-- Posted Tuesday, 9 October 2012 | | Disqus
Gold Today –New York closed at $1,774.70. This morning, Asia and London dealers moved it in line with the euro’s moves to $1,773 with the euro at €1: $1.2931. Gold was then Fixed at $1,770.75 and in the euro at €1,369.913, while the euro stood at $1.29267. Ahead of New York’s opening gold stood at $1,772.77 and in the euro at €1,371.16.
Silver Today – Silver closed at $34.01 down 50 cents in New York. London pulled it back slightly to $33.93. Ahead of New York’s opening it stood at $33.91.
Gold (very short-term)
Gold should again consolidate with a weaker bias, today in New York.
Silver (very short-term)
Silver should again consolidate with a weaker bias, today in New York.
Price Drivers
Gold & Silver – More global uncertainty is now hampering the future of the global economy as the I.M.F. now reports. The developed world is growing at less than the inflation rate while China is growing at 5.2%, according to them. The stark warning from the I.M.F. is that their present growth forecasts are predicated on a resolution of the “Fiscal Cliff” in the U.S. and of the “Sovereign Debt crisis” inside the Eurozone. Extrapolate the performance of the developed world governments and the I.M.F. viewpoint paints a worrying picture of the future, but one that will favor precious metals still.
The picture we now see masks another positive for gold. QE works provided it produces growth commensurate with the increase in money supply. If it doesn’t then such an increase devalues the money itself and threatens triggering a persistent hunger for more new money to retain purchasing power. There is not visible sign of this yet, but it is coming if a growth response is not seen! [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
The technical picture still holds sway over the very short-term moves in the precious metals at the moment. But that can change in a heartbeat, as we have explained in earlier daily reports.
Silver – Silver continues to consolidate alongside gold as a monetary metal.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,660.55 | Sf1,653.26 |
US | $1,772.77 | $1,768.85 |
EU | 1,371.16 | €1,365.89 |
India | Rs.93,487.03 | Rs.93,121.11 |
-- Posted Tuesday, 9 October 2012 | Digg This Article
| Source: GoldSeek.com
