Gold Today –New York gold closed at $1,691.80 almost 2% than New York opened on Friday. In London gold opened lower at $1,687 and Fixed at $1,686.00 while the euro stood at 1: $1.2566. With no New York opening today [Labor Day] London dominated the price which stood at $1,688.00 and in the euro at €1,342.67.
Silver Today – Silver in New York closed at $31.74 up nearly $1.40 or nearly 5% on the day. With no New York market today silver stood at$31.76.
Gold (very short-term)
Gold should again be stronger, today in New York.
Silver (very short-term)
Silver should again be stronger, today in New York.
Price Drivers
Gold & Silver –Friday saw the market respond to Mr. Ben Bernanke readiness to add more QE. The gold price was propelled to just under $1,700 and silver sprinted past it to rise almost 5% on the day. Silver’s fundamentals are very strong currently and likely to remain so for some time to come.
With 75% of Germans believing that Greece should exit the Eurozone such talk is now almost paving the way for their departure. Many companies have made contingency plans for such an event. To us this is also paving the way towards the departure of Spain from the Eurozone and potentially the breakup of the Eurozone as we now know it. And yet the euro looks strong above $1.25. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]. At last gold is reflecting the state of the monetary world we are in. Its break away from the euro is symptomatic of that. In other words it is now rising in all currencies and set on a positive path.
We expect that next week we will see fireworks in the monetary world as so many events are maturing at the same time, including the Fed and E.C.B. rate setting meetings. We believe that we may well see coordinated action by the two central banks so as to have maximum impact on the markets. This week will be a lead-up to those events.
Meanwhile the fundamentals, below gold remain strong.
Silver - Silver traders decided it was better to be long over the holiday weekend and it paid to do so!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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