-- Posted Friday, 12 April 2013 | | Disqus
Gold Today – Gold closed in New York at $1,561.00 yesterday. The gold price was Fixed in London at $1,548.00 and in the euro at €1,186.293, while the euro was at €1: $1.3049. Ahead of New York’s opening it traded at $1,548.80 and in the euro at €1,186.05.
Silver Today – Silver closed at $27.62 up 2 cents in New York yesterday. Ahead of New York’s opening silver stood at $27.60 barely changed.
Gold (very short-term)
Gold will test support, which should hold, in New York today.
Silver (very short-term)
Silver will mark time while watching gold, in New York today.
Price Drivers
Gold & Silver – Another 2.11 tonnes of gold was sold from the SPDR gold ETF yesterday after yesterday’s 17 tonne sale. This makes the total 25 tonnes so far this week. Until this stops, the gold price is vulnerable. Once it does stop we expect the gold price to recover and probably quickly.
The report that Cyprus sold 10 tonnes of its gold was incorrect. It is simply one of the options open to the government, but is for the Cypriot central bank to decide.
In the past, central banks, throughout Europe, including Germany, have made it clear to government that the assets held on behalf of the nation by the central bank, were not available for cutting national deficits or similar problems. We note that there were no reports that Greece sold any of its 111 tonnes of gold when they were in a similar situation, so we would be surprised if Cyprus’ gold were sold to resolve its banks bankruptcy situation, despite the discovery that its indebtedness has virtually doubled. Central bank held gold is for use when the nation cannot import the basics. With this in mind it would be as exceptional for the E.U. to ask for the sale of Cypriot gold as it would set a precedent as horrifying as seizing depositors funds. Perhaps we will see senior bond holders, et al and depositors [unsecured creditors] cough up the rest of their assets to cover the now bloated debt of the banks.
Also, it is unlikely that the E.U. would ask for the gold to be sold because that would plunder the nation, family jewels an’ all. Central bank held gold is, after all, the last bit of a nation’s money on which to feed on. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] It is a nation’s last financial resort. The road out of the E.U. would be a wiser path to follow.
Silver – Silver is still not following gold on the usual daily basis. While it appears to see gold’s fall as temporary, it may also be saying that silver’s fundamentals don’t warrant its price falling?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,442.71 | Sf1,447.59 |
US | $1,548.80 | $1,559.15 |
EU | 1,186.05 | €1,187.15 |
India | Rs.84,541.25 | Rs.85,020.45 |
-- Posted Friday, 12 April 2013 | Digg This Article
| Source: GoldSeek.com
