Gold Today –New York gold closed at $1,655.30. In London gold opened a dollar higher and then added another dollar to Fix at $1,657.75. In the euro it Fixed at €1.319.025 while the euro stood at €1: $1.2568. Ahead of New York’s opening the gold price stood at $1,660.15 and in the euro at €1,318.89.
Silver Today – Silver in New York closed at $30.36 and opened slightly higher at $30.40. Just ahead of New York’s opening it stood at$30.57.
Gold (very short-term)
Gold should again be quiet ahead of the long weekend in the States, today in New York.
Silver (very short-term)
Silver should again be quiet ahead of the long weekend in the States, today in New York.
Price Drivers
Gold & Silver –The last day of the week precedes the U.S. Labor Day holiday weekend with US markets shut on Monday. Will gold traders want to settle up and book-square before the speech to avoid being caught on the wrong side in a market with low liquidity should Mr. Bernanke surprise the financial markets with a bold statement favoring or quashing further easing prospects or will they see less risk in holding gold positions in the light of his strong statement saying he is ready to ease further if there is no evidence of “a substantial and sustainable strengthening in the pace of the economic recovery”? This will decide the way forward for gold and silver today.
With all the hype about the Presidential race one stark reality remains. If the Democratic President is given a second term, the U.S. will remain in political gridlock. If the Republican nominee wins the Presidency, the U.S. will remain in political gridlock. This is one of the key reasons why the U.S. economy is not showing substantial and sustainable strengthening and why the dollar’s woes alongside the euro’s woes continue to guide the prudent to precious metals. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
What is certain is that the improved monsoon in India is more likely to benefit gold more than the Republican Convention. Indian gold and silver demand is rising, but is also now disguised by increased smuggling there to avoid government duties and taxes. Indian investors are back!
Silver - Silver is marking time until after the last of the U.S. holiday weekends until Christmas.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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