Gold Today –New York closed at $1,222.50 down $6.00. In Asia the gold price was lifted to $1,224.00. London Fixed the gold price at $1,221.75 down $11.75 and in the euro, at €1,072.557 down €8.56, while the euro was slightly weaker at $1.1391. Ahead of New York’s opening gold was trading in London at $1,220.10 and in the euro at €1,068.06.
Silver Today – The silver price closed at $16.95 down 34 cents. Ahead of New York’s opening it was trading at $16.75.
Gold (very short-term) The gold price will consolidate, today in New York.
Silver (very short-term) The silver price will, in New York today.
There were sales of 3.25 tonnes of gold from the SPDR gold ETF but none from the Gold Trust on Monday as gold prices slipped back as Chinese demand slipped back ahead of the Chinese Lunar New Year on Thursday. The holdings of the SPDR gold ETF are at 771.513 and at 167.03 tonnes in the Gold Trust. We expect support to be really tested for the next week and a half.
With worlds apart between Germany and Greece, the offer from the E.U. was refused as absurd. Political considerations demand that both sides say a deal is still possible, but we know of no one that believes this. The only question remaining is, “Will the Greek government wait for the E.U. to cut off funding or will they act before that, in the face of E.U. intransigence?” After all, if the Finance Minister goes home after the E.U. halts funding, a turning back to the Drachma would have to be automatic and not seen as a confrontational move by the new government of Greece. So between now and the beginning of March the political dance must go on.
But we do not believe it will end up a Greek tragedy. We see that within one year Greece will start to thrive. The E.U. cannot offer anything solid because Spain, Portugal and maybe France, would want it as well and so may any other weak member states of the Eurozone. And it appears that the Greek government may well be circumspect about leaving the E.U. of its own volition. Better to be kicked out? If we are correct then there will be no progress until the end of the month, or the Tuesday after next. [Subscribe to www.GoldForecaster.com & www.SilverForecaster.com].
Silver– The silver price took a knock yesterday and has fallen back well below yesterday’s level. Such volatility will persist while gold remains in the current tight range on support, without giving direction.
We repeat: The next two weeks should prove watershed periods for both gold and silver.
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)