-- Posted Tuesday, 19 June 2012 | | Disqus
Gold Today – Gold closed in New York at $1,627.40. The Fixing in London today was set at $1,628.50. In the euro it was set at €1,291.743. Ahead of New York’s opening gold stood at $1,631.00 and in the euro, €1,293.73 while the euro was at €1: $1.2607.
Silver Today – Silver held steady at $28.74 in New York again, but lifted slightly in London’s morning to $28.83. Ahead of New York’s opening at $28.84, slightly stronger.
Gold (very short-term)
Gold may well be steady to stronger, today in New York.
Silver (very short-term)
Silver may well be to stronger, today in New York.
Price Drivers
Gold – The attention swiftly changed from Greece to Spain in the markets yesterday as yields on Spanish 10-year bonds closed above 7% for the first time. The Spanish economy’s reliance on building for their growth over the last four decades is coming back to haunt them. Where will new growth come from? Not from property for sure. This switch of attention serves to remind us that this is an E.U. crisis which could morph into a global crisis if not resolved through rescue quickly.
With the I.M.F. getting its $450 billion+ boost for just such eventualities the pain to the E.U. may not yet be as great as feared. But the E.U. needs far more than just rescues if the situation is to be resolved properly. Gold and silver will therefore reflect the drama for a considerable time to come still.
Meanwhile, across the other side of the world in a gold country, India, the Rupee continues to hold prices up at record levels now at Rs.91,397.31 per ounce [Rs.28,428.40 for 10 grams]. Such prices allow the Indian gold market to supply itself with gold that is being sold internally, keeping it away from the international gold market. The agricultural community that makes somewhere around 50% of Indian demand is busy with the crop growing season in their monsoon. This will be the case until mid-August. Current demand will still come from the city based gold investing community there, who are not bound by such seasonality. But a stronger Rupee or a realization that these prices are Rupee weakness not gold’s strength, is needed for Indian demand to reappear in world markets. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver – Silver is stronger, following gold in a quietly stronger market. With Spain now the focus of attention the E.U. leaders are being pushed to resolve the E.U. crisis once and for all, but will they? Certainly the fundamentals for silver are very positive.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,553.94 | Sf1,546.61 |
US | $1,631.00 | $1,624.50 |
EU | 1,293.73 | €1,287.85 |
India | Rs.91,442.015 | Rs.90,484.65 |
-- Posted Tuesday, 19 June 2012 | Digg This Article
| Source: GoldSeek.com
