Gold Today –New York closed down at $1,764.50 on Friday $4 down on Thursday. Asia and London held it there and it was Fixed at $1,766.75 and in the euro at €1,369.361. The euro weakened slightly to $1.2911, down a cent. Ahead of New York’s opening gold stood at $1,766.85 and in the euro at €1,366.05.
Silver Today – Silver closed at $33.96 in New York. London lifted it up to $34.05 this morning. Ahead of New York’s opening it stood at $34.17.
Gold (very short-term)
Gold should consolidate, today in New York.
Silver (very short-term)
Silver should consolidate, today in New York.
Price Drivers
Gold & Silver – Monday started with the Eurozone worries again as markets feared that Greece would be forced to now cut its Pensions, but this may still not be enough. Spain is holding off announcing it needs a bailout to the annoyance of Germany. An announcement is expected this week.
But that is not why gold is pausing now. On some charts the rise has been nearly vertical [when one eliminates time] But no price just rises. There are inevitably “stale” bulls or investors who bought when the price was higher and have been waiting for prices to recover so they can exit the market.
But a new facet of the gold price is also being seen. When prices in the gold market are due for a fall because of the appearance of sellers central banks see the offer of gold and take it up. That causes price falls to be slight. So the charts do not rise and fall as is usual and yet weak holders do exit the market. So we may well not see the usual consolidation periods.
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Silver – Silver is again moving in synch with gold and should do so from now on.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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