-- Posted Wednesday, 18 July 2012 | | Disqus
Gold Today – Gold closed in New York at $1,581.70 yesterday down $7.80. Asia took it to $1,582 ahead of London’s opening. London’s morning Fix today was set at $1,579.50 down $6 on yesterday and in the euro at €1,298.651, while the euro stood at €1: $1.2257 down half a cent on the dollar. Ahead of New York’s opening gold stood at $1,579.32 in the middle and in the euro at €1,290.66.
Silver Today – Silver closed on Friday in New York at $27.25 and opened in London at $27.27. Ahead of New York’s opening at $27. 31.
Gold (very short-term)
Gold should have a mixed performance today, in New York.
Silver (very short-term)
Silver should have a mixed performance today, in New York.
Price Drivers
Gold & Silver – This morning the Prime Minister of Italy announced that Italy was in danger of defaulting. Such news has not hurt the euro, yet. In fact, the dollar is slightly weaker this morning after the Fed testimony before Congress yesterday. This superficial reaction hides the serious nature of both events. If Italy defaults then the Eurozone crisis becomes a Europe wide one that the current ‘solutions’ will prove completely insufficient to resolve. Then the danger of Europe unraveling will be real. The euro’s value on foreign exchanges will tumble.
Likewise, if the warnings that Mr. Bernanke gave to Congress are not heeded, amid the disproportionate importance politics demands, the U.S. will head into recession and political turmoil that will warrant a serious drop in the value of the U.S. dollar.
The converging timetable for these events is year’s end.
The consolidation process since gold hit $1,920 has been longer than it was when gold fell from $1.200 to $1,000 when the credit crunch first hit. The reasons for the correction are similar to then. Back then there was a real hope that growth could be regained and financial health achievable. Today, five years later, that hope appears to have evaporated. Today, the hope is being limited to the ongoing hope that the monetary system can be held together.
Now it is felt that any stimuli that central banks apply to increase employment have a real chance of undermining the value of currencies even more. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.] So uncertainty and instability are moving to a heightened level for the entire globe.
Silver – Silver’s seems to be marking time now, just waiting for a huge influence one way or the other.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,549.71 | Sf1,558.15 |
US | $1,579.32 | $1,594.75 |
EU | 1,290.66 | €1,297.39 |
India | Rs.87,573.29 | Rs.87,826.87 |
-- Posted Wednesday, 18 July 2012 | Digg This Article
| Source: GoldSeek.com
