Gold Today –New York closed at $1,732. Asia and London held it at that level. The euro is still rising at rose in London’s morning to €1: $1.2802. The gold price was Fixed at $1,731.00 and in the euro at €1,352.766. Ahead of New York’s opening gold stood at $1,732.28 and in the euro at €1,354.03.
Silver Today – Silver held steady through New York and London’s morning at $33.63. Ahead of New York’s opening it stood at $33.64.
Gold (very short-term)
Gold should consolidate with a stronger bias, today in New York.
Silver (very short-term)
Silver should hold steady but with a stronger bias, today in New York.
Price Drivers
Gold & Silver –As tension mounts over the German Constitutional court’s decision on whether the ‘rescue fund’ for the Eurozone, is constitutional, gold and silver paused at their recent highs awaiting that decision and the decision of the Fed across the waters in the U.S. on whether to act to issue more Quantitative Easing. Markets have factored in a 99% chance of this happening. This is where market attention is directed right now. Gold and silver are moving up with brief pauses irrespective of what the E.U. leaders are doing. It's a case of disillusionment with all the efforts to date and the realization that without cohesive, singular, political support and drive from both government and central banks there is little hope of the decisive action, needed globally, to resuscitate growth. Gold and silver prices rallied last week, up 3.1% and 7.2%, respectively. With the Fed and ECB in action of late we have the prospect of a possible double-whammy for growth in the developed world. A push for growth simultaneously on both sides of the Atlantic by the Fed and ECB may kick start growth though the growth won’t likely last for long. And so, because gold and silver rise in inflationary and deflation environments, global markets are buying precious metals.
What may prove an insurmountable obstacle is the refusal of the Spanish Prime Minister’s refusal to accept E.U. bailouts should they require a cut in Pensions. Will we see the Peseta back again? In both Greece and Spain stands are being taken which will throw the onus of ejecting nations from the Eurozone back to the E.U. This crisis still has a long way to go still.
Silver – Silver remains solid, backed primarily by industrial demand right now. Investment demand has still to show its face in the current rising price environment.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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