Gold Today –New York closed at $1,704.10 up $6 on Friday. This morning, Asian & London dealers lifted prices higher to reclaim the $1,710 level. It was Fixed at $1,708.50 up $11.50 on Friday’s Fixing. In the euro it was Fixed at €1,324.111 up €11.5 while the euro was slightly weaker at €1: $1.203. Ahead of New York’s opening, gold was $1,712.60 and in the euro at €1,326.36.
Silver Today – Silver closed in New York at $33.06 on Friday. In Asia and London, silver climbed back to reclaim the $33.33 level. Ahead of New York’s opening it stood at $33.35.
Gold (very short-term)
Gold is expected to show a stronger bias, in New York today.
Silver (very short-term)
Silver is expected to show a stronger bias, in New York today.
Price Drivers
Gold & Silver – The prices of gold and silver once again are reflecting the Technical picture. But this time it is the consolidation pattern. The support below $1,700 came from longer term investors and short covering last week. This is a tidal influence that we feel will persist in the days ahead.
We do expect very influential news this week to come from the Fed on more monetary stimulus. The clock is ticking on the fiscal cliff and debt ceiling. The problem as the Prime Minister of Luxembourg said a while ago, “We know what to do, but the problem is getting re-elected afterwards!” For those not sure of what is the higher priority, politics or sound money management, the next three weeks will demonstrate which really is.
Across in the Eurozone, this week’s episode turned back to Italy, where Monti, the un-elected head of the country announced he is stepping down. A smiling Silvio Berlusconi presented himself to return to power there. Are we mistaken, but wasn’t it under his watch that the country headed into the mess? Haven’t any lessons been learned? This news will make markets wobble, but the election there will not take place until early next year. This is yet another reason why the future of the Eurozone remains bleak. It’s good for precious metals though. When a boat has a persistent leak that is not repaired, there is a point at which it sinks. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
A word of caution for investors in 2013! Events don’t happen by accident. Crises don’t happen by accident. Capital Controls even the confiscation of gold pre-empt disasters and are planned to catch all by surprise. 2013 onwards will require foresight and sound perspective as the financial world becomes more volatile and unexpected.
Silver – Silver should follow gold but may well show more vigor on the upside!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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