
This morning Asia lifted the gold price up from New York’s close at $1,766 to $1,775, before London held it there after its opening. The euro is steady at yesterday’s levels at €1: $1.3435. In London, gold Fixed at $1,774.75 up almost $10 and in the euro at €1,321.482 up €5. The euro remained steady in front of New York’s opening.
Silver opened in London over $35.60 not retreating at all. Ahead of New York’s opening it still stood at $35.60.
Gold (very short-term)
Gold will show a consolidating pattern, in New York today.
Silver (very short-term)
Silver will show a steady level again, in New York today.
Price Drivers
It seems that the E.U. plus weaker member’s sovereign debt crisis has reached a new watershed point. Yes, Germany did approve of the Greek bailout, but Angel Merkel lost support in the effort. It appears that Germany will not come to the aid of other E.U. Members that may need a bailout in the future. In turn the I.M.F. will not be in a position to come to these nations’ support, without the E.U. putting more money into their ‘bailout funds’. The G-20 made it clear that while they would assist, they wouldn’t until the E.U. had added more money of their own. With these positions hold when push comes to shove? The choice will then be lose debt-distressed members from the Eurozone or pay up. We have to wait and see what then happens. The driving force taking us to ‘assist or eject,’ will be economic growth. If the E.U. continues into recession and down, then these weak members cannot afford to repay their debt and its interest rates. In turn this leaves the question mark over the E.U. its currency and the global world monetary system. [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].
Demand for gold is low, but picking up in Asia at the moment. This should not be read as a change of trend, but as today’s situation. The Rupee has a steady performance at the Rs.49: $1 level and the current consolidation pattern is convincing Indian buyers that prices are not likely to fall further. These conditions must be in place before demand from India rises.
Please note that in both China and India the gold sold to the retail trade has to be imported by the banks. Their stock levels dictate when the gold market in London sees demand. When stocks are low this demand comes in.
Silver demand continues high as it is within reach of the poorer elements of society. This and steady industrial demand is keeping the silver price robust.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,591.86 | Sf1,588.59 |
US | $1,774.75 | $1,767.75 |
EU | 1,328.48 | €1,318.28 |
India | Rs.87,122.48 | Rs.86,990.98 |
-- Posted Tuesday, 28 February 2012 | Digg This Article | Source: GoldSeek.com