New York closed on Friday at $1,642. The euro was steady at €1: $1.3140 where it stood as the week began. Today, gold Fixed it at $1,632.00 and in the euro at €1,240.970 down €6, while the euro stood at €1: $1.3151. Ahead of New York’s opening it stood at $1,631.00 barely changed on yesterday and in the euro €1,241.63 while the euro was at €1: $1.3136.

Silver was Fixed at $31.16 in London. Ahead of New York’s opening it stood at $31.12.

Gold _{(very short-term)}

Gold should continue to consolidate with a weaker bias, in New York.

Silver _{(very short-term)}

Silver should continues to consolidate with a weaker bias, in New York.

Price Drivers

The week started with Spain announcing that the last quarter saw a shrinking of growth by 0.4% for the second quarter, confirming Spain is in a recession now. Holland may see a collapse of their governments as they are unable to agree on austerity measures. Holland’s triple ‘A’ rating is now in danger. Sarkozy looks like losing the French election allowing in a more Socialist President.

It seems that the Eurozone financial crisis is now reaching the point where the voters are not going to support much more austerity. This is very bad for the future of the Eurozone. However, on a day when one would expect the euro to fall, it has held remarkably steady over the last week and today. Gold has fallen as the Eurozone crisis worsened. While the media would relate the two, we see the currently lower gold price as highlighting lower physical demand at present.

Italian bill and bond sales this week include a €2.5 billion bond sale tomorrow and Executive Board member Joerg Asmussen nevertheless, said in Washington that the ECB would “closely monitor the situation in the Spanish government bond market,” signaling the central bank may still act if rising yields threaten the ability of the euro area’s fourth-largest economy to borrow in financial markets. He also said markets shouldn’t automatically assume the ECB will offer more three-year loans.

So the crisis blusters on ignoring all the reassuring words but listening to the words of the I.M.F., the President of the Bundesbank and the U.S. Treasury Secretary, who are saying not enough is being done!

The next day may see an uptick in this as the Indian festival of Akshaya Tritiya, which starts tomorrow, 24^th April. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]

Regards,

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