New York bounced back to $1,573.70 and Asia continued to take it higher, with London running it up to Fix at $1,590.25. The euro was stronger at €1: $12770, where it was when the morning Fixing took place. In the euro it Fixed at €1,245.204. Ahead of New York’s opening gold looked a little better at $1,592.15 and in the euro, €1,246.69 while the euro was at €1: $1.2771. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today - Silver opened at $28.70 in Asia and slipped later to Fix at $28.39. Ahead of New York’s opening it stood at $28.45.
Gold (very short-term)
Gold should have a stronger bias, today in New York.
Silver (very short-term)
Silver should have a stronger bias, today in New York today.
Price Drivers
Gold – The G-8 did it again, nothing! But the mood is turning from austerity to growth. After all when a man’s cash flow is falling, that’s not the time to ask him to repay debt. Getting his cash flow up and then asking him is the effective way to go. Meanwhile, Greece’s banking system is headed for collapse as depositors continue to withdraw their money. June 17 elections may be too far away!
Add this to the U.S. re-focusing on its deficit with a potential of falling off a cliff in their cash flow, from year’s end onwards. While this is 6 months to a year away, but the financial markets are keenly aware of the coming crises. There are many maturing structural problems building across the globe that appear to be intractable. These will continue to add to positive flows into gold and silver.
Gold is now vigorously attacking the $1,600 level as we forecast to our subscribers when gold was just about at its recent lows. Last week’s turnaround was as expected.
The Rupee continues to weaken and stood at Rs.54.665 in Asia at the start of the week. An ounce of gold there [without premiums] cost Rs.86,261 as you can see below. This is close to its recent high and up from Rs.83,500 low of late. The World Gold Council forecast of last week, reassures us that the flow of demand into gold and silver from Asia will continue in the years to come. China has stated that it is going to stimulate growth, shortly. We expect measures to achieve that to be announced shortly. This is, again, positive for gold and silver. The bull market for gold & silver is not over!
Silver – Silver was better at the beginning of the week after the turnaround in precious metal prices at $28.70 up 50 cents on New York’s close. After all, when was the last time that silver moved as a simple commodity?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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