-- Posted Monday, 28 May 2012 | | Disqus
Gold Today – New York closed higher at $1,572.80 and in London’s early morning rose to $1,580. The euro was slightly stronger in London at €1: $1.2585. It Fixed at $1,579.00 and in the euro at €1,255.666. Ahead of New York’s opening gold stood at $1,582.70 and in the euro, €1,256.65 while the euro was at €1: $1.2595. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today - Silver closed on Friday at $28.47. Ahead of New York’s opening at $28.72.
Gold (very short-term)
Gold should show a weaker bias, today in New York or surprise with a strong move, either way.
Silver (very short-term)
Silver should show a weaker bias, today in New York or surprise with a strong move, either way.
Price Drivers
While our readers in the U.S. are enjoying Memorial Day, investors are getting a chance to see non-U.S. market facets of the gold and silver prices. That’s why we expect a continuation of the consolidation in both prices. This may be a prelude to a vigorous day tomorrow.
Gold – With the euro holding at low levels, surprisingly, in the face of the Spanish bank Bankia calling for a €23 billion bailout [a government owned leading bank facing bankruptcy?] the European case for gold has been strengthened. A further strengthening factor came from the Swiss National Bank, which is considering Capital Controls to control inflows of fleeing money. The Swiss National Bank does not want the Swiss Franc to strengthen to more than Sf1.2 to the euro, thus preventing it from being a ‘safe haven’ currency.
Do not be surprised to see Spain impose Capital Controls for the opposite reason that of preventing capital outflows, as Spanish bond yields move above 6% to 6.9%. Under the Maasticht Treaty that founded the E.U. such controls are permitted for short periods. If these are not imposed the coast of recapitalizing the banks there will be horrendous.
The Indian Rupee has recovered again to Rs.55.1975 from Rs.55.36. This is lowering gold and silver prices in India.
Silver – Silver is a touch stronger at the start of the week. It will continue to consolidate with gold today, but as the monetary situation worsens in the Eurozone its monetary link may provide it with further strength.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,512.95 | Sf1,490.36 |
US | $1,582.70 | $1,560.50 |
EU | 1,256.65 | €1,240.26 |
India | Rs.87,363.84 | Rs.86,482.91 |
-- Posted Monday, 28 May 2012 | Digg This Article
| Source: GoldSeek.com
