York closed with gold at $1,542 and in the euro to €1,072 with the dollar at €1:
as London opened we saw gold begin to rise slowly and the dollar fall to $1.4472.
Gold was then Fixed at $1,540.75 and at €1,068.26 at the time when the dollar stood at €1: $1.4470. Again we point to the weakness of the
dollar at a time when the Eurozone sees its debt crisis
Just after New York’s opening the gold price was steady at
$1,539.15 and in the euro at €1,065.16. The dollar stood
at €1: $1.4450.
Silver fell to Fix in London this morning at $37.22 and held just below
that as New York opened.
- Very Short-term
Gold prices should show a stronger bias today, in New York.
Silver – Very
Silver should continue to show a stronger
bias today, in New
Silver & Gold Price Drivers
As the dollar weakens in
the face of a worsening Eurozone
crisis, we note that Greece is
soon to get its next tranche of its bailout. This will
happen, not because of what Greece will
give in return, but because
both the banks and the
E.U. cannot afford a default of Greece for their own sake. Greeks
will weigh up what is best for them by weighing the costs and benefits of a default
against bowing to the proposals that will be put to them soon by the E.U. The Greek
government will then act in the interests of Greece, not necessarily the E.U. Unless the
restructured bailout favors Greece more than a default will; Greece will reject
the proposal, at the voter’s behest. Greece
is holding the strongest
hand. This is already weakening
the position of the Eurozone and the euro. So why
is the dollar weaker?
The structural shape of
the U.S. favors a weakening
dollar on foreign exchanges. A U.S. moving
back to recession will favor more, cheaper imports
more than it will gain exports. The rising
deficit and debt ‘ceiling’ crisis is bad for the dollar and for
U.S. credibility overseas. There is a political desire it seems, for a weaker dollar, as that suits U.S. interests more than a strong dollar does. A
combination of these factors will see the dollar fall. Even without a double-dip recession the U.S. is moving to very troubled waters. ‘Stagflation’ looks
to be the most likely next condition in the
U.S. as energy and food
inflation continue to undermine the U.S.
consumer. Deflation, in the light of recent
economic numbers is back on the stage again. In these
conditions, gold and silver become
desired investments. Certainly
U.S. Stock Exchanges are warning of a further downturn and Treasuries are rising for the same reasons they do ahead of a downturn.
But there are different
disturbing prospects for the U.S. Treasury market in the short to
We cover the implications for gold in macro-economic
and currency events in
all the issues of the Gold Forecaster and the Silver Forecaster for subscribers.
[The Gold Forecaster
and Silver Forecaster are
a “must-read” for all who want to understand
why the gold and silver prices are moving as they are and why.] Subscribe at www.GoldForecaster.com
or for silver at www.SilverForecaster.com].
Prices in different currencies which highlight currency moves [We add the Swiss
Franc – Today: 1,295.27 ounce
of gold. Yesterday: 1,309.61: 1 ounce of gold.
U.S. $ -
Today: $1,539.15: 1 ounce
of gold. Yesterday: $1,538.20: 1 ounce of gold.
Today: €1,065.16: 1 ounce
of gold. Yesterday: €1,066.90: 1 ounce of gold.
India –Today: Rs. 68,984.70: 1 ounce of gold. Yesterday: Rs.69,282.78: 1 ounce of gold.
Please subscribe to www.GoldForecaster.com for the entire