New York closed at $1,606.80. Asia and London then took the price down to $1,585 early in London’s morning. The euro fell below €1: $1.30 to €1: $1.2971 leaving gold in the euro at €1,221.96 down €27 on yesterday. The Fixing in London today was set at $1,585.50 down $42 and in the euro at €1,221.37 down 2€8. Ahead of New York’s opening it continued to slip to stood at $1,585.81 and in the euro, which also continued to slip, €1,222.68 while the euro was at €1: $1.2970.
Silver Today - Silver was$29.50 in New York, but fell in Asia and London to $28.83. Ahead of New York’s opening it stood at $28.86.
Silver (very short-term)
Silver will prove volatile again and look for a ‘floor,’ level either way, in New York today.
Gold – The gold price fell victim yesterday to the resurgence of the Eurozone crisis. The Greek elections led to even the E.C.B. indicating that Greece may leave the Eurozone by the end of the year. This also opens the way for Spain to follow too, whose debt rates have climbed above 6% now.
The euro broke down through the 1: $1.30 level as a consequence, pulling gold down through $1,600. As we have said many times before there is no correlation at a fundamental level between the euro’s value and gold. But traders in the market have made the link and it holds sway on a daily basis. Now the gold price enters a period of uncertainty but with the gold price capable of weakening further.
Of particular note is the continuing weakening of the Indian Rupee. This keeps gold price too high for investors at the moment, at Rs.53.75: $1. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]
Silver – The silver price broke down over 5% in the last day to $28.75. Before that the silver price Fixed in London at $28.77, after following gold down. There is even less correlation between the euro and the silver fundamentals, but that’s what traders are reacting to.
Now for the short-term at least, both metals are showing a downward direction. The next most important question for traders and investors to ask is how far will it fall? Can traders drive the gold and silver prices further down?
Julian D.W. Phillips for the Gold & Silver Forecasters