New York held the gold price at $1,658.10 barely changed on yesterday. Overnight Asia held it there too, ahead of London’s opening. The euro held pretty steady at €1: $1.3119 just 20 cents better. Today, gold Fixed it at $1,655.50 and in the euro at €1,261.333 while the euro stood at €1: $1.3125. Ahead of New York’s opening it stood at $1,654.71 and in the euro €1,262.51 while the euro was at €1: $1.3141.
Silver held at $31.62 from New York’s close at $31.55 through Asia and to the opening in London. Ahead of New York’s opening it stood at $31.53.
Gold(very short-term)
Gold could move strongly either way later today, in New York.
Silver(very short-term)
Silver could move strongly either way later today, in New York.
Price Drivers
More and more observers are stating that the global economy is losing growth. In China there is evidence of slower growth too. This still leaves Chinese growth at very strong levels. Unlike the western world, one looks at the objectives of the Chinese government to see where the economy is headed. They have planned that it should continue to grow at a quick pace allowing to the infrastructure and development of a richer society to keep up. Whether in fourth gear or fifth gear makes little difference to the pace of growth of gold demand in the country, The government wants the new middle classes to invest in gold and is doing so themselves via an outside agency. We therefore expect to continue to see record growth of gold imports into China in 2012 and well beyond. This is sufficient to hold gold prices at or above current levels.
In India, the weakness of the Rupee is a constant barrier to larger demand in the country as Rupee prices are volatile. As you can see in the table below the Indian Rupee price for an ounce of gold [without the local premiums] remains in the mid-Rs.85,000 area, having been as low as Rs.82,000 and as high as Rs.87,000. We do not accept that Indian investors will cease buying once gold passes a certain level. He simply buys less with the money he has available, but he spends what he has on gold. However, he is a cautious buyer, buying only when he see the gold price finding a solid floor, so that he won’t pay too much. Once he sees that stability in the price, he enters the market. But he is Rupee oriented, not U.S. dollar oriented. Hence, we watch the Rupee price when looking at the state of the Indian gold market. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.comand at www.SilverForecaster.com.]
What is made clear in this series of articles we are producing in our newsletters is that Alan Greenspan gave a statement on why the legal ownership of gold can be withdrawn. This would allow for the confiscation of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,513.98
Sf1,516.74
US
$1,654.71
$1,659.00
EU
1,259.20
€1,262.51
India
Rs.85,242.31
Rs.85,314.08
-- Posted Thursday, 12 April 2012 | Digg This Article | Source: GoldSeek.com
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