-- Posted Thursday, 28 March 2013 | | Disqus
Gold Today – Gold closed in New York at $1,604 yesterday. In Asia and London it traded down slightly to $1,601 ahead of the Fix in London which was at $1,602.5 and in the euro at €1,253.128, while the euro was at €1: $1.2788. Ahead of New York’s opening it traded at $1,600.80 and in the euro at €1,249.75.
Silver Today – Silver closed at $28.60 in New York, yesterday. Ahead of New York’s opening silver stood at $28.62.
Gold (very short-term)
Gold will continue to consolidate around $1,600, in New York today.
Silver (very short-term)
Silver will continue to consolidate, in New York today.
Price Drivers
Gold & Silver – Again Cyprus is the focus of global financial market’s attention as it sinks. Cyprus is in the grip of Capital Controls so stringent that they may suffocate the Cypriot economy. While Cypriots are being told that they will be lifted in a few days, few outsiders believe that. The need for such stringent controls is because Cypriots share a common currency with the rest of the Eurozone. If it were a different currency, then the lack of exchangeability of the currency would control its international movements. Trepidation is now rampant in global financial markets, forcing the euro down to a 4-month low awaiting the ramifications and developments in Cyprus.
The sight of the gold price rising in the euro tells us that the time for gold to stop moving alongside the euro has come. Because of this latest chapter in the Eurozone crisis there is a departure from measuring gold in the euro and contra to the U.S. $. We see gold moving against all currencies from now on. So how does one measure the dollar? If all other currencies are moving relative to their own situation what value do they have in measuring the dollar?
A gold price below $1.600 is bringing in bargain hunters from Asia and we believe central banks. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] We caution readers as we did earlier in the week that the gold price is not moving on Cyprus and E.U. woes, except in the euro as the euro weakens. In the dollar, the currency usually used to buy gold worldwide, the gold price reflects total global demand who would not buy gold on the Cyprus story alone, even short-term. The rise in the gold price in the last week is a reflection of steady global demand and the fall off in supply from the gold Exchange Traded Funds.
Silver – Silver is suddenly sensitive to the downside despite the fact that the holdings of the Silver Trust rose 67 tonnes this week. Silver should recover soon.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,521.96 | Sf1,524.53 |
US | $1,600.80 | $1,599.30 |
EU | 1,249.75 | €1,251.75 |
India | Rs.86,900.23 | Rs.86,953.94 |
-- Posted Thursday, 28 March 2013 | Digg This Article
| Source: GoldSeek.com
