-- Posted Monday, 29 October 2012 | | Disqus
Gold Today –New York closed at $1,712.00 down 70 cents. This morning, Asia and London dealers are pull it back through $1,714 area. From there it hovered around $1,712 in line with the euro’s moves and then Fixed at $1,712.00 up $8 on Friday and in the euro at €1,326.720 up €10 while the euro was at €1: $1.29.04 weaker than Friday’s over €1: $1.30+. Ahead of New York’s opening gold stood at $1,712.31 and in the euro at €1,326.75.
Silver Today – Silver closed higher at $32.06 down 6 cents in New York on Friday. It then dropped to $31.93 in London as it battled to stay above $32, ahead of New York’s opening.
Gold (very short-term)
Gold will consolidate with a neutral bias, in New York today.
Silver (very short-term)
Silver will consolidate with a neutral bias, in New York today.
Price Drivers
Gold & Silver – It is becoming clearer that with Spain’s success at raising 95% of its loan requirements that its need for a bailout is not as pressing as markets were led to believe. If it does turn to the E.U. for a bailout it may only do so in December. This is in the face of a worsening economy in Spain.
But that is not bad news for gold. The level of uncertainty that is now very high worldwide is set to persist because of it, through year end at the very least. Uncertainty is not simply a Spanish debt factor, nor an E.U. one, but the sight of politics clashing with finance is a developed world phenomenon and one that is deeply structural. As long as it persists it is positive for gold and silver. The developed world is allowing the situation to persist and face the danger of rupture by doing so, as central banks carry the burden of softening the risks through further monetary stimulation. The result is an economic and monetary backdrop that ensures a positive environment for precious metals.
With gold continuing to bounce off $1,700 and the dollar showing slight strength today the question facing investors is if it continues to fall, where will the fall stop and a turn happen? Or has it already bottomed and is about to turn? [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
Silver – Silver has become slightly weaker than gold struggling to hold above $32.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,604.52 | Sf1,595.34 |
US | $1,712.31 | $1,704.33 |
EU | 1,326.75 | €1,319.91 |
India | Rs.92,490.42 | Rs.91,275.39 |
-- Posted Monday, 29 October 2012 | Digg This Article
| Source: GoldSeek.com
