-- Posted Tuesday, 8 May 2012 | | Disqus
Gold Today – New York closed at $1,638.70. Asia then took the price down to $1,627 early in London’s morning. The euro remarkably has held above €1: $1.30 at €1: $1.3032 leaving gold in the euro at €1,248.47 down €10 on yesterday. The Fixing in London today was set at $1,627.00 and in the euro at €1,250.769. Ahead of New York’s opening it continued to slip to stood at $1,625.00 and in the euro, which also continued to slip, €1,249.66 while the euro was at €1: $1.3003.
Silver Today - Silver was$30.07 in New York, but fell in Asia to $29.70. Ahead of New York’s opening it stood at $29.60.
Gold (very short-term)
Gold will prove volatile again, capable of going either way, today in New York.
Silver (very short-term)
Silver will prove volatile again, capable of going either way, in New York today.
Price Drivers
Gold - The Indian Parliament has recanted on its increase of duties of gold imports. This was expected as the Jeweler’s strike there was called of once this indication was given. This has cleared the way for the industry to get back to what it was before the proposal was put forward. However, the level of the Rupee continues to be the deterrent to buying there. At Rs.53.1255 gold prices in India continue to be close to record highs. In the eyes of Indian investors as the gold buying ‘season’ winds down there, prices need to stabilize at a level long enough to convince those buyers that a ‘floor’ has been found. Once Investors believe that a ‘floor’ is there, they will return to the market. However, a weak Rupee is the cause of record gold prices not demand. Until they realize that Indian investors will continue wary of buying. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]
Silver – The silver price held over $30 by the skin of its teeth overnight, after following gold down. But in London’s morning silver slipped through that barrier again to trade at $29.67.
The silver price continues to follow gold, wherever it shall go. As a consequence, when the very large seller in the futures market and in the quietest time of gold’s day comes in to dump gold the price sags. We believe that this may not last too long as central bank buyers continue to pick up this gold as the price falls. This makes a closing of short positions very difficult without causing the price to move higher. It looks like traders versus central bankers here. Traders don’t fight crusades.
Both metals are at the point where no clear direction is being given, increasing the risks to both traders and investors. This is no time for widows and orphans!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,500.28 | Sf1,512.16 |
US | $1,625.00 | $1,641.25 |
EU | 1,249.66 | €1,258.53 |
India | Rs.86,406.94 | Rs.86,805.71 |
-- Posted Tuesday, 8 May 2012 | Digg This Article
| Source: GoldSeek.com
