-- Posted Wednesday, 20 February 2013 | | Disqus
Gold Today – In New York yesterday gold closed at $1,604.90 as the consolidation phase seeks a clear direction at these levels. In Asia overnight the gold price was holding just below yesterday’s levels at $1,606.40. In London it was Fixed at $1,602.00 and in the euro at €1,195.344, while the euro was $1.3402. Ahead of New York’s opening, gold was $1,593.40 and in the euro at €1,189.55.
Silver Today – Silver closed at $29.41 in New York. Ahead of New York’s opening silver stood at $29.25 down over 75 cents or 2.5%.
Gold (very short-term)
We expect gold to look for a ‘floor’, in New York today.
Silver (very short-term)
We expect silver to look for a ‘floor’, in New York today.
Price Drivers
Gold & Silver – As we expected yesterday, gold prices benefitted from the returning Chinese demand which saw record volumes for the benchmark cash contract on the Shanghai Gold Exchange, which reached a record on Monday after the Lunar New Year holiday there. The volume for bullion of 99.99% purity exceeded 22,000 kilograms (22 tonnes). The Technical picture tells us that we are very close to a bottom and as the gold price enters the $1,500 area. The gold price is now looking for a ‘floor’ any time now.
The danger to investors as always remains their emotions, which look at smaller and smaller details to try to find something to tell them where the prices are headed. We are hearing that the Hedge Funds have been dumping their holdings in the U.S., but then such rumours often spark selling as fear spreads. Questions are being asked, “Has gold had its day?” Some say [despite their clear statements to the contrary by the Fed] that interest rates are soon to rise and so on.
We sense an element of fear in the market place which has spread to the gold and silver markets to. However, that fear is limited mainly to New York and is spreading to London. Does it have a real foundation? The fundamentals tell us that it doesn’t and that the forces pressing it down are short-term speculators and traders hoping to trigger stop losses. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
Silver –Silver lurched lower too and will drop lower than gold in its usual volatile way, but should it find its ‘floor’, it will bounce back up higher than gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,468.40 | Sf1,487.37 |
US | $1,593.40 | $1,611.80 |
EU | 1,189.55 | €1,206.52 |
India | Rs.86,179.84 | Rs.87,465.13 |
-- Posted Wednesday, 20 February 2013 | Digg This Article
| Source: GoldSeek.com
