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New York gave us the low
at $1,642.80 before Asia stated the bounce taking it up to $1,648, while the
euro continued to struggle at €1: $1.3046, while the dollar
strengthened against most currencies. The morning Fix in London was set at $1,646.75
and in the euro at €1,262.26, while the euro stood at €1: 3046.
Ahead of New York’s opening it stood at $1,647 and in the euro
€1,262.65 while the euro was at €1: $1.3045.
Silver stood a $1 lower at
$32.18 in London. Ahead of New York’s opening it stood at $32.32.
Gold (very
short-term)
Gold should
consolidate at these lower levels, in New York today.
Silver (very
short-term)
Silver should
consolidate at these lower levels, in New York today.
Price Drivers
Today is the ides of March, the day Julius Caesar was assassinated.
Shakespeare warned in the play about that day, “beware the ides of
March!”
The markets have decided that it is time to take a positive view of
the recovery as the Fed implied that more quantitative easing was not
necessary at this stage. Investors should be cautious, asking themselves, is
there really such a cause for optimism. We glance back to the Greek drama and
remember that markets jumped when they believed that a banking crisis was not
going to happen. That allowed investors to broaden their choices in the face
of lower risks to themselves [not the market per se] and they ventured into
the more likely investments to blossom in a better environment. These
included precious metals.
Yesterday we pointed out that gold did best in an economic
‘growth’ environment. So beware of market exuberance! The factors
that drove gold and silver higher have not changed. But before you act, ask
yourself, is the gold price now bouncing or consolidating?
The dollar rose against most currencies reflecting the positive tone,
while its trade deficit is climbing yet again. When one sees the dollar rise
against other currencies the wrong word is used, saying the dollar is strong.
Not so! The dollar is stronger than other currencies, but not strong.
Strength implies that the fundamentals for the dollar have improved.
To make the most of these opportunities, investors should take a long look at
the deeper picture of the fundamentals before rushing in, where angels fear
to tread. 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].
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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