-- Posted Friday, 23 March 2012 | | Disqus

New York closed at $1,642.50 yesterday. Asia barely moved it back up to $1,647.30 ahead of London' opening. The euro was also barely changed at 1€: $1.3240 after weakening in New York. Later in London’s morning the Fix was set at $1,651.00 and in the euro at €1,246.038 [same as yesterday] while the euro stood at €1: $1.3250. Ahead of New York’s opening it stood at $1,649.00 and in the euro €1,245.47 while the euro was at €1: $1.3240.

Silver held again at $31.61 down 50 cents in Asia. Ahead of New York’s opening it stood at $31.64.

Gold _{(very short-term)}

Gold will consolidate with a weaker bias, in New York today.

Silver _{(very short-term)}

Silver will consolidate with a weaker bias, in New York today.

Price Drivers

The jeweler’s ‘strike’ in India has been sufficient to change government policy on the additional gold duties imposition. It appears that these are being withdrawn. This has happened in the past too. Government all over the world wants to dominate its citizens. When it comes to gold governments feel that they should control it. This happens in most parts of the world, particularly while times are economically positive.  In India, there are a people so used to corruption that they expect it. When government minsters steal money from their people by underselling national coal assets, the people act as though they expected it and move on with their lives. But when governments reach into their personal lives and try to control gold, the people say that’s too much and react. Government knows that they cannot control this cash/gold/private financial world and succeed, as is the case in the developed world.   [To follow our regular Indian and Chinese gold market sections, subscribe to our newsletter at www.GoldForecaster.com .] As a result the Indian people have such low confidence levels in their government that they will revolt in one way or another. It is important to understand this because it defines the limits of government actions when push comes to shove and governments need to harness the gold in the country.  In Turkey, the Turkish government is trying to persuade Turks to transfer their vast personal holdings of gold into the country's banking system. Its holdings are hard to quantify.  The Istanbul Gold Refinery estimates the figure at 5,000 metric tons. We don’t think they will succeed. They could resort to the confiscation of their citizen’ gold. Let the developed world be warned! After all when government can’t control their finances they will have to turn to gold to restore any semblance of confidence in their currency. This may not be as far away as most people think. We have no doubt that even developed world governments have already prepared contingency plans for such an event.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

-- Posted Friday, 23 March 2012 | Digg This Article | Source: GoldSeek.com

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