-- Posted Wednesday, 16 October 2013 | | Disqus
Gold Today –New York closed at $1,281.30 up $8.60 on Tuesday. Asia took it up to $1,285.30 ahead of London’s opening. At the Fix, gold was set at $1,278.25 up $22.75. In the euro it Fixed at €944.752 up €15.25. Ahead of New York’s opening gold stood at $1,281.35 and in the euro at €946.90.
Silver Today – Silver closed at $21.33 up 6 cents on Tuesday. Ahead of New York’s opening it traded at $21.27.
Gold (very short-term)
The gold price should be stronger today, in New York as it approaches overhead resistance.
Silver (very short-term)
The silver price should be slightly stronger today, in New York.
Price Drivers
Gold & Silver – ‘D-Day - 1’....................
Fitch has put the U.S. on negative watch [ahead of downgrading?]. The media and the U.S. still firmly believe that a resolution is due, which will cause a rally in bonds at the longer end [10 – 30 yrs].But a look at the U.S. government tells us that the President gains both from standing resolute and from a default. Republicans appear in disarray in their own ranks and would lose heavily on the political front if they capitulated. Today should describe the state of U.S. democracy well. It certainly dominates finance, just as the dollar is the tree-trunk of the currency world with all other currencies dependent on it. That’s why the dollar is not weak, nor are other currencies. That’s why, with a default, global interest rates will rise, painfully, attacking economic growth.
There were no sales from the SPDR gold ETF holdings yesterday whose holdings now stand at 889.132 tonnes and the holdings of the Gold Trust at 175.41 tonnes. [Find out more from www.GoldForecaster.com and www.SilverForecaster.com to subscribe to our newsletters and visit www.StockbridgeMgMt.com to hold gold so it can’t be seized]
China will remain out of this scene. It has just announced a greater convertibility of the Yuan, with London becoming the hub for the Yuan in the developed world. Yuan convertibility will undermine the U.S. dollar’s hold over world finances and trade for the foreseeable future. This is the long-term current that will positively affect the gold price.
‘Bear-raiders’ in gold appear nonplussed, as they bet on a resolution by now, in the U.S. Unexpectedly, gold did not get a default premium and fell, so the absence of a resolution did not support their ‘raid’. Now gold is recovering to have another go at overhead resistance. The rest of the week should be tense and potentially explosive either way for the gold and silver prices.
Over in India, because of government blocks on imports, the premium on an ounce of gold has exploded to over $100, inviting smugglers to bring in as much as they can. Watch Dubai demand!
Silver – The silver is marking time waiting for D-Day tomorrow.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,168.85 | Sf1,150.79 |
US | $1,281.35 | $1,255.50 |
EU | €946.90 | €929.24 |
India | Rs.79,264.31 | Rs.77,721.73 |
-- Posted Wednesday, 16 October 2013 | Digg This Article
| Source: GoldSeek.com
