-- Posted Thursday, 31 January 2013 | | Disqus
Gold Today – In New York the gold price recovered to $1,676.50, yesterday, up $14. In Asia it slipped a little to $1,677 and traded below that level in London’s morning where it Fixed at $1,674.5 up over $8 and in the euro at €1,234.882 up €4. The euro held the same level as yesterday at €1: $1.3556, despite the negative growth figures published yesterday in the U.S. Ahead of New York’s opening, gold was $1,674.65 and in the euro at €1,235.31.
Silver Today – Silver closed at $31.98 up 62 cents in New York. Ahead of New York’s opening silver stood at $31.96.
Gold (very short-term)
We expect gold to tighten its consolidation range, in New York today.
Silver (very short-term)
We expect silver to tighten its consolidation range, in New York today.
Price Drivers
Gold & Silver – What a shock! The U.S. economy contracted because of defense spending o.1%. Apart from such falls in major U.S. production sectors of the economy, the U.S. is expected to grow by around 1% we are told. The euro continued to stay strong, but the jump in the gold price was trader and speculator driven, which we see as part of the current consolidation phase for gold and silver. In the next few days we expect to see the gold and silver prices tighten their trading ranges as they prepare for a strong move either way. It seems that these price preparations are like a cat coiling up to pounce. Such moves are increasing in frequency in this area below $1,700. The question is, “Will they continue to try to break through $1,700?” The trading range between $1,650 and $1,690 is now a well worn path going back over a year. It seems that we are reaching a point where a major move is soon to take place.
Across in India as the wedding season comes into view [and there are millions of them] gold buying is high right through until May, when the ‘season’ ends ahead of the monsoon’s beginning. In addition the Rupee has strengthened to the extent that, as you can see below yesterday’s price fell to below Rs.89,000 an ounce, a price level not seen for around a year.
The flat growth in the U.S. [take inflation of just over 1% from 1% growth and there is nothing left] is disheartening for the Fed who on their own, have tried to spur growth, almost without the help of government. Add to that that the fiscal crises remain unresolved there, still. It is the damage done to the value of the dollar that affects gold, not the state of the economy! [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
Silver – Silver is climbing again with gold and at the same pace, both of which is seeing strong underlying demand for the long-term and rising investment demand. After five years of trying, developed world growth is still struggling to gain traction. Flat growth and money printing are good for gold & silver!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,525.69 | Sf1,537.01 |
US | $1,674.65 | $1,662.80 |
EU | 1,235.31 | €1,238.08 |
India | Rs.89,066.26 | Rs.89,417.07 |
-- Posted Thursday, 31 January 2013 | Digg This Article
| Source: GoldSeek.com
