Gold Today – Gold closed in New York at $1,588.00 after rising to $1.600 at it daily peak on Friday. London’s morning Fix today was set at $1,584.00 and in the euro close to its recent high at €1,300.172, while the euro stood at €1: $1.2183 and was still falling. Ahead of New York’s opening gold stood at $1,585.00 in the middle and in the euro at €1,299.81.

Silver Today – Silver closed on Friday in New York at $27.25. Ahead of New York’s opening at $27.10 and slipping with the euro.

Gold _{(very short-term)}

Gold should have a stronger bias today, in New York.

Silver _{(very short-term)}

Silver should have a stronger bias today, in New York.

Price Drivers

Gold & Silver – The euro continues to fall below €1: $1.22 at 1: €1: $1.2193 today, but gold is rising in the euro at the moment. The intransigence of Germany, in demanding oversight of those who receive bailouts is not wavering. Each nation in the Eurozone remains a sovereign nation separate from fellow members. While there is currency union, that concept of Europe being a united Europe is not the case. It is this structural fault that has prevented the Eurozone from getting out of its crisis. This is not going to change. The most pertinent question for the weaker members is, “are the benefits of the Eurozone greater than leaving it.” While national leaders are moving to pay the cost of remaining in the Eurozone, the voters in the weaker nations are paying a heavy price. In democracies in crisis, social unrest costs governments their power. This financial climate is good for gold and silver, whether it becomes inflationary of deflationary.

It is easy to be distracted by the short-term when deciding where gold and silver are concerned, so it is as well to remind ourselves that gold rises when uncertainty and instability lead to a weakening of the monetary system and currencies. Currencies are strictly national instruments, with the exception of the Eurozone and the euro. In the case of the euro, the world’s second most important currency, the disunity of the last three years demonstrates what we say as it slips in value by the day.

Short-term the gold and silver prices appear to be directionless hovering just below $1,600 at the moment. To us it is like the changing of the tide. The moment we are in is when it is neither an ebb or a flowing tide. When the new direction dominates it becomes crystal clear quickly. Watch the narrowing of trading ranges to see where we are going next. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]

Silver – Silver remains ready to rise when either gold or the euro do.

Regards,

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