New York closed yesterday at $1,638.20. The euro was steady at €1: $1.3151. Today, gold Fixed it at $1,638.75 and in the euro at €1,244.683, while the euro stood at €1: $1.3166. Ahead of New York’s opening it stood at $1,644.00 up $13 on yesterday and in the euro €1,248.48 while the euro was at €1: $1.3168.

Silver was$31.85 overnight. It Fixed at $30.86 in London. Ahead of New York’s opening it stood at $31.00.

Gold _{(very short-term)}

Gold should continue to consolidate with a stronger bias, in New York.

Silver _{(very short-term)}

Silver should continues to consolidate with a stronger bias, in New York.

Price Drivers

Just another week in the Eurozone:

· The Dutch cabinet resigned because it could not impose austerity cuts.

· France looks like turning from austerity to “reform and growth”.

· Spain continues to fight its shrinking economy.

· In Ireland, 75% of householders in the North of Ireland are refusing to pay the ‘household tax’ [and are emigrating rapidly].

· German manufacturing is shrinking at its fastest pace since 2009.

The net result is that the Eurozone is not exhibiting the sort of drive that rectifies problems. That’s why the mood is changing as voters demand growth in their economies. This requires fiscal spending. This means more debt or increases in the money supply, both of which lower the value of currencies which, eventually will reflect in the persistent rise in the gold price and the importance of gold in the monetary system. We are publishing Part V of our series “A return to the Gold Standard, or Gold behind currencies”. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]

Today is the Indian festival of Akshaya Tritiya which is a most auspicious day to buy gold on in India.

The recovery in the gold price at this point describes the underlying, non-price chasing support for precious metal prices. It is clear that we are getting close to the consolidation period before a strong move one way. This is a time to keep your finger on the pulse!

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters