Gold Today – Gold closed in New York at $1,581.00 $4 higher, yesterday. London’s morning Fix today was set at $1,583.00 up $3 on yesterday and in the euro at €1,291.296, while the euro stood at €1: $1.2259 down nearly 20 cents on the dollar. Ahead of New York’s opening gold stood at $1,581.75 in the middle and in the euro at €1,293.28.
Silver Today – Silver closed on Friday in New York at $27.25. Ahead of New York’s opening at $27. 10.
Gold (very short-term)
Gold should have a mixed to better performance today, in New York.
Silver (very short-term)
Silver should have a mixed to better performance today, in New York.
Gold & Silver – The tightness of the trading range grows by the day. As demand and supply come into balance it is rather like a see-saw where the weight is evenly distributed. When that happens and one adds the tiniest extra weight, the see saw is tipped, one way or the other. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.] We need to know which side that tiniest of extra weight is going to be added.
Friday is usually the most frantic day of the week in New York so let’s see if today will be.
Concern is growing over the state of the Indian Monsoon, which is 21% below the average. The gold buying public in rural India does not hold back sowing in the same way as the big commercial farmers elsewhere do. They just hope for rain and wait to get it. So does 20% less make a huge difference to the size of the crop? We will have to wait until late August to see. One has to remember that Indian investors have been out of the market because of high prices, so have a great deal of powder that’s still dry. Their ability to buy is greater at this time of the year than in the past, but will they buy? The current Rs.87,000 per ounce has been a ‘floor’ for some time now and they like a strong ‘floor’.
In Europe we see the Spanish debt crisis worsening, but are of the opinion that Germany will bail out Spanish banks. There is too much to lose if they don’t.
Silver – Silver’s is still marking time waiting for direction from gold, which in turn is waiting for something much larger than the moves of the euro.
Julian D.W. Phillips for the Gold & Silver Forecasters