gold rose to the higher $1,530 area. In the euro it
is racing back to the previous peaks in the
euro is sitting at Friday’s levels at €1: $1,4229 ahead of London’s Fix. At the Fix in London, gold in
the dollar was $1,537.00 and in the euro at €1,079.66.
Ahead of New York’s opening gold was trading at $1,535.75. In the euro, gold stood at €1,076.59 up
€6. The euro was barely changed
at €1: $1.4265.
Silver was slightly
weaker at $35.57 ahead of New York’s opening barely changed on the entire
performance of last week. The Fix in
London and was at $35.58
up only 20 cents on last week.
- Very Short-term
Dollar gold prices should have a stronger bias today in New York, with the
gold price continuing to rise in the euro.
Silver – Very
Dollar silver should show a neutral to stronger bias in New York today.
Silver & Gold Price Drivers
With the Greek Prime Minister asking for a vote of confidence
tomorrow, from his Parliament, for more austerity measures, after the E.U. finance Ministers
demanded more of them yesterday, the markets took a dim view
of Greece’s prospects of resolving
their debt crisis.
Friday saw a
feeling that they might, but with nationwide protests, including a strike by electricity workers, today, a pall has been thrown over hopes for a resolution.
It all now hinges
on the vote of confidence in Papandreou.
If he fails to get this, then default is almost certain. Default, as is
now becoming clearer, could unravel the Eurozone and the
euro. The E.U. Finance Ministers will pay the needed money across, if only for that reason. But this
is just another bandage on the wound,
not a cure. The healing of the wound will come from the long-term implementation of the austerity measures and the loan repayments by Greece.
At the moment all of this
gold-positive. If the vote
of confidence is passed then Greece will
be a lesser
driver of gold.
It is easy to be distracted
by developed world political
and financial issues from
the real forces behind the gold price. It is well to remember that more than 50% of gold demand comes from the emerging world and less than 10% from the U.S.A.
markets are moving into a high risk
area, with heightened volatility tomorrow. The markets
[all markets, not just
gold and silver] are no place for the nervous until the Greek crisis is settled one way or the other.
Prices in different currencies which highlight currency moves [We add the Swiss
Franc – Today: Sf1,298.02:
1 ounce of gold.
1,295.53: 1 ounce of gold.
U.S. $ -
Today: $1,535.75: 1 ounce
of gold. Friday: $1,528.65: 1
ounce of gold.
Today: €1,076.59: 1 ounce
€1,070.71: 1 ounce of gold.
India –Today: Rs. 69,104.14: 1 ounce of gold.
Friday: Rs.68,604.28: 1 ounce
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