Gold Today –New York closed at $1,728.5 up $8. This morning, Asia and London dealers pulled it down to lifted it to $1,717 before it was Fixed at $1,717.00 and in the euro at €1,317.223 while the euro was at €1: $1.3035 23 cents lower. Ahead of New York’s opening gold fell again to $1,712.70 and in the euro at €1,314.43.
Silver Today – Silver closed higher at $32.40 up 32 cents in New York yesterday. It then fell back to $31.85 down 33 cents in London and ahead of New York’s opening it stood at $32.19.
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 – The gold and silver prices continue to see traders and speculators following the technical patterns and pushing it down towards $1,700. It has yet to bounce off support still. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
We are again looking at falls in nearly all financial markets across the globe. Markets are discounting a global economic downturn and dimming prospects of growth. Skepticism at “12 million jobs” in the U.S. being created in the future has added to the waning markets.
While this is affecting gold and silver, we cast our minds back to the same time in 2007/8 when all markets pulled back then. The skepticism then worsened but turned investors to gold and silver. Will the same happen again? This time, emerging world central banks are joining the fray and buying gold and prices are attractive to Asian buyers. Meanwhile traders and speculators in the developed world hold the reins of the financial markets, including the precious metal markets.
In India the current gold price translates into a Rupee price of Rs. 92,000 an ounce. We expect this to trigger Indian investor demand.
Silver – Silver is pushing through strong support at the moment.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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