-- Posted Thursday, 20 December 2012 | | Disqus
Gold Today –New York closed at $1,669.3 down nearly $30 in two days. This morning there was no rush to support the price or turn it around. It slipped slightly as the euro continued to strengthen to $1,667.00 where it Fixed this morning, In the euro it was Fixed at €1,259.254 down €30 on two days ago, while the euro was slightly stronger at €1: $1.3238. Ahead of New York’s opening, gold was $1,670.40 and in the euro at €1,259.97.
Silver Today – Silver closed lower at $31.1 the lowest it has been for some time in New York yesterday. It opened in London a similar level and traded there at $31.13. Ahead of New York’s opening silver stood at $31.23.
Gold (very short-term)
Gold is expected to look for support at these or lower levels, in New York today.
Silver (very short-term)
Silver is expected to look for support at these or lower levels, in New York today.
Price Drivers
Gold & Silver – While equity markets are determined to take a positive view of the ‘Fiscal Cliff’ talks the realities are that politicians are taking this game of ‘chicken’ right to the brink of the precipice. Republicans are aware that if they accept Tax hikes they will lose voter support while Obama in his second and last term has little to lose by sticking to his position. So while most observers realize the need for politicians to go to the brink for the sake of votes, they all believe some compromise will be the result. It reminds us of a long-bowman pulling the string of his bow to breaking point before releasing the arrow. Markets believe that the ‘relief rally’ will impact gold and silver negatively and are discounting it. But if politicians fall over the ‘cliff’ gold and silver might turn out to be the arrow? What is a fact of recent history is that gold and silver are approaching huge support in the lower $1,600 area. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
What has become very clear is that Asian demand is not so price sensitive as to rush in on lower prices, as we are seeing now. Asian demand relates itself to Asian situations. Lower Rupee prices do precipitate some buying but must first soak up Indian supplies. Chinese demand relates to disposable income availability. These must work through over time and don’t rush in and out as speculators are able to do.
Central Bank demand looks for volume not prices. While we believe that all these aspects of demand are active they are not instantly price sensitive. This allows for the price action we are seeing now. The volatility present in the market is momentum driven and follows the Technical picture.
As the festive season is almost on us, jewelry demand has slowed as manufacturing for this season has finished.
Silver – Silver is sitting on strong support now.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,521.90 | Sf1,552.61 |
US | $1,670.40 | $1,691.30 |
EU | 1,259.97 | €1,285.43 |
India | Rs.91,624.78 | Rs.92,750.89 |
-- Posted Thursday, 20 December 2012 | Digg This Article
| Source: GoldSeek.com
