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New York lifted the price
of gold to $1,678 but Asia pulled it back to $1,672 where London held it
ahead of the morning Fix. The euro was a tad higher against the U.S. dollar
to €1: $1.3040 in London’s morning placing the euro gold price at
€1,282.21 down €8 on yesterday.
London Fixed the gold
price at $1,669.00 and in the euro at €1,282.169. The euro stood at
€1: $1.3017. Ahead of New York’s opening the gold price was
tending Higher at $1,670.00 with the euro at €1: $1.3010 almost the
same as yesterday, leaving the euro price of gold at €1,283.63.
Silver is consolidating at
$32.28 clinging onto gains made yesterday but off the top. Ahead of New
York’s opening silver stood at $32.15.
Gold (very
short-term)
Again, the gold
price should have a stronger bias in New York today.
Silver (very
short-term)
Again, the
silver price should have a stronger bias in New York today.
Price Drivers
When you bargain for a Persian carpet the process
can be an art and entertainment which all sides enjoy particularly when both
are happy with the conclusion. When it comes to the solvency of an individual
and creditors facing losses, there is no such pleasure. The debtor knows at a
certain point he has more to gain by going bust than satisfying creditors. In
the case of Greece’s creditors they stand to lose a great deal as well,
so the fact that the levels of write downs, the interest rate, price and maturity
of the new bonds to replace were not resolved last week, shows the tenuous
nature of these negotiations. Far from complete, these negotiations are set
to take around a week now that the E.U. has said only days remain before a
solution is reached. If they do not resolve this by then, Greece will
default. Some creditors do better in a default too. But the markets [in the
euro] blithely believe all will be well. Do you? Some traders have very large
short positions in the euro and have been closing their positions fearing a
volatile market, but few deeply believe the euro is out of its storm. If
Greece leaves the euro though, it will have every reason to strengthen,
unless a major banking crisis breaks out. Is it any wonder the gold price is rising? Are we in the calm before the storm?
With the debt crises on both sides of the Atlantic
is it any wonder that the World Gold Council has informed us that central
banks bought 450 tonnes of gold in 2011? Is it any
wonder that the signatories of the Central Bank Gold Agreement have stopped
selling gold, except for tiny amounts for sales as coins, after selling over
400 tonnes a year in the past? We will be covering
these subjects in our weekly newsletters and on our website [So subscribe through www.GoldForecaster.com or www.SilverForecaster.com]. We are also publishing
an article on what a workable monetary system, incorporating gold,
could have as its underlying principles.
Regards,
Julian D.W. Phillips
for the Gold & Silver Forecasters
Global Gold Price (1
ounce)
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Today
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1 day ago
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Franc
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Sf1,558.97
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Sf1,553.41
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US
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$1,698.22
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$1,691.80
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EU
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1,269.22
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€1,262.34
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India
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Rs.88,434.81
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Rs.88,591.11
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