-- Posted Thursday, 28 February 2013 | | Disqus

Gold Today – The gold price slipped back to $1,597.10 in New York, yesterday. In Asia and ahead of London’s opening it held there but as London opened gold slipped back to Fix at $1,591.00 and in the euro at €1,213.392, while the euro was $1.3112. Ahead of New York’s opening, gold was $1,591.30 and in the euro at €1,212.69.

Silver Today – Silver dropped back to $28.97 in New York yesterday. Ahead of New York’s opening silver stood at $28.98.

Gold _{(very short-term)}

We expect gold to continue to consolidate, in New York today.

Silver _{(very short-term)}

We expect silver to follow gold in consolidation, in New York today.

Price Drivers

Gold & Silver – Once more the U.S. is playing brinkmanship with the economy. The threat to the economy, if spending cuts kick in automatically, is serious, but politicians are placing the interests of the party above those of their country and then blame others for the mess. Such is life. The spending cuts of over $85 billion start tomorrow.  On March 27^th more spending cuts kick in. With Mr Bernanke warning Congress of this and confirming once again the QE will continue we expect the dollar to continue to be the victim.

However, the damage on the foreign exchange to the dollar is being matched by the damage being done to the euro, leaving the €: $ exchange rate moving only slightly.

In India the Budget speech had not increased duties on gold so we expect Indian gold demand to pick up again from now on. In China the Shanghai Gold Exchange daily volumes for the cash contract have been more than double the average in 2012 since February 18, when it reached a record 22,024 kilograms.

Sales from the gold Exchange Traded funds continue with more than 35 tonnes being sold this week. This takes the total sold in the last month to just under, 100 tonnes or just under 8%. We believe that the bulk of this is being bought by central banks.

The leaders of the E.U. are seeing the Italian elections as “a catastrophe for the euro and the European Union”. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]

Silver –The silver price is once more tied to gold tightly. Traders continue to try to take it down but silver is not being sold off the way gold is. These days of consolidation are deciding the direction of both gold and silver for the next few months.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

-- Posted Thursday, 28 February 2013 | Digg This Article | Source: GoldSeek.com

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