-- Posted Friday, 13 April 2012 | | Disqus
New York lifted the gold price to the same level as it opened at $1,675.20 up $17 on yesterday. Overnight Asia held it there too, ahead of London’s opening. The euro held pretty steady at €1: $1.3146 just 25 cents better. Today, gold Fixed it at $1,670.50 and in the euro at €1,269.859 while the euro stood at €1: $1.3155. Ahead of New York’s opening it stood at $1,673.30 and in the euro €1,272.95 while the euro was at €1: $1.3145.
Silver jumped to $32.33 in New York. At the opening in London it slipped a tiny amount to $32.25. Ahead of New York’s opening it stood at $32.26.
Gold (very short-term)
Gold should consolidate at current levels then move with a positive bias later today, in New York.
Silver (very short-term)
Silver should consolidate at current levels then move with a positive bias later today, in New York.
Price Drivers
The jump in precious metal prices is being attributed to the renewed prospects of quantitative easing. The last fall was attributed to the unlikely prospect of quantitative easing. ‘You pays your money and you takes your choice!’ Short-term precious metal prices will be driven by the debate.
A more likely candidate is the acceptance of current Rupee gold prices as a new floor area which provides acceptable entry levels. China just barrels on, buying!
These Asian factors are unlikely to change or become sensitive to economic events. Asian buying as we have discussed this week is basic to the Asian psyche and uninfluenced by the prospect or not of more QE. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]
Are you not bewildered by the variety of forecasts on the gold and silver prices these days? The general view is for higher prices, but some get price indigestion when a figure of over $2,000 is mentioned. What does become apparent is the thought of prices below $2,000 places them in one gear. Above that we move into an entirely different gear, not only on precious metal prices, but in all markets irrespective of the item. This will be a monetary phenomenon. Some analysts believe markets will return to normal in a couple of year’s time. Perhaps that is just wishful thinking. After all we look for an extrapolated reality don’t we? What is out there that is going to “normalize” markets. The structural conflicts between politics and finance and national objectives are deep seated attitudes of the powers that be. Are they going to come to some harmony that brings us all a ‘normality’. We struggle to give such attitudes credibility, don’t you? The objectives of politics and finance are rapidly becoming irreconcilable and these have to be reconciled before any actions can be taken to bring a harmony between the two. Until then gold will continue to act as an effective insurance, pending such dreams.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,527.97 | Sf1,513.98 |
US | $1,673.30 | $1,654.71 |
EU | 1,272.95 | €1,259.20 |
India | Rs.85,848.66 | Rs.85,242.31 |
-- Posted Friday, 13 April 2012 | Digg This Article
| Source: GoldSeek.com
