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Europe’s debt crisis has seen
gold prices climb to new record highs in euros and
British pounds at EUR 1,087.80/oz and GBP 944.93/oz respectively. Contagion
concerns are mounting due to the failure of the ECB, the IMF and respective
governments to tackle the sovereign debt crisis.
Cross Currency Rates
The scale of the debt crisis
effecting Greece, Ireland, Italy, Belgium, Portugal and Spain is leading to
growing concerns of a knock on deleterious impact on European banks and the
global banking system.
The real risk of contagion will
likely lead to increasing safe haven demand for gold.
Gold should also be supported today
by the OECD’s warning regarding the U.S. and Japan’s very poor
fiscal situations and their lack of credible plans to tackle high and
spiraling budget deficits.
Gold Bullion in US
Dollars – 30 Days (Tick)
Gold has broken out in euros and pounds and this
strength is likely to again be seen in dollar terms with the record nominal
high of $1,577.77 likely to be challenged again.
There is good support at $1,460/oz
(see chart above) with strong physical demand seen internationally.
Gold in dollar terms is challenging
resistance at $1,527/oz and a break out close above this level could see a
quick move to challenge resistance at the record nominal high of $1,577.57/oz
and the psychological level of $1,600/oz.
Gold Bullion in US
Dollars – 20 Days (Tick)
Long term the real record high of
$2,400/oz from 1980 remains likely to be achieved.
Gold bears and gold bubble
callers’ predictions of falling gold prices are again likely to be
proved badly wrong. Rather than continually attempting to predict the future
and predict the top of the market they would better serve their readers by
properly analyzing the real fundamentals driving the market and informing
people of the importance of having at least some allocation to gold –
especially from a financial insurance and diversification point of view.
SILVER
Silver’s fundamentals remain
even stronger than gold’s and the recent paper driven sell off due to a
series of margin calls and heavy selling on the COMEX appears to be over.
Silver has support at the recent low
of $32.31/oz. There are continuing calls by knowledgeable silver analysts for
silver to rise above $100/oz which suggests that silver may rise above its
nominal high of $50/oz sooner than the silver cynics expect.
Silver Bullion in US
Dollars – 10 Days (Tick)
GOLD
Gold is trading at $1,526.40/oz,
€1,085.48/oz and £941.35oz.
SILVER
Silver is trading at $37.15/oz,
€26.42/oz and £22.91/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,767.25oz,
palladium at $740/oz and rhodium at $1875/oz.
NEWS
(Reuters) -- Gold
off 3-week high, euro-priced bullion hits record
http://www.reuters.com/article/2011/05/25/bus...E74F62H20110525
(Bloomberg) --
Gold Declines as Advance to Three-Week High Prompts
http://www.bloomberg.com/news/2011-05-25/g...lver-drops.html
COMMENTARY
(King World News)
-- Silver's tightness could take it to $125, Embry tells King World News
target="_blank"
http://kingworldnews.com/kingworldnews/...for_%24125.html
(Barrons) -- Gold, Silver Find A Perfect Storm < target="_blank"br>
http://blogs.barrons.com/focusonfund...rm/?mod=BOLBlog
(Financial Times)
-- In defence of gloomy columnists
http://www.ft.com/intl/cms/s/0/d9...l#axzz1NLpV1yCA
(The Daily
Reckoning) -- Silver…Still Precious
http://www.dailyreckoning.com....ous/2011/05/25/
(SilverSeek) -- Silver More Explosive than Gold http://news.silverseek.com/.../1306285200.php
Mark O’Byrne
Goldcore
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