Gold & Silver Market Morning, October 25, 2011

Gold is holding at yesterday’s levels with the Gold Fixing dominating the gold price. After yesterday’s Fixing in the morning at $1,651 and yesterday afternoon’s Fixing at $1,652 this morning the gold price was Fixed at $1,656.25 and in the euro at €1,187.957, as the euro continued to rise to €1: $1.3941. The euro slipped from that level ahead of New York’s opening to €1: $1.3911. The gold price remained steady at $1.656.25 too.

The silver price was steady and traded to $31.71 after London’s Fixing at $32.00 today. Ahead of New York’s opening silver stood at $31.73.

Gold _{(very short-term)}

The gold price should have a steady bias, today in New York.

Silver _{(very short-term)}

The silver price should have a steady bias, in New York, today.

Price Drivers

Gold is marking time today waiting for the news of the resolution to the E.U. crisis. The markets continue to take a positive view of the situation as evidenced by the calm positive tone in the market place. There is last minute haggling by the banks to lower the extent of the haircut they must take, but that is only to be expected. They are not going to jeopardize the rescue on this issue or they could face more than a haircut. The lawmakers have the deciding hand. We fully expect a global banking crisis if they do fail.

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.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters