-- Posted Wednesday, 21 March 2012 | | Disqus
New York closed at $1,647.90 yesterday. Asia pulled it back up to $1,656.50 ahead of London' opening. The Fix was set at $1,656.00 and in the euro at €1,248.210 [same as yesterday] while the euro stood at €1: $1.3267.
Ahead of New York’s opening it stood at $1,649.25 and in the euro €1,246.62 while the euro was at €1: $1.3231.
Silver held again at $32.21 in Asia. Ahead of New York’s opening it stood at $32.03.
Gold (very short-term)
Gold should move to complete its consolidation, before another strong move either way, in New York today.
Silver (very short-term)
Silver should move to complete its consolidation, before another strong move either way, in New York today.
Price Drivers
Central bank demand appears to have increased but make no mistake we would not be able to get accurate figures until they are reported by the IMF/World Gold Council at month end. As we have said before these deals are made with central banks are made by dealers offering stock direct to the central bank dealers and may well not have any price impact until other demand attempts to buy, when the lack of stock then forces the price upwards. It is a low profile way of buying, with minimum price impact and yet may well accommodate very large transactions. With somewhere around 500 tonnes a year being bought this way last year, after pre-2009 sales of between 400 and 500 tonnes annually, central banks comprise a major source of demand but half the size of either India or China. The big difference between emerging world demand and central bank demand is that the emerging world supplies a steady stream of demand with a measure of seasonality. Central bank demand is supply oriented, relatively unpredictable, but also from the emerging world in its entirety. The developed world is not a buyer [yet] but is no longer a seller.
These two demand factors account for around 2,400 tonnes of gold a year, which rarely returns too the market.
Jewelry demand is often a misnomer, meaning different things when the west to east definitions are compared and when the gold content is compared. It is easy to get confused when jewelry demand is [wrongly in our view] compared to investment demand. To follow our regular Indian and Chinese gold market sections, subscribe to our newsletter at www.GoldForecaster.com .
Quite frankly you need to subscribe to a newsletter such as ours if you want too understand the different facets of the gold or silver markets.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,502.69 | Sf1,504.00 |
US | $1,649.25 | $1,644.25 |
EU | 1,246.62 | €1,248.20 |
India | Rs.83,566.85 | Rs.82,861.98 |
-- Posted Wednesday, 21 March 2012 | Digg This Article
| Source: GoldSeek.com
