-- Posted Wednesday, 14 March 2012 | | Disqus
New York gave us the strong move we forecast yesterday and it was down to close at $1,670 in New York. London and Asia took it down further to the morning Fix in London which was set at $1,662.00 and in the euro at €1,271.614 down €20, while the euro stood at €1: 3070. Ahead of New York’s opening it stood at $1,648 and in the euro €1,293.11 while the euro was at €1: $1.3053.
Silver stood at slightly lower levels at $33.03 in London. Ahead of New York’s opening it stood at $32.76.
Gold (very short-term)
Gold is soon to look for a ‘floor’, in New York today.
Silver (very short-term)
Silver is going to look for a ‘floor’, in New York today.
Price Drivers
The euro continues to slip, now back down to the 1€: $1.30 level and with Spain now coming back onto the screen alongside Portugal, we find it difficult to see why the euro should strengthen. But the fall in the gold price of $40 was 2.5% whereas the fall in the euro was only less than 1%. So why did the gold price fall? The technical picture as we forecast yesterday pointed strongly one way or the other. Traders in New York once again saw the opportunity to hit the gold price and ‘stop-loss orders were triggered and the trading crowd either ran for cover or went short. But more significantly, sellers appeared in London and were not met by buyers. Where do the charts now point? We have just produced an article called, “What’s driving the gold & silver prices”, which gives a fuller picture than just the day’s moves. [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].
If you were down at the beach recently, you will remember how the waves went in cycles with about on-in-7 of the waves going back much further or rising up the beach much further despite the direction of the tide. It was simply the moment that that particular wave went higher. We would like to attribute so much more to why it went that way but then have to accept the mundane reason that it was just that moment that conditions were right for in. The same is true of yesterday’s move. If this reasoning is unacceptable to investors they must ask themselves did anything fundamental change yesterday? The fall in the gold price in the Indian Rupee has been very large and will bring buyers from there into the gold market.
If they point to better economic performance numbers, then investors must ask, “Does improved economic performance bode well for all and bad for the gold & silver prices”. The biggest percentage rises were from 2005 to 2007 when economic prospects looked wonderful. So no we do not accept that a good recovery is bad for gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,528.15 | Sf1,599.43 |
US | $1,647.87 | $1,695.40 |
EU | 1,262.65 | €1,293.11 |
India | Rs.82,105.12 | Rs.84,642.85 |
-- Posted Wednesday, 14 March 2012 | Digg This Article
| Source: GoldSeek.com
