Gold Today – Gold closed in New York at $1,598.70, up $20. Asia took it up to $1,606 ahead of London’s opening, while the euro stood at €1: $1.2602. The gold Fix was set at $1,608.50 and in the euro €1,278.312. Ahead of New York’s opening, gold stood at $1,609.65 and in the euro, €1,279.23 while the euro was at €1: $1.2583.
Silver Today – Silver opened in London at $27.87 up 50 cents. Ahead of New York’s opening at $27.98.
Silver (very short-term)
Silver should have a stronger bias again, today in New York.
Price Drivers
Gold & Silver – Gold continues to rise against a backdrop of a more positive tone in the Eurozone. For once the Eurozone crisis did not dominate the news channels. More banking turpitude did. This time it may well affect the biggest banks in the world, all those that are big in the LIBOR market. When this happens time and time again, scandal after scandal, it is difficult to retain confidence on the monetary system and to trust it with your future investments. As it is it takes a couple of months to go through all the anti-money-laundering and know-your-client procedures to open an account at a bank. So their position as guardians of the monetary system seems inappropriate? One of the virtues of gold and silver is that it cannot sin only people can.
With gold and silver continuing to consolidate and now threatening overhead resistance while the euro holds its recent highs at €1: $1.26 the precious metals are showing, once more an independence from currencies. We expect the day to be a positive one for both metals today. . [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]
The Indian Rupee looks a little stronger this morning at Rs.54.6850 up a full Rupee over yesterday’s level. Perhaps the Reserve Bank of India’s policies are starting to bear fruit? We think they must do much more to strengthen the Rupee longer-term. What is of particular interest is the fact that gold imports are not really part of the equation in the monsoon season at present, so other factors are showing how controllable by the RBI they are. The stronger the Rupee the lower the gold price there in this important sector of the gold market.
Silver – Silver is moving with gold step for step and should continue to do so today.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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