Gold Today – New York closed at $1,558.60 down $23 and held there in Asia as the selling seemed to have stopped for the moment. The euro stood at €1: $1.2863. This morning in London, gold Fixed at $1,559.00 down $5 and in the euro at €1,213.607 the same as yesterday. Ahead of New York’s opening it started to bounce and stood at $1,559.55 and in the euro, which also continued to slip, €1,212.90 while the euro was at €1: $1.2858.

Silver Today - Silver closed at $28.23 in New York and rose in London opened at $28.32. Ahead of New York’s opening it stood at $28.33.

Gold _{(very short-term)}

Gold will look for a ‘floor’ level at current levels, today in New York.

Silver _{(very short-term)}

Silver will look for a ‘floor’ level at current levels, today in New York today.

Price Drivers

Gold – Short-term traders, keenly aware that the short-term Technical picture is signaling that downside risks have shrunk to very small levels. Consequently, we believe that a search for a ‘floor’ is now underway in the short-term. Let’s face it the news on the Eurozone could not be worse, so what comes next? In the minds of everybody Greece is likely to exit the Eurozone and possibly the euro. Spain is more than likely to ask for a bailout. Spain, Portugal, Ireland Greece and possibly Italy could exit? Will this mean that the E.U. collapses? Or with these out of the way will it and the euro be much stronger? With gold moving with the euro and now steady in the euro itself, will the news get better and take gold with it? These are questions that face the gold market and the silver market too, simply because they have been all moving the same way.

Meanwhile, the Rupee continues at weak levels, but the gold price in the Rupee is now at a recent low. We have not seen Indian demand in any significant quantity so far. In China, the People’s bank of China is easing the reserve requirement on banks to facilitate lending and to boost growth.

We are of the opinion that markets moods, including those in the gold and silver market are on the brink of a short-term change.

Silver – After the fall to $28.30 the silver price is stabilizing at these levels. Is a ‘floor’ now being seen? While silver is not considered by central banks as a monetary metal, it is moving as though it is, alongside gold. So we should keep an eye on these factors when gauging where silver is headed. With the Eurozone now in overall recession and talk that the U.S. may well slip into a mild one itself, we do see politicians and central banks turning back to monetary easing, which will benefit gold and silver! [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]

Regards,

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