Gold Today –New York closed at $1,767.50 up $4.50. This morning, Asia and London dealers held it around that level. Gold was then Fixed at $1,767.00 and in the euro at €1,362.795, while the euro stood at $1.2966. Ahead of New York’s opening gold stood at $1,768.26 and in the euro at €1,362.82.
Silver Today – Silver closed higher at $33.98 in New York. London Fixed it at $33.79. Ahead of New York’s opening it stood at $33.85.
Gold (very short-term)
Gold has a tight trading range now. We expect a strong move, either way, today in New York.
Silver (very short-term)
Silver has a tight trading range now. Expect a strong move, either way, today in New York.
Price Drivers
Gold & Silver – The world’s focus remains on the I.M.F. conference in Tokyo with its more realistically sober assessments for the global economy and what needs to be done about it are being aired.
But little solid is forthcoming from either the Eurozone leaders or those in the U.S. where the distraction remains the Presidential race. But what remains pertinent to gold is the strength of the euro on foreign exchanges, where it is once again assaulting the €1: $1.30 levels. This time gold did not rise with it but fell by €8.
That the Eurozone debt crisis should have so little effect on that exchange rate is tempered by the dollar falling against most currencies and in particular against the Chinese Yuan. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
We live in a financial world where the short-term picture is often used to blanket the longer-term fundamental picture. Journalists have to produce daily stories and the emphasis is often on the news being a ‘show’. This is a trader’s world, but not one where we can follow and maximize profits. To do that, we need to weigh the dominant drivers of precious metals giving due weight to each factor.
Silver – Silver is fighting hard to stay around that $34 level.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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