-- Posted Wednesday, 20 March 2013 | | Disqus
Gold Today – The gold closed in New York on Friday at $1,612.60. In Asia and London it held there through London’s morning until it Fixed at $1,611.50 and in the euro at €1,247.098, while the euro was $1.29.22. Ahead of New York’s opening, gold was $1,609.30 and in the euro at €1,246.94.
Silver Today – Silver closed at $28.88 in New York yesterday. Ahead of New York’s opening silver stood at $28.78.
Gold (very short-term)
Gold is expected to show a firmer bias in New York today.
Silver (very short-term)
Silver is expected to show a firmer bias in New York today.
Price Drivers
Gold & Silver – Meyer of MGM gave a strong speech at a public gathering finishing with the words, “I’ve got my principles!” His words were met with silence. Being a man of alacrity he continued, “And if you don’t like those, I’ve got others!” This is where the E.U. now stands after their proposals were rejected by the Cypriot Parliament. The question is now, ‘Where to from here?”
Germany has been quick to try to reassure the world that steps had already been taken to contain the crisis in Europe. That appears to be the case on the surface. But the damage has been done. This damage is that deposits are not safe from confiscation or safe in insolvency. E.U. banking integrity has been dealt a heavy body blow. We see this as having a very positive impact on the demand for gold and silver in the days ahead. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
This may not have an immediate effect on the monetary system, but has changed attitudes regarding managing deposits and spreading investments. Most of all it has put in place a description of just how far governments will go to protect their banking systems, even at the expense of their citizens. That has shocked many investors.
Over in Spain the banking system feels able to unplug their support for their building industry that accounted for 18% of their GDP, making Spain’s debt position even worse as that economy continues to shrink. The Eurozone crisis is far from over!
For sure, gold and silver investors are fully aware of what is possible to their investments, so may well take more steps to guard against these dangers, now that the real pecking order in money matters has been thrust upon us.
As you can see below the gold price in the euro has risen far faster than it has in the U.S. dollar as the euro declined against the dollar.
Silver – Silver is still marking time as gold quietly climbs. We therefore expect a ‘shunt’ effect to happen soon, propelling silver upwards, provided gold keeps on climbing. Clearly, crisis in Cyprus has had no impact on silver.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,522.80 | Sf1,513.18 |
US | $1,609.30 | $1,602.95 |
EU | 1,246.94 | €1,237.85 |
India | Rs.87,466.26 | Rs.87,128.35 |
-- Posted Wednesday, 20 March 2013 | Digg This Article
| Source: GoldSeek.com
