Gold Today –New York closed at $1,706.90 down $21.5. This morning, Asia and London dealers are trying to make it bounce at $1,711 before the Fix at $1,708.50 and in the euro at €1,321.039 €4 higher while the euro was at €1: $1.29.33 down a cent. Ahead of New York’s opening gold stood at $1,709.56 and in the euro at €1,320.74.
Silver Today – Silver closed lower at $31.64 down 76 cents in New York yesterday. It then rose to $31.90 again as it returned to consolidation phase in London. Ahead of New York’s opening it stood at $31.95.
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 continues to see traders and speculators pushing gold 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]. Both gold and silver are falling in tandem with the global financial markets and oil, now at $86 down from $92 last week. This reflects a downturn in growth globally. Politicians and other world leaders need to act decisively to correct the state of developed world finances. Without it, the slide in growth continues. We do not expect this to pull gold and silver down all the way. Once the current correction is completed we expect gold and silver to separate from other financial markets. There is just too much on the monetary side of gold supporting it. We do not feel the trend has changed!
The head of the E.C.B. is trying to persuade the German Parliament to accept his bond-buying program in the face of opposition from the Bundesbank. Will he succeed? If he doesn’t it means discord at the top of the E.U. and its central bank. Without unity the future of the euro remains in doubt. Such uncertainty will cross the Atlantic and affect the rest of the developed world.
Silver – Silver is holding tight to gold’s moves today.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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