-- Posted Wednesday, 16 May 2012 | | Disqus
Gold Today – New York closed at $1,542.60 down $16 and fell further in Asia again to $1,537.5 where it Fixed in London. The euro stood at €1: $1.2714 down 1.5 cents against the dollar. This morning in London, gold Fixed at €1,208.725 down only €5. Ahead of New York’s opening it looked stronger at $1,539.45 and in the euro, which also continued to slip, €1,209.31 while the euro was at €1: $1.2730.
Silver Today - Silver closed at $27.64 in New York and rose in London opened at $27.37 after Fixing at $27.35. Ahead of New York’s opening it stood at $27.39.
Gold (very short-term)
Gold is looking for a ‘floor’ level around current levels, today in New York.
Silver (very short-term)
Silver is looking for a ‘floor’ level around current levels, today in New York today.
Price Drivers
Gold – Short-term traders are still pushing precious metal prices lower but know that at any time the prices could turn. The bad news in the Eurozone continues to press the euro further down now at €1: $1.2717 another 1.5 cents down. Asian buyers have begun salivating over these prices and we expect to see them entering the market even more that we saw yesterday. The short-term Technical picture is signaling that the downside is minimal. Let’s see how traders feel today after New York closes.
Meanwhile, in Greece the Greek President Karolos Papoulias was told by the nation’s central bank chief that financial institutions are worried about their survival as Greeks pull out euros amid a deepening political crisis. Central bank head George Provopoulos told Papoulias that Greeks have withdrawn as much as €700 million ($891 million) and the situation could worsen. We feel it is a prelude to the imposition of Exchange Controls in the very short-term. If these are not imposed [which are permitted under the Maastricht Treaty – in euros] then the failure to do so will be an act of irresponsibility as Greece is drained of capital.
The Indian Rupee weakness to Rs.54.475 sees a continuation of its fall against the U.S. dollar and the raising of gold prices there. But this is being countered by the fall in the gold price in the dollar, leaving the Rupee price at multi week lows as you can see below. Yesterday, saw Indian demand come to life and we expect the same today and while prices are at these levels.
Silver – Silver lurched lower to a new support level today, so we continue to expect a new ‘floor’ shortly. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,452.55 | Sf1,456.54 |
US | $1,539.45 | $1,564.00 |
EU | 1,209.31 | €1,215.51 |
India | Rs.83,892.33 | Rs.84,389.53 |
-- Posted Wednesday, 16 May 2012 | Digg This Article
| Source: GoldSeek.com
