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The gold held around
$1,700 at the close in New York, Asia and in London. The morning Fix in
London set it at $1,699.50 and in the euro at €1,285.358 just €2
higher, while the euro stood at €1: $1.3222 almost the same as
yesterday. Ahead of New York’s opening it stood at $1,701 and in the
euro €1,286.64 while the euro was at €1: $1.3220.
Silver ran ahead fast to
open in London just under $34 in London. Ahead of New York’s opening it
stood at $33.89.
Gold (very
short-term)
Gold is
expected to continue to consolidate, in New York today.
Silver (very
short-term)
Silver will
continue to consolidate, in New York today.
Price Drivers
85% acceptance of the horrific write down of Greece’s debt and
Greece receives its bailout. That is until the next tranche is due, when E.U.
leaders examine if Greece has done what it has done. In return Greece writes
off over €100 billion of its debt. Will it get more? It all depends on
the revenue that the Greek government can pull from Greek citizens. With Greeks
tending to be allergic to paying taxes and with the last quarter showing a
contraction of GDP at 7% [that is until the end of last year], we expect that
economy to cross the 10% contraction line, making it a depression. Of course,
government revenue is shrinking in line with this. We feel that their
survival is reliant on an expansion of the economy. As a result, the euro did
not jump at the news but held its level of yesterday. So did gold and silver
in both the euro and the dollar. Recent history has shown that gold and
silver falls on bad news from Greece and rises when the news appears good.
But this is shortly to change as we mentioned earlier this week. Attention is
now turning to the global scene which in line with the Fed’s view is
uncertain. But gold will not reflect the overall global economic situation
but mainly the emerging world’s economic situation. After all, this is
where demand for gold and silver is coming from, mainly.
China meanwhile is seeing the impact of uncertainty on its exports,
but is in a position to stimulate local growth and begin the inevitable
change to self-sufficiency and becoming one of the global economy’s
driving forces. The control the Chinese government has over its economy is
considerably more than we see in the west. So we feel that Chinese gold
demand will continue to grow irrespective of the troubles experienced in the
developed world. Indeed, these troubles will continue to give a solid basis
for the case for gold. [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
|
$1,691.80
|
EU
|
1,269.22
|
€1,262.34
|
India
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Rs.88,434.81
|
Rs.88,591.11
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