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Asia took the gold price to $1,670 ahead of the London opening, where
it held before London lifted it even more to $1,673. The euro was a tad lower
at against the U.S. dollar to €1: $1.2934 at London’s opening
placing the euro gold price at €1,293.49 up €18 on Friday.
London Fixed the gold price at $1,675.00 and in the euro at
€1,294.936. The euro stood at €1: $1.2935. Ahead of New
York’s opening the gold price was tending higher at $1,676.55 a $1.5
higher than the Fix with the euro at €1: $1.3004 a cent higher, leaving
the euro price of gold at €1,289.26, down €4.
Silver is now climbing faster than gold and showing a strong robustness
that we haven’t seen for some time. It opened in London at $32.40 up
over 5%. Ahead of New York’s opening silver stood at $32.66.
Gold (very short-term)
The gold price should have a stronger bias in New York today.
Silver (very
short-term)
The silver
price should have a stronger bias in New York today.
Price Drivers
As market today continue their sanguine attitude to
the developed world financial ails, along the lines of, “things are at their worst so
they must get better from now
on,” we perhaps need to be reminded that the gold and silver prices
performed their best between 2005 and 2007..and beyond when the developed
world economy looked its best. So a recovery is good for gold!
But things can get worse. The talks to finalize the
Greek haircut are going on and debtors want to keep clipping, but creditors
are shouting enough! If this impasse does not give way and a default appears,
then the 1914 assassination in Sarajevo that ushered in the First World War
may see the financial equivalent? The developed world banking system may well
be the trenches of our day.
Newt Gingrich is calling for the resurrection of the
“Gold Commission” to bring back ‘sound money’. His
victory over the weekend and improved ratings, have added a dash of
credibility to this prospect now.
There is a way to make this work but it will be somewhat different
from the previous 1981 Commission. The success of such a system will rely on
the credibility and effectiveness of the detail. The World Bank’s head called
for gold to be a “value anchor” to paper currencies. We believe
that this may well be the direction to be followed. But there are a very
large number of events that have to take place for this to happen. We will be
producing a few articles on this in our weekly newsletters and on our website
[So subscribe through www.GoldForecaster.com or www.SilverForecaster.com]. We have foreseen this direction being followed since 2005. This is
why the gold price rise should not be categorized simply as a
“bull” market!
Regards,
Julian D.W. Phillips
for the Gold & Silver Forecasters
Global Gold Price (1
ounce)
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Today
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1 day ago
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Franc
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Sf1,558.97
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Sf1,553.41
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US
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$1,698.22
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$1,691.80
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EU
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1,269.22
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€1,262.34
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India
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Rs.88,434.81
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Rs.88,591.11
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