-- Posted Wednesday, 12 September 2012 | | Disqus

Gold Today –New York closed at $1,732.10 the same as yesterday’s close. Asia and London took it higher to $1,736.17. The euro is still rising at rose in London’s morning to €1: $1.2862. The gold price was Fixed at $1,742.75 up $11.75 on yesterday morning and in the euro at €1,352.227 the same as yesterday as the rise in the euro to $1,2973 carried gold with it.  Ahead of New York’s opening gold stood at $1,743.77 and in the euro at €1,349.67.

Silver Today – Silver held steady through New York closing there at $33.41. London lifted it to $33.62. Ahead of New York’s opening it stood at $33.96.

Gold _{(very short-term)}

Gold will wait for the Fed announcement before moving strongly, today in New York.

Silver _{(very short-term)}

Silver will wait for the Fed announcement before moving strongly, today in New York.

Price Drivers

Gold & Silver –

1.       The German constitutional court ruled that the Eurozone Stability Mechanism is constitutional and can be supported by Germany up to 190 €billion of the €500 billion. This validates Mario Draghi’s bond buying program.

2.      China’s leaders confirmed they will add growth stimuli to lift the Chinese economy should the need arise.

3.      Now the third element of note today will be the news from the U.S. Federal reserve, which will impact all markets across the globe. If they confirm more QE is the course they take the three elements to stimulate growth will be positive for the global economy.

Will it be positive for gold too? We believe it will because the first and the last elements point to a further undermining of currency values. Gold will not be devalued with currencies but will retain its value and rise.

Undermining the value of currencies is now more than simply that. We have to add to that the growing loss of confidence in them. It is the increase of fear that accelerates and accentuates declines in currency values that are not apparent in exchange rates. That’s why gold’s value as a monetary asset in today’s banking goes far beyond its market price! 

Silver – Silver remains fused at the hip to gold, in its moves. We have to note that it is day-to-day trading that sets the silver price. Traders dictate those, but bend to the fundamentals behind silver’s supply and demand picture.

Regards,

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

-- Posted Wednesday, 12 September 2012 | Digg This Article | Source: GoldSeek.com

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