In the euro the gold price
is barely moving at €1,055.06 up just 40 cents from yesterday’s price. Again
the gold price is about
the dollar not about gold.
The dollar is on the wane
We are now in the seasonal ‘doldrums’ for the gold market and yet the gold price has not fallen. New York closed
with gold at $1,545 and
London is moving it up in line with the dollar’s decline. The dollar continued
to want to weaken and stood at €1: $1.4677 in London’s morning.
In the euro gold was Fixed at €1,055.78 still at the bottom of its trading range.
In the dollar gold Fixed at
$1,548.70 down 60 cents on yesterday’s Fix.
Just after New York’s opening the gold price was higher
at $1,546.15 down almost
$2. The dollar stood at $1.4675 and at €1,054.21 down nearly
Silver rose over 30 cents in London to stand at $37.35 after Fixing at $37.41, as New York opened.
Gold - Very
Gold prices should have a positive bias today in New York.
– Very Short-term
Silver should favor the upside in New York today.
Gold Price Drivers
At the end of the marriage season in India, farmers there move onto the land to ready
themselves for the next crop.
The arrival of the monsoon
tells them what lies ahead.
So far in June the rains
have been good. The crop is off to a good start.
But this year farmers, who in the past were responsible
for 70% of the gold bought these,
will not have anywhere near the impact they have had in the past. The rapid
development of India has seen such enormous
growth in the Indian
middle classes that gold demand
from these newly rich members
of society is spreading demand for gold right across
the year. The biggest
effect of these developments has not only been
the taking away of the
‘gold seasons’ but the rise in demand from India irrespective
of the price of gold. Rising
prices have pushed poorer Indian investors to silver from gold as that gains more of
a wealth preserving precious metal as it continues to follow the gold
price’s moves to higher
Higher prices are not likely to deter Indian demand which will only see
a lower in tonnage demand
as the quantities investors
buy is reduced through higher prices. But as this
happens smaller investors will swell the ranks of silver investors. However,
demand is so strong that
record tonnages of both gold and silver are finding their way into
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Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,291.03: 1 ounce of gold.
1,293.57: 1 ounce of gold.
U.S. $ -
Today: $1,546.15: 1 ounce
of gold. Friday: $1,546.50: 1
ounce of gold.
Today: €1,054.21: 1 ounce
€1,058.49: 1 ounce of gold.
India –Today: Rs. 69,095.90: 1 ounce of gold.
Friday: Rs.69,247.63: 1 ounce
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