Europe’s debt crisis has seen gold prices climb to new record highs in euros and British pounds at EUR 1,087.80/oz and GBP 944.93/oz respectively. Contagion concerns are mounting due to the failure of the ECB, the IMF and respective governments to tackle the sovereign debt crisis.
Cross Currency Rates
The scale of the debt crisis effecting Greece, Ireland, Italy, Belgium, Portugal and Spain is leading to growing concerns of a knock on deleterious impact on European banks and the global banking system.
The real risk of contagion will likely lead to increasing safe haven demand for gold.
Gold should also be supported today by the OECD’s warning regarding the U.S. and Japan’s very poor fiscal situations and their lack of credible plans to tackle high and spiraling budget deficits.
Gold Bullion in US Dollars – 30 Days (Tick)
Gold has broken out in euros and pounds and this strength is likely to again be seen in dollar terms with the record nominal high of $1,577.77 likely to be challenged again.
There is good support at $1,460/oz (see chart above) with strong physical demand seen internationally.
Gold in dollar terms is challenging resistance at $1,527/oz and a break out and close above this level could see a quick move to challenge resistance at the record nominal high of $1,577.57/oz and the psychological level of $1,600/oz.
Gold Bullion in US Dollars – 20 Days (Tick)
Long term the real record high of $2,400/oz from 1980 remains likely to be achieved.
Gold bears and gold bubble callers’ predictions of falling gold prices are again likely to be proved badly wrong. Rather than continually attempting to predict the future and predict the top of the market they would better serve their readers by properly analyzing the real fundamentals driving the market and informing people of the importance of having at least some allocation to gold – especially from a financial insurance and diversification point of view.
SILVER Silver’s fundamentals remain even stronger than gold’s and the recent paper driven sell off due to a series of margin calls and heavy selling on the COMEX appears to be over.
Silver has support at the recent low of $32.31/oz. There are continuing calls by knowledgeable silver analysts for silver to rise above $100/oz which suggests that silver may rise above its nominal high of $50/oz sooner than the silver cynics expect.
Silver Bullion in US Dollars – 10 Days (Tick) GoldCore Limited
Ireland: 14 Fitzwilliam Square Dublin 2
United Kingdom: No. 1 Cornhill EC3V 3ND UK
IRL +353 (0)1 632 5010 UK +44 (0)203 086 9200 US +1 (302)635 1160
Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors’ interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is regulated by the Central Bank of Ireland. The provision of precious metal product or service does not require licensing, authorisation, or registration with the Irish Central Bank and, as a result, it is not covered by the Irish Central Bank's requirements designed to protect consumers or by a statutory compensation scheme.
GoldCore is committed to complying with the requirements of the Data Protection Act. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies.The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager - GoldCore, 14 Fitzwilliam Square, Dublin 2, Ireland marking the envelope ‘data protection’.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
