Gold Today – Gold closed in New York at $1,624.30. The Fixing in London today was set at $1,619.00 the same as yesterday morning. In the euro it was set at €1,289.834 again the same as yesterday. Ahead of New York’s opening gold stood at $1,624.50 and in the euro, €1,287.85 while the euro was at €1: $1.2614.
Silver Today – Silver held steady in New York at $28.66 in New York and held there in London’s morning. Ahead of New York’s opening at $28.75.
Silver (very short-term)
Silver may well be steady ahead of a strong move either way, today in New York.
Price Drivers
Gold – With the weekend upon us market risks in gold and silver have heightened considerably as the outcome of the Greek election is uncertain, with the left-wing evenly matched with the right wing. By the end of the weekend we could see Greece still in the Eurozone or out of it. Out of it, will lead to enormous contagion ripples hurting the entire Eurozone badly, led by Spain’s request for a bailout. We could also see the imposition of Exchange and Capital Controls, ready to be imposed in Switzerland and threatened already Europe. This is a more precarious situation than we have seen since the start of the debt crisis in the developed world and may well preceded an even worse one.
As it is the developed world that dominates short-term gold prices, we can expect it to move prices anytime soon, even today, but most likely Monday. Monday will see them moving after the event. If the result is for the right in Greece, then prices will be influenced by these elections for a few weeks, but if for the left, prices will be affected for the much longer-term. Will this be good for gold and silver? [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver – Silver is again, cautiously steady, waiting for politics to give a clear direction. So far the underwhelming performance by politicians on both sides of the Atlantic is pointing to more uncertainty and fear in the financial world. This weekend will give some direction for the silver price too. Please note that the issue for silver is, are currencies an effective measure of value for the precious metals or will their weakness become market apparent as seen in precious metal prices?
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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