-- Posted Tuesday, 4 September 2012 | | Disqus
Gold Today –London gold closed at $1,695 and opened at the same price, with New York enjoying Labor Day. The euro recovered to over €1: $1.26. With the return of New York today the market will be steaming along at full pace. The morning Fix in London was set at $1,691.50 and in the euro at €1,342.247 while the euro stood at $1.2602. Ahead of New York’s opening gold stood at $1,692.77 and in the euro at €1,344.05.
Silver Today – Silver is not slowing down as it raced over $32. Ahead of New York’s opening it stood at $32.07 in London.
Gold (very short-term)
Gold should again be stronger, today in New York but cautious ahead of $1,700.
Silver (very short-term)
Silver should again be stronger, today in New York.
Price Drivers
Gold & Silver –It is always good to see the market only operating in certain parts of the world. With the U.S. closed over the weekend and yesterday we could see the physical market operating with only minimal trading activity. With London the home of the physical market this is where we see central bank activity and operators buying gold for the Far East. What did they do, they were buyers holding the gold price up at Friday’s level and taking it higher this morning. This reflected the stronger underlying aspects of demand and the mood it’s in. Today, we will see if traders and speculators cover short positions and increase their long positions to get in on the rise.
We suspect that they are not in a good place to increase their short positions and try to pull the gold price back. But the $1,700 level is a psychological barrier and all will tread with caution at that price, except for central bankers. They don’t chase the price up, but they don’t react to any specific level. They act when they deem there is sufficient volume on offer to them, not matter what the price. With New York out of the picture, they may well have had the field to themselves!
Rupee gold prices keep on making new highs. If the Indian investors feel there is more of a rise to come, they will stop selling and turn buyers at what they feel are prices that will hold. The monsoons are now good, so farmer’s profits are on the rise. This should translate into buying of gold or silver. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
Silver - Silver supply is down in the market place underpinning the rising prices we are now seeing.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,614.24 | Sf1,612.29 |
US | $1,692.70 | $1,688.00 |
EU | 1,344.05 | €1,342.67 |
India | Rs.94,207.22 | Rs.93,831.70 |
-- Posted Tuesday, 4 September 2012 | Digg This Article
| Source: GoldSeek.com
