-- Posted Monday, 2 April 2012 | | Disqus

New York closed at $1,668.20 and then Asia held it slightly higher over the weekend. London then came in at $1,664 at the open.  In one of the tightest Fixing sessions we have seen for a long time gold Fixed it at $1,664.00 and in the euro at €1,246.162 barely changed on yesterday’s am Fix while the euro stood at €1: $1.3353. Ahead of New York’s opening it stood at $1,666.24 and in the euro €1,252.81 while the euro was at €1: $1.3316.

Silver rose to $32.49 in New York. London held it there as the euro remained steady. Ahead of New York’s opening it stood at $32.49.

Gold _{(very short-term)}

Gold trading range is narrowing ahead of a strong move, either way, in New York today.

Silver _{(very short-term)}

Silver trading range is narrowing ahead of a strong move, either way, in New York today.

Price Drivers

The week opened as it closed on Friday. The new news over the weekend is that Europe managed to boost its “Bailout Fund” to €800 Billion, with other funds available in a push at €250 billion.  Commentators were calling for €1.3 trillion, €500 higher than achieved. Some E.U. leaders felt that a fund to carry on business as usual is just no replacement for reforms of the unwieldy socialist labor practices that keep government over staffed at all levels and spending far too much. After all if growth is to be sustainable then it must not come from government ‘passengers’ but drivers of the economies. Apart from the emerging world outperforming the developed world the IT revolution has had a tremendous impact on employment. So many small as well as large business just don’t need staff when the computer does the job better. So some very dramatic fundamental attitudes and systems must change if decent employment levels are to be achieved in the future. Competition by its nature too, cuts down the number of businesses in a sector and eliminates the inefficiencies of the uncompetitive. It is clear that a revolutionary attitude will spring up eventually if a new approach to employment is not taken.

With such uncertainty and fear of the future, investment ‘out of the system’ in precious metals is becoming less risky than in the overall business sector. This can only be seen over a long period of time [we have had 5 years of this period so far]. Eventually, we see central banks embracing gold as a back up to their currencies across the globe as they seek to shore up confidence in them. [To follow our weekly commentary on the Chinese and Indian gold markets, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.] The reality of the state of government and the developed world’s financial situation has not changed significantly over the last five years ensuring [with adequate rescue funds] that fundamental restructuring of the developed world’s financial system will not be effectively undertaken until we see a clear breakdown in the face of rescue funds proving inadequate.

Regards,

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

 

Global Gold Price (1 ounce)
	Today	1 day ago
Franc	Sf1,508.27	Sf1,502.51
US	$1,668.25	$1,664.00
EU	1,252.81	€1,248.31
India	Rs.84,874.72	Rs.84,714.84

 

-- Posted Monday, 2 April 2012 | Digg This Article | Source: GoldSeek.com

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