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Gold started the day with
a fall to $1,620 from yesterday’s $1,651 level. The euro was a tad
stronger at 1€: $1.3763 ahead of the Fix, leaving gold in the euro at
€1,177.07. It then Fixed in London at $1,629.00 showing the underlying emerging
markets demand and in the euro at €1,180.179 while the euro stood at
€1: $1.3803. The euro rose slightly to €1: $1.3806 ahead of New
York’s opening, while gold slipped $1,621.00 and in the euro at
€1,174.13.
The silver price opened in
London at $31.07 and then rose to $30.78 ahead of New York’s opening.
Gold (very
short-term)
The gold
price should have a steady to weaker bias, today in New York.
Silver (very
short-term)
The
silver price should have a steady to weaker bias, in New York, today.
Price
Drivers
In a set of markets now awash with rumors of
solutions and breakdowns global markets today are taking a negative stance on
the possibility of a resolution to the Eurozone debt crisis. After 18 month
of indecision, poor leadership, discord and a general failure to handle the
debt crisis we are at an expectation deadline. We are hearing a cacophony of
objections to proposals, but little agreement. This is a recipe for failure.
The G-20 has called for finality at this
weekend’s E.U. conference. We believe there will be some form of
consensus, but will it convince the markets? The acid test is next week as
markets react to whatever is put forward.
All markets are on the defensive, including the
precious metal markets and stand ready to contract in the face of such
failures. Banks are talking of massive contractions and lower lending in the
next two years. This is deflationary. Such deflation will hit an already
deflated, developed world economy.
It is as though the developed world has become a
rudderless vessel in iceberg infested waters. The ‘batoning-down-the-hatches
process will engender new crises and leave markets in fear. Repeat: -Next week should be a week of fireworks in all
markets no matter what happens. Are
you ready for what lies ahead? We look at those factors and more on an
ongoing basis in our newsletters, so we ask you to please subscribe through www.GoldForecaster.com or www.SilverForecaster.com.
While demand for gold
remains strong on the physical side, buyers are not so concerned with prices.
There will be no chasing of prices, only volumes of physical gold. In the
belief that gold prices are headed to much higher
new heights, buyers are happy to let prices fall and give better entry points.
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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Sf1,451.60
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Sf1,484.81
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US
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$1,621.00
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$1,638.15
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EU
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1,174.13
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€1,198.35
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India
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Rs.80,737.95
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Rs.81,286.28
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