Gold Today – Gold closed in New York at $1,611.60 and in London’s early morning fell to $1,608. The Fixing in London today was set at $1,612.75 up $23.5. In the euro it was set at €1,286.187 up12. Ahead of New York’s opening gold stood at $1,612.28 and in the euro, €1,284.79 while the euro was at €1: $1.2549. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today – Silver rose 37 cents to reach $28.98 in New York and held there in London’s morning. Ahead of New York’s opening at $28.95.
Silver (very short-term)
Silver may well show a positive bias, today in New York.
Price Drivers
Gold – This week has seen U.S. gold investors come to life as Macro hedge fund buying was significant, once gold prices moved above U.S. $1,600 during early U.S. trading. As always U.S. investors buy on the rise. This morning has seen those prices hold in London as the fears not just about Greece’s elections may really make the Eurozone crisis suppurate, but propel both Spain and later Italy towards asking for a full-on bailout. Spanish ten-year yields at 6.8% are racing to the unsustainable 7% level that precipitates such requests. The risk of contagion remains real and European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.
- In the States, Federal Reserve Bank of Chicago President Charles Evans reiterated his call for more monetary easing a pleasant way of referring to more Quantitative Easing.
- The IMF called for the Bank of Japan to consider further monetary stimulus, including asset purchases of longer-dated government bonds and private securities. Since the beginning of this year, the Bank of Japan has engaged in monetary stimulus programs twice, most recently on 26 April, to stem appreciation of the JPY in an effort to spur economic growth. This policy choice undermines the role of the Yen as a safe haven. We feel there is no such thing as a currency ‘safe haven’ because it is in the interests of a nation’s trade to make it fall to retain international competitiveness. Gold and silver remain the only real international, non-currency ‘safe havens’.
Silver – Silver once again remain robust in the market waves buffeting precious metals. The next week is going to be dramatic for the currency world and in turn for gold and silver. Silver may well show the strongest reactions.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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