-- Posted Wednesday, 7 March 2012 | | Disqus
The gold price fell heavily at one point hitting the $1,660 area at one point before closing in New York at $1,674.10. Both Asia and London held it in that area before the morning Fix in London set it at a higher $1,682.50 and in the euro at 1€,278.69 while the euro stood at €1: $1.3158. Thereafter the tone was better and gold held at that area despite traders trying to pull it down again. Ahead of New York’s opening it stood at $1,681.15 and in the euro €1,279.90 while the euro was at €1: $1.3135.
Silver is again showing fortitude as it traded in London at the $33.17 area. Ahead of New York’s opening it stood at $33.45.
Gold (very short-term)
Gold is expected to consolidate with a weaker bias, in New York today.
Silver (very short-term)
Silver will consolidate, in New York today.
Price Drivers
World growth is on the mind of most markets as they weaken in the face of poor economic data. Australia’s growth was announced as plus 0.4% of GDP a disappointing figure for one of the most vibrant economies in the world.
A look at the strong currencies of such currencies tells us that non-commodity related industries in such countries are suffering badly and bringing overall growth down enormously. In this global world, national economies are finding that the global economy is having a distinctly detrimental effect. Each sector must now compete globally not just locally. Each currency must maintain international competitiveness, which the Australian dollar is not. Hence, the Japanese and Swiss interventions, to weaken their currencies. The net result is that money itself is being cheapened worldwide, in a race to keep economies thriving. Over time little could be more gold and silver positive.
The priority levels for governments in the developed world are therefore to:
· Attract votes through policies, no matter what the consequences.
· Try to ensure economies stay healthy to attract votes.
· Cheapen money through its over-issuance.
· Keep exchange rates low to keep international competitiveness.
· Use the global economy for national interests, not global ones.
The net result has been and will be to lower the value of currencies continuously. Of course this must be done at a rate that consumers can absorb without revolting. Precious metals then climb continuously over time. Pullbacks are therefore opportunities. [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].
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,543.19 | Sf1,549.14 |
US | $1,681.00 | $1,690.00 |
EU | 1,280.19 | €1,285.07 |
India | Rs.84,515.57 | Rs.85,139.29 |
-- Posted Wednesday, 7 March 2012 | Digg This Article | Source: GoldSeek.com