-- Posted Thursday, 31 May 2012 | | Disqus
Gold Today – Gold closed against the flow of the euro, in New York at $1,564.80 and in London’s early morning fell to $1,560. The euro stood at €1: $1.2397 another 75 cents lower than yesterday. It continued to fall in London. Gold Fixed at $1,567.50 up $19 and in the euro at €1,262.077 up €17. Ahead of New York’s opening gold stood at $1,566 and in the euro, €1,261.89 while the euro was at €1: $1.2410. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today - Silver also broke away from the euro rising to $27.97 in New York. It then rose in London to $28.18. Ahead of New York’s opening at $28.10.
Gold (very short-term)
Gold should continue to consolidate but with an upward bias, today in New York.
Silver (very short-term)
Silver should continue to consolidate but with an upward bias, today in New York.
Price Drivers
Gold – The euro sagged yet again in New York into €1: $1.24 10 and it is not stopping. All the problems we mentioned yesterday in Spain are continuing. But today Italy is finding it just as expensive to borrow as Spain. It certainly seems that it is becoming increasingly unlikely that Spain avoids a bailout. It is now being admitted that the ‘bailout fund’ with €700 billion, available later in summer, will prove inadequate to bail it out. The fear that Italy may also need help is not being looked at yet. That’s just too awful to contemplate.
At last the gold price is breaking away from the euro. In the euro it has jumped €50 in the last few days as it is recognized that the euro’s fall does not translate into a strong dollar. It is also reaffirming that gold is a ‘safe haven’ investment.
With growth in India slowing in the first quarter to 5.3 %, much lower than expected and internal inflation rising quickly the falling Indian Rupee appears set to keep declining and now stands at Rs.56.15. It places the Rupee gold price in the same place as the euro gold price until this week. At some point Indian investors are going to realize that the Rupee gold price reflects the weakness of the Rupee and not the strength of the gold price. Once they do, we expect them to accept current Rupee gold prices and protect themselves against the weakening Rupee.
Silver – Silver is jumping with gold. Silver is now also a currency play in the developed world. Should it become so in India [seen as a protection against inflation too], Indian investors will turn back to silver vigorously.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,516.44 | Sf1,494.86 |
US | $1,566.00 | $1,549.00 |
EU | 1,261.89 | €1,244.27 |
India | Rs.87,891.75 | Rs.86,891.16 |
-- Posted Thursday, 31 May 2012 | Digg This Article
| Source: GoldSeek.com
