After New York closed at $1,711 Asia at week’s beginning at first saw gold move to $1,713, but London took it down to $1,706 as the euro slipped back to just above €1: $1.31. The morning Fix in London set it at $1,705.25 and in the euro at €1,299.931 up €14 higher, while the euro stood at €1: 3118. Ahead of New York’s opening it stood at $1,704.15 and in the euro €1,299.99 while the euro was at €1: $1.3109.
Silver slipped back in line with gold to just under $34 in London. Ahead of New York’s opening it stood at $33.92.
Gold(very short-term)
Gold is expected to tighten its consolidation range before a large move, in New York today.
Silver(very short-term)
Silver will tighten its consolidation range before a large move, in New York today.
Price Drivers
At week’s start, the final acceptance of the Greek bailout package is being completed. Private bondholders who refused to accept the offer from Greece will get a 100% payout from their Credit Default Swaps, setting a dangerous precedent for any future situation in another country. For E.U. leaders the key achievement is the prevention of a full blow banking crisis. Few believe that Greece can avoid a full default at some point in the future. But gold and silver investors should not just focus on the Greek situation but on what the European quantitative easing mean for the value of the euro. Well managed currencies have risen in value while the value of both the dollar and the euro have fallen. But the damage done to well managed currencies as they rise in value precipitated the weakening of those currencies, so as to keep international competitiveness. But this has defeated the wisdom of managing an economy in a prudent fashion. This has left currencies an unreliable measure of prices. We see this reflected in part in the price of oil now and in the rising prices of silver and gold. Will this change? No, the priorities of European Union members will swing to promoting growth which implies more currency weakening [alongside the U.S. dollar].
We reiterate what we have pointed out before and that is that there is a reduction in systemic liquidity that demands freshly printed money to fill the gaps left by these deflationary influences. ECB President Mario Draghi gave banks more than €1 trillion ($1.31 trillion) of three-year loans in December and February. Until deflation is turned back to growth, this process will continue. As the oil price rises, so that deflationary influence persists, sucking money out of countries that import oil. The entire process is gold positive. More than that, the process itself throws doubts of the system’s ability to retain value or stability. Gold and silver become retreats from the uncertainty spawned by these dangers. There is no sign of a change in system needed to give currencies dependable values. [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.comorwww.SilverForecaster.com].
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,567.22
Sf1,551.31
US
$1,704.15
$1,702.40
EU
1,299.99
€1,286.87
India
Rs.85,130.82
Rs.85,417.92
-- Posted Monday, 12 March 2012 | Digg This Article | Source: GoldSeek.com
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.