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New York took the gold
price down to $1,722 but over the weekend, Asia lifted it to $1,732 ahead of
London’s opening. London held it at that level and took the euro to
€1: $1.3194. In London, gold Fixed at $1,729.50 and in the euro at €1,307.355.
The euro was stronger at €1: $1.3265 ahead of New York’s opening.
Gold followed the euro stronger ahead of New York moving up to $1,735 and in
the euro to €1.308.05.
Silver moved with gold and
opened in London at $33.48 almost the same as Friday in London. Ahead of New
York’s opening it stood at $33.60.
Gold (very
short-term)
Gold will
respond to the Greece debt tragedy, in New York today.
Silver (very
short-term)
Silver will
move with gold but show a steadier bias, in New York today.
Price Drivers
The gold price
is a bit like booze. Alcohol does well when people are happy or unhappy. Its
low point is in between the two states. In the developed world we are seeing
that in gold demand. In the developing world with three quarters of the
globe’s population, times are good. Not the best, but almost so, with
more and more people able to save and invest in precious metals each day.
That points the way for gold and silver. In the west investors are at the
mid-point with demand lower.
We are led to
believe that Greece has now done all that has been required of it at
government level to warrant the next tranche of bailout money from the E.U.
What the Greek government cannot guarantee is that the economic depression it
is now in won’t get worse and cut government cash flow back, to ensure
it can’t keep its most recent commitments. Tax evasion is a national
pastime there and with dreadful consumer conditions now prevailing, the cuts
to government income may be even more severe. So while it will get its next
bailout tranche on March 20, will it get the next one? We do expect markets
to take a positive posture on the Greek situation, despite underlying
skepticism. What is really needed in Europe is economic growth that is
sustainable. The global economy is showing signs of stress which reduces its
economic prospects.
But the markets
are likely to respond to the positive aspect of this news and cause the euro
to rise again lifting gold and silver. But by how
much, will reflect the opinion of global markets on the overall situation,
going forward.
Meanwhile Asia
looks through its own perspectives, which don’t include Greece. They
took it up $10 overnight, but gold remains in a tightening trading range. The
market’s view on Greece will dictate the short-term movements in gold
and silver, not their long-term moves. [To get more of the right perspectives on the gold
and silver markets and where gold and silver prices are going, subscribe through www.GoldForecaster.com or www.SilverForecaster.com].
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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Sf1,558.97
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Sf1,553.41
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US
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$1,698.22
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$1,691.80
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EU
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1,269.22
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€1,262.34
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India
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Rs.88,434.81
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Rs.88,591.11
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