Gold Today – Gold closed in New York at $1,604.40 down $18.4. A quiet London pulled it back to $1,599.40 ahead of the a.m. Fixing. The morning Fix today was set at $1,591.75 and in the euro at €1,285.535, while the euro stood at €1: $1.2382 down over one cent. The euro stood at €1: $1.2378 after the Fix. Ahead of New York’s opening gold stood at $1,593.00 in the middle and in the euro at €1,286.96.
Silver Today – Silver was lower in London at $27.46 down 80 cents. Ahead of New York’s opening at $27.45.
Gold(very short-term)
Gold should have a weaker bias today, in New York.
Silver(very short-term)
Silver should have a weaker bias today, in New York.
Price Drivers
Gold & Silver – As we said yesterday, how New York treated the gold and silver prices in this thin market, would give their direction for the rest of the week.After falling $22 in New York yesterday, London pushed the price down further to $1592 ahead of the Fixing. These moves were on the back of a weakening euro and a slightly strengthening dollar. These moves confirm that the consolidation phase is still underway. What is becoming very clear now is that when this consolidation phase is complete, we will see a much stronger move that we have seen for almost a year, take place, one way or the other. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.comand at www.SilverForecaster.com.]
The Indian Rupee is holding the gains it made since the Reserve Bank of India encouraged more investment into Indian sovereign bonds. This is key to the lowering of the Rupee gold price. Before Indian demand is resuscitated, the Indian market wants to see lower Rupee prices. Prices below Rs.87,000 per ounce would do it. The R.B.I. needs to do much more than it has to achieve this. While gold imports to India may savage their Balance of Payments, should the financial weather turn really bad for India, the 20,000 tonnes of gold inside the country would prevent any storm damage. Of course the RBI would need to get its hands on that gold first through confiscation, most likely?
Silver – The silver price is following gold even on the downside. Its price remains in trader’s hands and will do so even when more vigor comes to the gold market.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,545.69
Sf1,554.25
US
$1,593.00
$1,618.00
EU
1,294.19
€1,294.19
India
Rs.88,542.92
Rs.89,073.33
-- Posted Friday, 6 July 2012 | Digg This Article | Source: GoldSeek.com
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