|
The volatility we warned
about in the newsletters came with a bang one day ahead of schedule and gold
vaulted from yesterday’s $1,652 to $1,700 in late U.S. trade. Asia then
London continued to take it higher to $1,715 just after London’s
opening. This morning the gold price was Fixed at $1,713.00 and in the euro
at €1,229.543, as the euro remained steady at €1: $1.3936. The
euro was steady at that level ahead of New York’s opening at €1:
$1.3934 with gold holding the $1,714.30 level and in the euro at
€1,229.40.
The silver price roared
over 5% overnight to open around $33.25 and traded thereafter to $33.75 up $2
on yesterday, ahead of New York’s opening.
Gold (very
short-term)
The gold price
should have a volatile but strong bias, today in New York.
Silver (very
short-term)
The silver
price should have a volatile but strong bias, in New York, today.
Price Drivers
An important lesson is
being learned today. In the financial world we assume that politicians will
appreciate and react to the critical items of importance in the financial
world. The cancellation of the Summit of E.U. leaders came through not as an
attempt by posturing politicians to make themselves the most important issue,
but to the financial world as a signal that the E.U. was failing to find
consensus on the proposed solutions. Aren’t we foolish, history shows
that politics dominates finances, even in a world revolving around finances
now!
It may be that with the
three main leaders in this crisis [Merkel, Sarkozy and Berlusconi] have
placed in mind their very future political careers [in view of the coming
elections] ahead of E.U. finances, a decision that will be clarified in the
days to come? Investors reacted speedily and precipitously and drove gold
back to the uptrend magnificently. Even in the U.S., investors bought over 6 tonnes of gold into the SPDR gold ETF yesterday.
We would like to emphasize
that the market actions are not due to short-term considerations [such as a
postponement of a Summit meeting] but to critical structural issues that will
change this world dramatically. 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.
All gold or silver
investors out there should keep their eyes firmly riveted to these markets in
the next few days! Note how the Indian Rupee is falling [nearly 20% in two
months] and its effect on their gold prices!
Regards,
Julian D.W. Phillips
for the Gold & Silver Forecasters
Global
Gold Price (1 ounce)
|
|
Today
|
1 day ago
|
Franc
|
Sf1,497.53
|
Sf1,458.61
|
US
|
$1,714.30
|
$1,656.00
|
EU
|
1,230.17
|
€1,189.91
|
India
|
Rs.84,865.56
|
Rs.81,846.97
|
|
|