-- Posted Tuesday, 24 July 2012 | | Disqus

Gold Today – Gold closed in New York at $1,572 yesterday. London opened at the same level as the euro fell below €1: $1.21 on growing fear. London’s morning Fix today was set at $1,573.00 and in the euro at €1,300.537, while the euro stood at €1: $1.2095. Ahead of New York’s opening gold stood at $1,575.25 in the middle and in the euro at €1,301.54.

Silver Today – Silver ahead of New York’s opening stood at $27.00.

Gold _{(very short-term)}

Gold should have a mixed bias today, in New York.

Silver _{(very short-term)}

Silver should have a mixed bias today, in New York.

Price Drivers

Gold & Silver – With the day starting of warnings of a write down of Germany the Eurozone once again lurched to a new crisis level. Yesterday, Spanish and Italian market regulators both imposed a ban on the short selling of stocks in the wake of steep losses for equities markets in Europe. Spain's market regulator, CNMV, said that its ban would last for three months, or until the close of markets on Oct. 23 and that the ban could be renewed or lifted as required. Italy's financial regulator, Consob said that its ban, which is for financial stocks only, would last until the end of this week. We have moved from a position of, “The Eurozone will fix things.” To, “Can they stop the euro from falling to par?”

What will this mean for gold? Well, gold is not going to fall apart with the euro, so it is a matter of time before gold shows its virtues against the euro by rising against it. It is at €1,300 so hasn’t fallen of late against the euro, but has followed the euro against the dollar. There is a certain resilience in the gold and silver prices that remains solid. The week gets interesting. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]

Silver – Silver’s is fighting back above $27 as support kicks in. Earlier silver fixed in London at $26.93. Silver’s industrial demand side is global, so a downturn in Europe and the U.S., while negative, is compensated to a large extent by Asia’s ongoing growth. When European and U.S. growth combined is not too far away from zero, China’s growth, even at 7.4%, for a huge nation is significant and adds strength to the silver price. Now factor in that ‘Official’ sales from Russia have dropped like a stone, we see the fundamentals for silver remain robust.

But as we said yesterday, the euro’s moves against the dollar will dominate precious metals today [as usual] we expect.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

-- Posted Tuesday, 24 July 2012 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus
Previous Articles

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer