-- Posted Wednesday, 27 June 2012 | | Disqus
Gold Today – Gold closed in New York at $1,573. London opened at $1,570, while the euro strengthened slightly to €1: $1.2495, barely changed. The gold Fix was set at $1,567.50 $9 lower and in the euro €1,255.306, €12 lower. Ahead of New York’s opening gold stood at $1,568.80 and in the euro, €1,255.14 while the euro was at €1: $1.2499.
Silver Today – Silver sat at higher levels over $27.02. Ahead of New York’s opening at $26.90.
Gold (very short-term)
Gold will continue an important phase of its consolidation, today in New York.
Silver (very short-term)
Silver will continue an important phase of its consolidation, today in New York.
Price Drivers
Gold & Silver – As E.U. leaders meet for the 19th time in emergency talks, markets are taking a jaundiced view of their indecisive performance. To be fair to them, the giving up any part of financial sovereignty is a very risky step for any politician. In the past these have been causes for war. But it does seem that we are seeing a stream of proposals, one after the other where no progress is being made. What is truly remarkable is the relative stability of the euro against the dollar. The small moves we have seen are not consistent with the level of crises. This gives adequate testimony to the effectiveness of currency swaps to calm markets. We must remember that these in themselves are short-term measures, not designed as a cure for exchange rate swings. They simply ensure that when the paw-paw does hit the fan, the fan is going full pelt. The effect on gold and silver is the same as we watch the long period of consolidation at current levels drag on and on. Investors have hopefully decided what will trigger a move one way or the other.
We foresee the trigger being pulled in much the same manner as it was in mid-2007 when the ‘credit crunch’ first hit. As we all know there are several situations that could qualify as a ‘trigger’. What we do expect is that when the trigger is pulled, it will come as a shock to all markets. Perhaps even the E.C.B. President Draghi lowering interest rates to zero on July 5th will do it? That will be very gold positive after the initial drop as funds flee to the dollar. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]. In the meantime gold and silver continue to base build around the mid-to higher $1,550 level.
Silver – Silver has an underlying strength to it that is more robust than gold. But this will not prevent it from moving close to the gold price. The days in the immediate future are uncertain as consolidation continues. Once resolved and direction given, we may see the two metals move into an area of volatility not see since last year.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,507.70 | Sf1,515.50 |
US | $1,568.80 | $1,585.25 |
EU | 1,255.14 | €1,266.93 |
India | Rs.89,656.92 | Rs.90,240.36 |
-- Posted Wednesday, 27 June 2012 | Digg This Article
| Source: GoldSeek.com
