Silver Market Morning

Gold Today – In Asia the gold price went slightly stronger at $1,692.00. The euro was almost unchanged at €1: $1.3339 in London. Gold then Fixed at $1,692.50 and in the euro at €1,268.178 .The euro was slightly stronger at €1: $1.3346. Ahead of New York’s opening, gold was $1,691.25 and in the euro at €1,267.32. The gold price is almost static in the euro.

Silver Today – Silver continued to be strong and opened in London at $32.02. Ahead of New York’s opening silver stood at $31.96.

Gold _{(very short-term)}

The moment when the gold price moves strongly either way is getting close now. We cannot give a specific time but we suggest you get ready for it. Will it happen in New York today?

Silver _{(very short-term)}

Silver broke above $32 but continues to wait for gold to lead the way, in New York today.

Price Drivers

Gold & Silver – Today we heard the news that Japan is targeting 2% inflation and it will continue its asset purchases on an "open-ended" basis to further expand its monetary stimulus. We do expect to see Japanese Investors, fully aware that this policy will weaken the buying power of the yen both at home and abroad, turn to gold to turn this loss into a gain.

Perhaps more to the point is the impact this has on the qualities currencies are showing. The Swiss Franc and the Yen were touted for decades as a safe-haven from currencies that weakened themselves in this way. But as both countries lost international competitiveness for their export industries, policies change to adopt the same value weakening policies seen in other developed world countries. This marked the end of any currency being a measure of value. It is being generally accepted worldwide that currencies are failing to retain their value. But the seeming absence of rising inflation gives the impression that the loss of real value is unimportant. What it tells us is that the failure of the developed world economy to grow properly is simply countering deflation, neither of which is now apparent to the naked eye. But both are present! The question for gold and silver investors remains, when will this impact on precious metal prices?

With E.U. leaders trying to convince their audience that the worst of the Eurozone crisis is over as unemployment numbers tell another more structural story we become more and more aware that turbulent waters lie ahead of us. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].

Silver – Silver’s is pushing at the upside of its price performance trying to get through resistance and looking strong.

Regards,

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