-- Posted Thursday, 7 June 2012 | | Disqus
Gold Today – Gold closed in New York at $1,619.60 and in London’s early morning rose to $1,623. The Fixing in London today was set at $1,620.75 down $13 and in the euro at €1,288.66 down €17. Ahead of New York’s opening gold stood at $1,615.40 and in the euro, €1,284.71 while the euro was at €1: $1.2574. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today – Silver rose nearly a dollar to $29.40 then slipped a tiny amount of 13 cents in London’s morning. Ahead of New York’s opening at $29.23.
Gold (very short-term)
Gold may well show slightly negative bias, today in New York.
Silver (very short-term)
Silver may well continue to show a steady performance, today in New York.
Price Drivers
Gold – With the gold price still mainly under the influence of traders and speculators we look at what is influencing them. They are focused on two situations. The first is the growing prospect of more quantitative easing in both the States and Europe and the second is the change of mood in the Eurozone.
With poor economic numbers coming out of most countries except Australia, there will be a need, yet again, to ward off deflation. The only answer among central bankers and governments, struggling to manage the economic situations, is more newly printed money. With little to now be gained through lowering interest rates from their currently low levels, stimulating the supply of money and the hoped for increase in money velocity, whatever inclination there is towards growth will be nurtured and not dragged down into a recession. This has caused the dollar to slip against many currencies. This will, as it was before, be gold positive.
The change of mood in the Eurozone appears to be along the lines that Spain cannot be allowed to leave the Eurozone and that the euro will not collapse. The mood swings away from the fear that the euro and Eurozone will collapse. This hope alone has caused the euro to approach €1: $1.26 level and for gold to slip back to support. It’s another thing for that hope to be realized. The Spanish bond auction although expensive at 6.05% was successful.
The Rupee at Rs.55.05 is a little stronger against the dollar causing gold prices in India to slip too.
Silver – Silver is holding onto most of its gains ahead of the opening of New York. This confirms that it is now performing better than gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,542.63 | Sf1,569.56 |
US | $1,615.40 | $1,633.00 |
EU | 1,284.71 | €1,307.03 |
India | Rs.88,960.08 | Rs.90,566.88 |
-- Posted Thursday, 7 June 2012 | Digg This Article
| Source: GoldSeek.com
