Gold Today –New York gold closed at $1,669 up $14.60 on the day. Asia and London took it up slightly to $1,670 ahead of the Fix with the euro slightly weaker at €1: $1.2547. Gold continues its run up against all currencies. Gold was Fixed in London at $1,666.50 and in the euro it was Fixed at €1,329.159. After the Fix and just ahead of New York’s opening, gold was trying to rise again to $1,667.75 in the middle and in the euro to €1,330.47.
Silver Today – Silver in New York closed at $30.51 after which London took it back slightly to $30.48. Just ahead of New York’s opening it stood at $30.50.
Gold (very short-term)
Gold may well consolidate, today in New York.
Silver (very short-term)
Silver may well consolidate, today in New York.
Price Drivers
Gold & Silver –Will gold and silver take a breather after this week’s strong performance? New York will tell us on this [frantic] Friday. It has spent a long, long time consolidating from $1,530 to $1,630 and now has broken free and brushed aside resistances easily. The question to be asked should be, “Have traders and speculators managed to close their short positions and open sufficient long ones by now?” With the weekend seeing markets closed some big decisions must be made as to which way the gold price will go next week, today. This could lead to volatile markets in gold and silver?
The news of the day comes from Greece where the Prime Minister is finding a poor audience to his pleas for more time. E.U. leaders want to see performance rather than more talk of leniency. It seems positions are hardening against Greece now. The political agenda on both sides of the Atlantic, points to the end of the second week of September as holding great significance for the developed world’s financial markets.
Meanwhile Indian demand is not picking up yet while internal selling of gold is happening as the gold price in the Rupee is achieving new highs ofRs.92,000 an ounce now. With the Indian economy continuing to weaken, the Rupee may well follow, taking the gold price even higher. When will Indian investors accept that it is the Rupee that’s falling together with a rise in the dollar price of gold? It is unlike them to shun the market, so we expect to see them back in the market soon. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
Silver - Silver is now consolidating but looking robust.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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