Gold Today –New York closed down at $1,761.40 yesterday. Asia and London held it slightly higher before it was Fixed at $1,763.75 and in the euro at €1,369.797. The euro weakened slightly to $1.2854, down half a cent. Ahead of New York’s opening gold stood at $1,762.30 and in the euro at €1,371.11.
Silver Today – Silver closed at $33.72 in New York. London lifted it up to $34.80 this morning where it held ahead of New York’s opening.
Gold (very short-term)
Gold should consolidate, today in New York, following the euro’s moves.
Silver (very short-term)
Silver should consolidate, today in New York, following the euro’s moves.
Price Drivers
Gold & Silver – The Eurozone is back yet again but this time center stage.
· Greece is being called on to make more cuts. For Greece, drained already of its capital, there is no choice but to accede to the E.U. conditions. It is too late to return to the Drachma.
· For Spain it is not too late to return to the Peseta. They are watching Greece and the way it is being handled and don’t like it. Rajoy is being pressed to ask for a bailout and he is resisting, hoping the markets will not be too hard on him. The Spanish financial markets are falling heavily right now as they face this uncertainty. The Catalan province in Spain is holding snap elections which may produce a surprise for the government. The next few days will see if Spain asks for help or they go back to the Peseta.
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Silver – Silver, while fused at the hip to gold, still has a stronger tone. By moving with gold, which is moving in the opposite direction to the dollar but is stronger than the Euro, these moves counter currencies, emphasizing that silver is a monetary metal!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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