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Gold Today –New York
closed at $1,748.40 up nearly $20 on last week. This morning, Asian and
London dealers held the price at yesterday’s levels of $1,748 ahead of
London’s opening. It was Fixed at $1,747.25 down $3.25 on yesterday
afternoon. In the euro it was Fixed at €1,349.540 almost the same as
yesterday in very thin trading, while the euro was slightly stronger at
€1: $1.2947. Ahead of New York’s opening, gold was almost the
same at $1,746.75 and in the euro at €1,348.63.
Silver Today – New
York closed at $34.08 and slipped slightly. It then traded at $34.07 ahead of
New York’s opening.
Gold (very short-term)
Gold is
expected to consolidate, moved by the euro, with a weaker bias, in New York
today.
Silver (very
short-term)
Silver is
expected to consolidate, moved by the euro, with a weaker bias, in New York
today.
Price Drivers
Gold & Silver – At last Greece
has its bailout and it government debt level is deemed to be sustainable, so
E.U. leaders believe. Some media analysts expect a need to arise for a
further debt write down in the future. A message coming through is that
Greece must be seen to implement austerity measures, not simply to agree to
do so. Our, “what if” is, what if the Greek economy continues to
shrink? The Eurozone is. Nevertheless it was thought that the euro would
strengthen and gold would rise in the dollar, but it hasn’t. We have
rarely believed that the €: $ exchange rate
reflected real values, simply the sum total on capital and trade movements at
that time. This rate is not designed to reflect public opinion even when
positive.
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Likewise the gold price should not be static in the euro. From the
technical point of view we are watching to see if overhead resistance is
turning back the gold price or not. The next few days will tell us which way
it is headed from now on.
Indian demand is recovering to former high levels. Yes it is down from
969 tonnes last year but now sits over an expected
800 tonnes. Fears that it would drop to 640 tonnes this year have been corrected by lower Rupee
prices and high festival demand. We would have been most surprised if it
hadn’t because Indian demand is endemic to Indian culture more than it
is in any country east of Greece, except China. It is a deep feature of
Indian family life and tradition. Meanwhile China’s demand is
continuing to rise and is expected to go over 1,000 tonnes
in the next few years. Can the gold supply meet this demand?
Silver – The silver price is also still being moved as a counter to the dollar
and riding tandem with the euro.
Regards,
Julian D.W. Phillips
for the Gold & Silver Forecasters
Global
Gold Price (1 ounce)
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Today
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3 days ago
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Franc
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Sf1,603.74
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Sf1,596.84
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US
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$1,723.25
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$1,719.25
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EU
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1,328.69
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€1,322.25
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India
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Rs.92,542.83
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Rs.92,607.40
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