Gold Today – Gold closed in New York at $1,620.40 and in London’s early morning fell to $1,615.75. There is no Fixing in London today due to the Jubilee celebrations. Ahead of New York’s opening gold stood at $1,618.22 and in the euro, €1,301.55 while the euro was at €1: $1.2433. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today – Silver slipped slightly in London to $28.25. Ahead of New York’s opening at $28.27.
Silver (very short-term)
Silver may well pause again and consolidate at these levels, today in New York.
Price Drivers
Gold – Gold has so many facets contributing to its performance, but on a daily basis, one facet contributes more than others. After the dramatic $60 jump of the gold price at the end of last week the gold and silver prices [with London closed yesterday and today] are being moved by dealers and speculators alongside the euro again. The euro fell back to the €1: $1.23 area, then recovered yesterday to just under €1: $1.25. Today the euro is slipping again back to €1: $1.2430. We would emphasize that London is gold’s main gold market and with it closed the gold price does not reflect the correct demand and supply balance as described by the gold price. Tomorrow, after London has opened, we will see the market get back to full activity.
Meanwhile, the euro is being traded in the world’s foreign exchanges. Today sees yet another emergency meeting of Eurozone leaders, but the world is so jaundiced by their inaction that nothing is expected to come from the meeting.
Across the Atlantic, Treasury bonds have fallen in the last day showing sales implying future inflationary expectations as more Q.E. will be needed to counter inflation. This is almost certain to happen if the U.S. economy shows definite signs of slowing. Because the Eurozone is likely to lead the way down to a recession, we expect more Q.E. there first.
The Indian Rupee at $1: Rs.55.8755 is still likely to remain weak. The price of gold remains close to record levels today.
Silver – Silver is now moving with gold and the euro in a quiet day for silver in London.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
About the author
