Gold Today – Gold closed in New York at $1,573 again. London moved down only slightly to $1,569, while the euro weakened slightly to €1: $1.2450, 50 cents lower. The gold Fix was set at $1,567.75 the same as yesterday and in the euro €1,261.466, €6 higher. Ahead of New York’s opening, gold stood at $1,571.30 and in the euro, €1,260.97 while the euro was at €1: $1.2461.
Silver Today – Silver fixed at $26.81. Ahead of New York’s opening at $26.95.
Gold (very short-term)
Gold will continue an important phase of its consolidation ahead of a strong move soon, today in New York.
Silver (very short-term)
Silver will continue an important phase of its consolidation ahead of a strong move soon, today in New York.
Gold & Silver – Gold trading volume has been low recently giving traders an inordinate power over gold and silver prices. Traders are keenly aware of the strength of underlying support and are hesitant to push prices lower for fear of being caught short. Hence the tightening trading band in the prices of both.
The weak Rupee continues to keep Indian demand at bay, as you can see below in the very high Rupee prices for gold.
Will the next strong move be prompted by more bad news in the Eurozone? Possibly. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]. In the meantime gold and silver continue to base build around the mid-to higher $1,550 level.
In the 19th Summit on the Eurozone crisis [Yawn, Yawn] Germany is likely to emphasize that it will not back other member’s debts through Eurobonds. One observer put it this way, “It’s like giving someone with a poor record on credit and spending your credit card to spend as he wants.”
Meanwhile, the situation is worsening for Italy by the day, as it lines up to follow Spain to go through the gauntlet of unhappy markets and rising yields.
Silver – Silver continues to be robust, with strong fundamentals and a technical picture that continues strong despite the drops in price of late. But it too, is seeing a tightening of its trading range ahead of a strong move either way.
Julian D.W. Phillips for the Gold & Silver Forecasters