Gold Today –New York gold closed at $1,663.90. This reflected the pull back of the euro against the dollar. Asia and London held it there throughout the day. Just ahead of New York’s opening, gold was trying to rise again to $1,665.15 in the middle and in the euro to €1,327.00.
Silver Today – Silver in New York closed at $30.68 ignoring gold’s pullback after which London took it higher to $30.90 where it stood just ahead of New York’s opening. Silver continues stronger than gold.
Gold (very short-term)
Gold may continue to consolidate with a stronger bias, today in New York.
Silver (very short-term)
Silver may well show a stronger bias, today in New York.
Price Drivers
Gold & Silver –While Portugal is showing a more faithful course of acceptance of the bailout terms their economy continues to contract. What’s the point of making an agreement over future payments if you don’t know what you will be able to afford? It is this debtor / creditor attempts to set all in stone that ignores the realities of the Eurozone.
We do not believe that the driving force behind the gold price is the Eurozone crisis or any other individual political matter in the developed world. The sum total of the developed world’s financial system has much more to do with developed world investors buying gold. But today the driving forces of the gold price have now been joined by Indian gold buying, as we forecast would be the case, has returned to the market ahead of a stream of festivals. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] The Indian Rupee is 6% stronger than at its weakest, but we are seeing buying from investors there who do not follow exchange rates or interest rates. They are from investors driven by a mixture of religious beliefs, the need for financial security [outside government control] and the need for their wealth to remain off the authorities screens.
With the Indian government openly acknowledging the success that gold has had in rising while inflation was, they have endorsed the wisdom of owning gold [which I’m sure most of the government do too] over time. So it will continue!
Did you know that it was just over 43 years since gold was at $35 an ounce? That means it has appreciated 47.5 times since then, 100% a year! We think Indian gold investors are wise too.
Silver - Silver is rising faster than gold and looks like continuing to do so.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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