-- Posted Tuesday, 6 November 2012 | | Disqus
Gold Today –New York closed at $1,684.10 down nearly $37.00. This morning, Asia and London dealers lifted it back over $1,690 before it rose to Fix at $1,691.75 and in the euro at €1,321.576 while the euro was much lower at €1: $1.228.04. Ahead of New York’s opening gold stood at $1,693.25 and in the euro at €1,322.44.
Silver Today – Silver closed higher at $31.15 down $1.10 in New York yesterday. It then rose to $31.42 in London, just ahead of New York’s opening.
Gold (very short-term)
Gold will consolidate with a weaker bias, in New York today.
Silver (very short-term)
Silver will consolidate with a weaker bias, in New York today.
Price Drivers
Gold & Silver – Greece has reached the end of its economic tether. The country is in deep recession, capital fled the country some time ago and there are no prospects for an economic revival, while its national debts continue to grow. It needs another bailout just to survive. There is little prospect of Greece being able to repay any new debt in the future. The result for gold and silver has been that the euro tumbled 2% from its high taking them with it down against the U.S. dollar. In the euro the fall was modest.
We expect the euro to remain both volatile and sensitive to day-to-day news from Greece. In the end the Eurozone may well see ant new debt to Greece quickly become toxic and potentially drag down the euro still further. The Eurozone debt crisis is here to stay. What is currently dangerous is that Greece needs to have more bailout funds by 12th November. The potential for a financial accident in making the payout is very high. The markets will easily be spooked by any missteps that may happen.
Only the change of focus from the Presidential elections to the political gridlock in the U.S. can soften the impact of more drama in Europe. The most important change in the debt crises on both sides of the Atlantic is that the situation is moving to an irreversible status. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
Silver – Silver is proving far more volatile than gold. Volatility may worsen both ways!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,596.82 | Sf1,603.74 |
US | $1,693.25 | $1,723.25 |
EU | 1,322.44 | €1,328.69 |
India | Rs.92,150.90 | Rs.92,542.83 |
-- Posted Tuesday, 6 November 2012 | Digg This Article
| Source: GoldSeek.com
