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New York gave us the
strong move we forecast yesterday and it was down to close at $1,670 in New
York. London and Asia took it down further to the morning Fix in London which
was set at $1,662.00 and in the euro at €1,271.614 down €20,
while the euro stood at €1: 3070. Ahead of New York’s opening it
stood at $1,648 and in the euro €1,293.11 while the euro was at
€1: $1.3053.
Silver stood at slightly
lower levels at $33.03 in London. Ahead of New York’s opening it stood
at $32.76.
Gold (very
short-term)
Gold is soon to
look for a ‘floor’, in New York today.
Silver (very
short-term)
Silver is going
to look for a ‘floor’, in New York today.
Price Drivers
The euro continues to slip, now back down to the 1€: $1.30 level
and with Spain now coming back onto the screen alongside Portugal, we find it
difficult to see why the euro should strengthen. But the fall in the gold
price of $40 was 2.5% whereas the fall in the euro was only less than 1%. So
why did the gold price fall? The technical picture as we forecast yesterday
pointed strongly one way or the other. Traders in New York once again saw the
opportunity to hit the gold price and ‘stop-loss orders were triggered
and the trading crowd either ran for cover or went short. But more
significantly, sellers appeared in London and were not met by buyers. Where
do the charts now point? We have just produced an
article called, “What’s driving the gold & silver
prices”, which gives a fuller picture than just the day’s moves. [To get more of the
right perspectives on the gold and silver markets and where gold and silver
prices are going, subscribe through www.GoldForecaster.com or www.SilverForecaster.com].
If you were down at the beach recently, you will remember how the waves
went in cycles with about on-in-7 of the waves
going back much further or rising up the beach much further despite the
direction of the tide. It was simply the moment that that particular wave
went higher. We would like to attribute so much more to why it went that way
but then have to accept the mundane reason that it was just that moment that
conditions were right for in. The same is true of yesterday’s move. If
this reasoning is unacceptable to investors they must ask themselves did
anything fundamental change yesterday? The fall in the gold price in the
Indian Rupee has been very large and will bring buyers from there into the
gold market.
If they point to better economic performance numbers, then investors
must ask, “Does improved economic performance bode well for all and bad
for the gold & silver prices”. The biggest percentage rises were
from 2005 to 2007 when economic prospects looked wonderful. So no we do not
accept that a good recovery is bad for gold.
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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