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The gold price in New York
dropped as far down as $1,677 before closing at $1,782.3, over $40 down. Asia
lifted the gold price back to $1,690 ahead of London’s opening.
At the Fix in London set
it at $1,697.50 and in the euro at €1,253.137 while the euro stood at
€1: $1.3546. Ahead of New York’s opening the euro stood at
€1: $1.3534, the dollar price of gold at $1,695.50 making the price of
gold in the euro €1,252.77. The silver price ahead of New York’s
opening stood at $31.77.
Gold (very
short-term)
The gold price
should consolidate at these lower levels in New York today.
Silver (very
short-term)
The silver
price should consolidate at these lower levels in New York today.
Price Drivers
The super-committee announced their failure to do
the job they were given and automatic spending cuts are scheduled for next
year and beyond, in defense spending and on general spending. Add to this the
worsening situation for Spain as they go to the markets for money today
alongside a potential banking crisis developing and we see good cause why
investors are holding back from the precious metals markets while prices are
driven down. France has now joined the ranks of E.U. members having to pay
higher yields to get funds in. We are producing an article on, “Will
the Gold Price fall to $1,500” shortly and subscribers will receive our
full views on what we expect of the gold price in the days to come. To this, please subscribe through www.GoldForecaster.com or www.SilverForecaster.com.
We are seeing shades of 2007 today as the
fundamental structures that we have taken as effective for so long,
underperform. The process of deleveraging and investor retreats is temporary.
Once achieved fundamentals return to dictate prices of everything. With the
developed world going through what history defines as the “Decline and
Fall” process in the coming years, it is easy to take ones eyes off the ‘big’ picture and become
mesmerized by the urgency of the immediate picture. For example, again,
please note just how much gold investors have bought in the last couple of
weeks in the SPDR gold ETF, including yesterday as prices fell.
We have discussed central bank gold buying as prices
‘dip’. This was well illustrated by the announcement that Russia
had bought a good chunk of gold in October. As stock became available they
took the offer totaling 18.6 tonnes. Of course they
are not so price sensitive, but volume sensitive. With such buyers cleaning
out the market, when buyers return, what will be available?
Please note the Indian Rupee continues to fall heavily, making Rupee
prices of gold rise strongly.
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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Sf1,546.64
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Sf1,567.71
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US
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$1,695.50
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$1,703.85
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EU
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1,252.77
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€1,268.22
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India
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Rs.88,632.26
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Rs.88,864.30
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