-- Published: Monday, 26 May 2014 | Print | Disqus
Gold Today – The gold price closed at $1,292.00 down $2.00 on Friday, in New York. In Asia and London the price rose a dollar. The euro stood weaker at $1.3643 slightly stronger than Friday as no Fixing took place in London. Ahead of New York’s opening the gold price was at $1,293.10 and at €947.74.
Silver Today – The silver price closed at $19.43 down 7 cents on Friday, in New York. Ahead of New York’s opening, it was trading at $19.47.
Gold (very short-term)
The gold price will continue in a tight range before a strong move either way, in New York.
Silver (very short-term)
The silver price will continue in a tight range before a strong move either way, in New York.
The European elections over the weekend have left the majority parties unchanged. While those parties have retained power, the parties objecting to austerity or who want out of the E.U. made very strong gains. Whether this is enough to place the movement towards fiscal and monetary union in jeopardy, we doubt. What it does tell us is that the prospect of Britain’s referendum on whether to stay in the E.U. points to its leaving and the overall unity of Europe to weaken, as the E.U.-objectors increase in number until the next elections. This precedent could precipitate others following in later years. But it does not fundamentally affect the future of the euro or the Eurozone. The national levels of cooperation with the E.U. may falter as voters become more vociferous, but this will not alter the policies currently being followed there, in the short to medium term. What it does do is to bring an element of uncertainty to the E.U.’s long-term future and is positive for gold in this context. To place this in perspective, the Gazprom deal of last week will have a far greater impact on gold’s future than these elections. Likewise, of more importance to gold are the measures we expect to see emanating from the E.C.B. in June on euro-style quantitative easing and potentially lower interest rates there. We expect the euro to continue to weaken over time, which is gold positive in Europe.
We are alert to the rising demand for gold from India, which is the main gold price factor we expect to see this week. [see the next issue of the Gold Forecaster [www.GoldForecaster.com] But for the restrictions on gold imports to be really eased, so that Indian gold demand rises substantially from there, the new government needs to have settled in their seats first. Today sees the new Prime minister sworn in there.
We continue to wait for the gold and silver prices to make a strong move one way or another. The longer we wait the greater the move, but the time before that move is made is running out now. For those unhappy with a volatile market or are uncertain on the direction gold will go we suggest they sit on the sidelines until direction is given.
There were no sales or purchases of gold from the SPDR gold ETF or from the Gold Trust on Friday. Their respective holdings stand at 776.893 tonnes and 164.02 tonnes.
Silver – The silver price is waiting for gold price [More in the www.SilverForecaster.com]
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
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-- Published: Monday, 26 May 2014 | E-Mail | Print | Source: GoldSeek.com