-- Posted Wednesday, 25 April 2012 | | Disqus
New York closed yesterday at $1,641.20 up $3. The euro was steady at €1: $1.3172. Today, gold Fixed it at $1,641.25 and in the euro at €1,241.490, while the euro stood at €1: $1.3220. Ahead of New York’s opening it stood at $1,641.00 and in the euro €1,240.83 while the euro was at €1: $1.3225.
Silver was$30.85 overnight, moving with gold. Ahead of New York’s opening it stood at $30.82.
Gold (very short-term)
Gold should continue to consolidate with a weaker bias, in New York.
Silver (very short-term)
Silver should continue to consolidate with a weaker bias, in New York.
Price Drivers
Today, we heard that in the U.K. Gross domestic product contracted 0.2% from the fourth quarter of 2011, when it shrank 0.3%. It’s officially in a double-dip recession. Economic conditions on the East side of the Atlantic are just not good. What is more important is the view looking ahead. This is pessimistic and uncertainty remains palpable. The real way to get our of debt and recessions is to increase income so as to pay off debt, we believe. To balance budgets from diminishing income, simply reinforces failure.
Fiscal Union in the Eurozone, while a dream in Germany would not succeed in the weaker parts of Europe as Sovereign debt conditions emphasize. A departure from the Eurozone by weaker members would, after the initial capital tsunami, make the euro stronger. But Germany doesn’t want that either. The E.C.B. is happy with the euro where it is. As trading ranges tighten in both currencies and precious metals they are warning of a breakout one way or the other. Which is it to be? [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]
Meanwhile central banks continue to quietly buy gold, according to the I.M.F.
· Russia bought 16.55 tonnes in March.
· Mexico bought 16.81 tonnes.
· Turkey bought 11.48 tonnes.
· Argentina bought 7 tonnes.
· Kazakhstan bought 4.3 tonnes
Other central banks bought smaller amounts. A total of 12 central banks were buyers. We have no reason to believe that this well established trend will change. Gold Investors should weigh this feature of the gold market very heavily as this emphasizes the monetary aspect of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,491.50 | Sf1,500.73 |
US | $1,641.00 | $1,644.00 |
EU | 1,240.83 | €1,248.48 |
India | Rs.86,242.76 | Rs.85,601.81 |
-- Posted Wednesday, 25 April 2012 | Digg This Article
| Source: GoldSeek.com
