Gold Today – Gold closed in New York at $1,598.70, up $20. Asia took it back down to $1,592 ahead of London’s opening, while the euro stood at €1: $1.2516, holding Friday’s gains. Gold had risen 17 showing strength in all the main currencies over last week. The gold Fix was set at $1,596.25 and in the euro €1,263.256. Ahead of New York’s opening, gold stood at $1,591.20 and in the euro, €1,261.76 while the euro was at €1: $1.2611.
Silver Today – Silver opened in London at $27.32. Ahead of New York’s opening at $27.33.
Silver (very short-term)
Silver should have a stronger bias, today in New York.
Price Drivers
Gold & Silver – The end of last week saw a stronger euro but an even stronger gold and silver price. For those who feel that good economic or financial news is bad for the gold and silver price, please note that their rise last week was on the back of positive Eurozone news. It can be confusing to see these performances, suggesting that investors ensure that they look in depth at what drives the gold and silver prices. What we can say is that the full range of global economic and financial structural problems is supportive of gold and silver prices and likely to remain so until the deep, underlying causes of these problems is attended to properly. We have yet to see forces in the hands of the powers that be, of sufficient effectiveness to even address them, sad to say. To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.] Watch for more bad news on Greece and Spain this week, as progress on Greek austerity disappoints and Spanish banks look like suffering a larger drop in income than expected, from now on.
The Indian Rupee looks a little stronger this morning at Rs.55.845 down from a recent high of Rs.57.3. The translation of this into Rupee gold prices is a fall in the gold price while it rose in the dollar. While it remains the monsoon season in India, the agricultural sector [accounting for +50% of Indian gold demand] is busy in their fields, selling their harvest in August with profits turning into gold from mid-August onwards. However, there are sufficient urban investors, jewelers and wholesalers there able to take advantage of lower prices [and to stop selling as gold prices fall] to buy into gold and silver. We keep watching the Rupee carefully for this sort of action.
Silver – Silver is starting the week on a healthy note and one that we expect will sound loud and clear this week.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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