The gold price fell
heavily at one point hitting the $1,660 area at one point before closing in
New York at $1,674.10. Both Asia and London held it in that area before the
morning Fix in London set it at a higher $1,682.50 and in the euro at
1€,278.69 while the euro stood at €1: $1.3158. Thereafter the
tone was better and gold held at that area despite traders trying to pull it
down again. Ahead of New York’s opening it stood at $1,681.15 and in
the euro €1,279.90 while the euro was at €1: $1.3135.
Silver is again showing
fortitude as it traded in London at the $33.17 area. Ahead of New
York’s opening it stood at $33.45.
Gold (very
short-term)
Gold is
expected to consolidate with a weaker bias, in New York today.
Silver (very
short-term)
Silver will
consolidate, in New York today.
Price Drivers
World growth is on the mind of most markets as they weaken in the face
of poor economic data. Australia’s growth was announced as plus 0.4% of
GDP a disappointing figure for one of the most vibrant economies in the
world.
A look at the strong currencies of such currencies tells us that
non-commodity related industries in such countries are suffering badly and
bringing overall growth down enormously. In this global world, national
economies are finding that the global economy is having a distinctly
detrimental effect. Each sector must now compete globally not just locally.
Each currency must maintain international competitiveness, which the
Australian dollar is not. Hence, the Japanese and Swiss interventions, to
weaken their currencies. The net result is that money itself is being
cheapened worldwide, in a race to keep economies thriving. Over time little
could be more gold and silver positive.
The priority levels for governments in the developed world are
therefore to:
· Attract votes through policies, no matter what the
consequences.
· Try to ensure economies stay healthy to attract
votes.
· Cheapen money through its over-issuance.
· Keep exchange rates low to keep international
competitiveness.
· Use the global economy for national interests, not
global ones.
The net result has been and will be to lower the value of currencies
continuously. Of course this must be done at a rate that consumers can absorb
without revolting. Precious metals then climb continuously over time.
Pullbacks are therefore opportunities. [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)
|
|
Today
|
1 day ago
|
Franc
|
Sf1,558.97
|
Sf1,553.41
|
US
|
$1,698.22
|
$1,691.80
|
EU
|
1,269.22
|
€1,262.34
|
India
|
Rs.88,434.81
|
Rs.88,591.11
|
|