-- Posted Thursday, 1 March 2012 | | Disqus
New York took the gold price down to $1,690 down $100 before Asia and London took it slightly higher to $1,719 after its opening. The euro fell 2 cents against the dollar from €1: $1.3453 to €1: $1.3322. In London, gold Fixed at $1,721.00 up $31 and in the euro at €1,289.815 down from €1,329.961. The euro was almost unchanged at just slightly weaker at €1: $1.3343 down another cent at the time. Ahead of New York’s opening gold was slipping at $1,717 and at €1,288.22 at that time.
Silver opened at $34.92 down from $37.15 yesterday as New York opened. Ahead of New York’s opening it stood at $34.80.
Gold (very short-term)
Gold will steady before bouncing, in New York today.
Silver (very short-term)
Silver will steady before bouncing, in New York today.
Price Drivers
New York took the opportunity to slam the gold price down on the day that end-of-month accounting happened, after London had closed and trading was not at full heat. The heavy one-way traffic of selling met no support until the gold price hit $1,690 after which it turned back up to finish in Asia at $1,715. Commentators point to Technical reasons for the fall and this did, no doubt, trigger stop-loss selling.
Once again we have two distinctly different pressures, one coming from the developed market, technically driven, investors against fundamental, emerging market demand that looks for bargain prices. In the shadowy background we have central banks looking to buy large volumes of gold on the fall, so as to have little to no visible impact on the price. This gives rise to an important question, “Are markets technically or fundamentally driven, or a combination of both?” The next week or so will demonstrate the answer to this question.
A question also being asked by many is, “”Is the gold price being manipulated down?” Allied to this has to be, “Are the ‘manipulators strong’ enough to keep the price down or will fundamental demand overwhelm their efforts.” The days ahead will also answer this question in what will be an increasingly volatile market. Please note that in the last fortnight the technical picture has changed three times! [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].
We have to say that there was no news of sufficient significance to warrant such a sell off. The month-end accounting activities looked responsible.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,553.20 | Sf1,601.19 |
US | $1,717.00 | $1,774.75 |
EU | 1,288.22 | €1,328.58 |
India | Rs.84,553.67 | Rs.87,500.00 |
-- Posted Thursday, 1 March 2012 | Digg This Article
| Source: GoldSeek.com
