Gold Today –New York closed at $1,709.00 down $3. This morning, Asia and London dealers were lifting it back through $1,712 area. It then Fixed at $1,713.50 and in the euro at €1,322.655 down €4 while the euro was at €1: $1.29.55. Ahead of New York’s opening gold stood at $1,712.31 and in the euro at €1,323.61.
Silver Today – Silver closed higher at $31.75 down 30 cents in New York yesterday. It then rose to $31.96 in London. Ahead of New York’s opening it stood at $32.05.
Gold (very short-term)
Gold will consolidate with a narrowing trading range, in New York today.
Silver (very short-term)
Silver will consolidate with a narrowing trading range, in New York today.
Price Drivers
Gold & Silver – While Spain is putting on a brave face at the top of the government the markets are pricing in a bailout being taken by Spain. It takes more than political bravado to resolve the nation’s crisis which is now a time bomb set to go off around the end of the year.
This will coincide with the battle in government in the U.S. over the “fiscal cliff”. A combination of the two should elevate uncertainties and tensions, leading to more declines in currency values.
The elevation of gold to a level 1 asset on bank balance sheets at or after the end of this year has to be approved by governments on a nation by nation basis. We see this as it happening first in Europe, but then crossing the Atlantic shortly thereafter. Other nations will then fall over themselves to follow the major nations on this. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
Meanwhile, gold demand from Asia is on the rise now as Diwali approaches in India and growth burgeons in China. But traders and speculators will attempt to move gold and silver with the euro still. The euro has a slightly weaker tendency today.
Silver – Silver fundamentals are improving with positive news from China.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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