-- Posted Tuesday, 22 May 2012 | | Disqus
Gold Today – New York closed higher at $1,593.00 and at London’s early morning fall back to $1,578. The euro was stronger at the time London at €1: $1.28 before falling back to €1: $1,2776. It Fixed at. The euro was weaker at €1: $12770, where it was when the morning Fixing took place. In the dollar it Fixed at $1,575.75 and in the euro at €1,233.947. Ahead of New York’s opening gold looked almost the same at $1,575.50 and in the euro, €1,235.67 while the euro was at €1: $1.2750. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today - Silver opened at $28.20 down 50 cents in London’s opening and slipped later to stand ahead of New York’s opening at $28.06.
Gold (very short-term)
Gold should continue to consolidate, today in New York.
Silver (very short-term)
Silver should continue to consolidate, today in New York today.
Price Drivers
Gold – Germany and France are not in agreement over the way forward in the Eurozone. France wants growth and to tap the creditworthiness of Germany through the issue of Eurobonds, where Germany could pick up the tab for the weaker members, who may well not mend their ways thereafter. France feels that the benefits of the Eurozone should be shared by all, after all E.U. does mean a “United Europe”. This clearly means different things to different people. As the foundation of the Eurozone the lack of consensus on this mars the way forward and keeps gold and silver as a good insurance. At this late stage, when Greece is headed for waters that are too deep and Spain following, the dispute will force a crisis that has to split the North of Europe from the South unless something happens soon.
At Rs.55.05 the Rupee continues to weaken. The gold price there is now close to its highs of Rs.86,879 [without premiums]. The rising Rupee price is continuing to see Indian investors stand back. With the recent price levels of the last two months holding at an approximate average of Rs.86,000 Indian investors are seeing a ‘floor’ price build up here. It cannot be too long before they re-enter the gold and silver market with a greater force than we see now.
Silver – Silver continues to follow gold and consolidate at current levels, waiting for the lead from gold. On the industrial side of demand it is clear that the anemic recovery in the U.S. and the continued growth of China is underpinning industrial demand. As a ‘necessary’ commodity now, its performance will outshine other commodities in the present economic climate.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,484.83 | Sf1,497.58 |
US | $1,575.50 | $1,592.15 |
EU | 1,235.67 | €1,246.69 |
India | Rs.87,361.48 | Rs.87,584.17 |
-- Posted Tuesday, 22 May 2012 | Digg This Article
| Source: GoldSeek.com
