Gold Today –New York closed at $1,741.00 down$7.70. This morning, Asia and London dealers dropped it further to $1,733 before it was Fixed at $1,732.75 and in the euro at €1,327.269 while the euro was at €1: $1.3055. Ahead of New York’s opening gold stood at $1,734.43 and in the euro at €1,330.62.
Silver Today – Silver closed lower at $32.74 down 40 cents in New York yesterday. It then dropped to $32.31 in London and ahead of New York’s opening it stood at $32.36.
Gold (very short-term)
Gold will consolidate with a weaker bias, in New York today.
Silver (very short-term)
Silver will consolidate with a weaker bias, in New York today.
Price Drivers
Gold & Silver – While the Eurozone attempts to halt sovereign debt crises by ensuring banks handle their own problems under the oversight of the E.C.B. and able to tap into the ‘bailout’ fund through the E.C.B., at some point in the future, the Eurozone crisis festers on, unresolved and under the control of politicians but the euro still looks strong against the U.S. dollar. But gold is falling against both for the moment and may well continue to do for a little longer until support holds it in place.
Indian buying is picking up right now and we see Chinese buying accelerate too as gold prices at these levels are attracting buyers.
Just as central bank buying is driven by available volumes in the market place, so gold’s progression to a much stronger monetary role will not affect the gold price until it is a ‘fait accompli”, but that timetable could be much shorter than you think. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
Silver – Silver is shadowing gold still and is now resting on strong support.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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