-- Posted Thursday, 8 March 2012 | | Disqus
The gold turned around strongly rising to $1,685 before the closure of New York and rose slightly in Asia’s time to $1,688 before London opened. But then London opened and steadily took the gold price to $1,702 ahead of the morning Fix. The morning Fix in London set it at a higher $1,701.50 and in the euro at €1,287.26 while the euro stood at €1: $1.3218 60 a cent higher than yesterday. Ahead of New York’s opening it stood at $1,702.40 and in the euro €1,286.87 while the euro was at €1: $1.3229.
Silver ran ahead fast to open in London over $34 in London. Ahead of New York’s opening it stood at $34.10.
Gold (very short-term)
Gold is expected to consolidate at higher levels, in New York today.
Silver (very short-term)
Silver will consolidate at higher levels with a stronger bias, in New York today.
Price Drivers
What would our day be like without the next episode of the financial world’s ‘soapie’, the Greek Tragedy? Today we have the episode of private bondholders agreeing to take a 70% plus write-down of its debt. It is expected that the required two-thirds acceptance rate of the deal will happen, forcing those unwilling to agree into agreeing.
Asian demand has picked up and is partly responsible for the rise in the gold price. Traders can see that the physical selling is terminating, if it has not already done so. With any subsequent pick up in demand, traders about-face and move to the buy side. This is why we are looking at higher prices now.
Very short term moves can be attributed to almost any world event, but the reality is that the gold price is made up of a mixture of different influences synthesizing to define the daily gold price. A growing feature of this mix is the shorter duration of extreme swings and the smaller distances of those swings. Add to that the shortening time of the corrections and ability of the gold and silver price to hold the levels they fall to in a narrower consolidation pattern.
The technical picture has also changed to some extent following the changed shape of demand and supply. We have seen the underlying direction of the gold and silver prices change four times in the last month whereas before such a change could take several months to make just two changes. This promises an increase in the influence of fundamental factors over the technical picture in the weeks, months and year to come.
[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 | Sf1,551.31 | Sf1,543.19 |
US | $1,702.40 | $1,681.00 |
EU | 1,286.87 | €1,280.19 |
India | Rs.85,417.92 | Rs.84,515.57 |
-- Posted Thursday, 8 March 2012 | Digg This Article
| Source: GoldSeek.com
