Gold continued to rise from New York’s close through Asia’s
time and into London, where it was Fixed at the morning Fix at $1,527 and in
the euro at €1,084.13 while the dollar’s rally appears to be
slowing down. The big
question is, ‘have gold and silver stopped falling – which way
next?’ [A question we will address in the next issue of the Gold
Forecaster and Silver Forecaster].
Ahead of New
York’s opening the gold price in the dollar stood at $1,527.30 up $5
and in the euro at a record €1,085.35. The dollar stood at €1:
difficult to tell which currency is weakening, the dollar or the euro, as
they are both weakening, with one weakening faster than the other some days
and the other on other days.
Right now it’s the euro that’s tumbling fastest.
slow off the mark in the last few days, silver is going through the
‘shunt effect’ and rising faster than gold. Silver is now standing at $37.34
up from $35.95 on yesterday.
It has risen almost 10% in the last week.
Gold - Very Short-term
Gold prices should show a positive bias
today, in New York.
Silver – Very Short-term
Silver should continue to show a positive
bias today, in New York.
Silver & Gold Price Drivers
Both the Silver Trust [the main silver Exchange Traded Fund] and the World Gold
Council’s gold exchange traded fund in the U.S.A. [SPDR] are seeing
U.S. investment buyers again.
They have been absent or selling during the last sell-off that saw
gold fall from $1,578 to below $1,500 and silver plummet from $50 to $32 in
the last very rapid correction. All investors are anxious
to know what next? We can only
suggest to investors that the more thoroughly they do their research the less
of a gamble their investment will be.
- Investors need to
understand future potential direction of these two precious metals, as well
as the volatility they may see in each one.
- They need to understand the future of the currency they price precious
metals in. After all if
currencies are not good measures of how the metal is performing but are
decaying currencies, then they will see the precious metal prices clouded by
If an investor
doesn’t do his homework he will look only to how much money he is
making or losing with his nerves paying the price. The competent investor looks at
the value his investment offers, how long it will take to go to the price the
investor expects [as a result of proper research] and when to exit. His eyes are on the
investment, not on his profits. Gold, in particular, is driven
by a broad spectrum on investment facets, from demand and supply, to
currencies, to macro-economics through to the actions
of major and minor investors, overall, and specifically to global
government’s actions on gold. In silver the task is a little
easier but is slowly moving to the complexity that attends gold. For a taste of these
complexities follow the gold prices below with us in the days ahead:
In the U.S. -
Today: $1,526.15: 1 ounce of gold.
Yesterday: $1,518.00: 1
ounce of gold.
In the E.U. -
Today: €1,086.34: 1 ounce of gold. Yesterday: €1,079.14: 1 ounce of gold.
– Today: Rs. 69,226.16: 1 ounce of gold. Yesterday: Rs.
68,643.96: 1 ounce of gold.
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