New York closed at $1,581.30 down $12.3 before the ‘clumsy’ seller came in again and pushed the gold price down in Asia again to $1,563. The euro stood at €1: $1.2876 after Friday’s close of €1: $1.2921. This morning in London, gold Fixed at $1,563.00 down $18 and in the euro at €1,213.792 down €15. Ahead of New York’s opening it started to bounce and stood at $1,564.00 and in the euro, which also continued to slip, €1,215.51 while the euro was at €1: $1.2867.
Silver Today - Silver closed at $28.91 in New York, down a dollar and fell further as London opened at $28.38 in early London time. Ahead of New York’s opening it stood at $28.44.
Gold (very short-term)
Gold will have a weaker bias while looking for a ‘floor’ level again, today in New York.
Silver (very short-term)
Silver will have a weaker bias while looking for a ‘floor’ level again, today in New York today.
Price Drivers
Gold – Short-term traders pressed even harder down and still hold control of the gold price and will press this advantage as the bad news on Europe continues to worsen. With Greek political parties unable to form a government, the coming elections next month are pointing to it being a referendum on austerity. The voters have already expressed their opinion on that in the last elections. We will be focusing on what a Greek exit from the Eurozone will mean for gold, silver and the euro. All we can say here is that we believe the markets are going to get a major surprise.
The E.C.B. has said in other words that the Eurozone is ready for an exit of Greece. While the drama is fresh and people are going to wait for the results of the election, we believe it is time to look forward. After all such turbulence always breeds opportunities as well as disasters. After 2-years of talking about Greece we are at the ‘defining’ moment that will pave the way forward and for Spain too. For sure, we have reached a point in this slow-motion drama that is going to change the developed world’s financial picture irrevocably. This is after all, not only about the Eurozone!
Silver – The silver price was knocked back on its heels again at $28.91 as it follows gold down and we feel, it will continue to do so. We are fully aware that traders are not as sure of their positions as they should be right now. Is it time to take profits?
A major point that is pertinent to gold and silver is the potential for emergency measures being instituted in Greece and in compliance with the Maastricht Treaty. These in themselves could well shock the markets and create tremendous volatility! [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
About the author
