-- Posted Tuesday, 14 August 2012 | | Disqus
Gold Today –New York gold closed at $1,608.3 down $12. London took gold up to $1,614 and it Fixed at $1,614.50 as the euro stood at €1: $1.2366. In the euro it was Fixed at €1,305.596 down €6 on yesterday afternoon. Ahead of New York’s opening gold slipped slightly at $1,613.00 in the middle and in the euro at €1,305.33.
Silver Today – Silver in New York closed at $27.75 and rose in London to $27.92 ahead of New York’s opening.
Gold (very short-term)
Gold should have a stronger bias, today in New York.
Silver (very short-term)
Silver should have a stronger bias, today in New York.
Price Drivers
Gold & Silver –
We apologize for the absence of this daily report for the last week, due to issues beyond our control. In that week, not a great deal happened in the gold and silver market, but a great deal happened that could well influence gold and silver prices in the days to come. These embraced the fundamental issue of confidence, without which the developed world economies will stall.
In the U.S. companies are already beginning to react to the coming ‘fiscal cliff’. The confrontation that politicians in the U.S. have already promised over the issues involved have prompted all non-government-dependent businesses to cut back on plans to spend more and to hire workers. This, wait-and-see attitude on their behalf could, of itself, precipitate a U.S. recession. The combination of falling confidence and growth cutbacks can develop into an economically destructive force that will require far more than just a gentle stimulation that may be being contemplated by the Fed. Unless this falling confidence and business pullback is addressed very quickly, deflationary forces of a growing magnitude will take hold. Our previous articles on deflation addressed fully what will happen to the gold and silver prices in this event.
The numbers out of the Eurozone point to a growing recession. Greece continues to shrink and the developed world shows no reason to expect vigorous growth in the foreseeable future. Investors have to ask themselves is this a climate in which precious metals will rise? We think so, but why? [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
The repeated scandals in the banking system found another series of incidents in the allegations made against Standard and Chartered bank last week, when another massive money laundering scheme was uncovered, it seems. The loss of confidence that is spawned by such incidents is a systemic loss of confidence.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,567.67 | Sf1,585.34 |
US | $1,613.00 | $1,608.56 |
EU | 1,305.33 | €1,319.58 |
India | Rs.89,852.17 | Rs.89,977.97 |
-- Posted Tuesday, 14 August 2012 | Digg This Article
| Source: GoldSeek.com
