-- Posted Monday, 6 February 2012 | | Disqus

New York closed at $1,725 but Asia pulled it back up to $1,733 again. London then pulled it back down to $1,715 before it was Fixed at $1,717 down $17 on the p.m. Fix on Friday. In the euro it was Fixed at €1,315.306 down €9 on the Friday p.m. Fix. The euro was a cent weaker at the time at €1: $1.3054. Ahead of New York’s opening the gold price was falling to $1,715 again with the euro at €1: $1.3041 leaving the euro price of gold at €1,315.08.

Silver ignored the fall of gold and held the $33.65 level falling to $33.33 ahead of New York’s opening silver.

Gold _{(very short-term)}

Gold should consolidate at these levels in New York today.

Silver _{(very short-term)}

Silver price should maintain its strength in New York today.

Price Drivers

“The distance between success and failure which could come from misfortune or misunderstanding is very small. We are on razor’s edge.” These were the words of the Greek Finance Minister Evangelos Venizelos on Friday. After a weekend of talks, no further real success was recorded. The E.U. leaders want a cut in the minimum wage. Such a move ahead of nearby elections, is not one, we believe, politicians will make, because it would almost certainly cost the government the election. They will be seen as having done their best, but refusing to harm their people if they refused to go further. This would ensure their re-election it seems. If Greece fails to accede to the requests of the E.U. gold and silver will benefit for some time on that issue alone. It seems this issue, after laboring on for so long now is finally coming to a head this week, whatever the two sides say. We expect to see plan B unveiled this week. [To get more of the right perspectives on the gold and silver markets and where gold and silver prices are going, subscribe through www.GoldForecaster.com or www.SilverForecaster.com].  Until we see a conclusion to this matter, we expect the euro to continue on a weak-ish path.

In the developed world there are many issues apart from the state of the developed world’s economies that could derail the stability of the global monetary system in the future and lift gold and silver prices.

We must emphasize that it was Asia that lifted the gold price $8 because of issues unrelated to Greece, but London and New York that pushed it down in view of Greece’s difficulties. Perhaps the greatest influence on the gold price currently, is the improvement in economic conditions in the U.S., which in turn supports the cheaper imports from the Orient, in turn supporting the Chinese and Indian economies, which in turn raises the disposable income of the growing Asian middle classes, who favor gold and or silver in their savings. We see Asian growth continuing at vigorous levels for the next few years at least.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

-- Posted Monday, 6 February 2012 | Digg This Article | Source: GoldSeek.com

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