Gold Today – The gold price rose in New York, yesterday to close at $1,594.60. In Asia and ahead of London’s opening it slipped slightly to $1,591 as the euro dropped 2 ½ cents after the worry over the Italian elections. In London it was Fixed at $1,597.25 up $5 and in the euro at €1,219.65 up nearly €19, while the euro was $1.33096. Ahead of New York’s opening, gold was $1,592.00 and in the euro at €1,216.99.
Silver Today – Silver continued to recover to $29.03 in New York yesterday. Ahead of New York’s opening silver stood at $28.84.
Gold (very short-term)
We expect gold to continue to consolidate ready to tackle the $1,600 level, in New York today.
Silver (very short-term)
We expect silver to continue to recover, in New York today.
Gold & Silver – Physical demand for gold in strength has appeared in Asia from both China and India, the key locations driving the gold price. With the gold price now having found a ‘floor’ Indian investors are happy to buy at these lower prices despite the pressure their government is placing on the gold market. Raising Duties and blocking Thai gold jewelry imports is not denting Indian gold demand. With the Lunar New Year holiday officially over now it’s business as usual in Chinese gold markets.
The Italian elections failed due to a hormone deficiency. The result is that new elections may be needed and Italy is not really being governed now. Will the comedian hold the swing vote there?
The political gridlock seems to have mired both sides of the Atlantic in a state where nations are virtually rudderless. All it takes now is for Germany to suffer similarly in their upcoming elections for the euro to really lose confidence. As it is the euro fell heavily markets are losing hope.
The blithe attitude towards the Eurozone crisis that has pervaded markets since Mario Draghi made his remark that he will do whatever it takes to keep the euro, is now evaporating, as the reality of Europe’s different national make-up returns to our screens. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] While the euro is falling today, gold is rising in the dollar as well as the euro and confirms what we said yesterday that gold is establishing a pattern of rising and falling in all currencies.
Silver –The silver price is still waiting for gold’s lead. With the hub of the silver market in the U.S. today should see it move higher once New York is open.
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
3 days ago