Gold Today In New York the gold price rose $5.50 to $1,673.50 yesterday. In Asia on Monday it began to recover a little more to $1,677 and then Fixed at $1,678.00 up $14 and in the euro at 1,240.02 up nearly 14, while the euro was $1.3532. Ahead ofNew Yorks opening, gold was $1,680.65 and in the euro at 1,242.03.
Silver Today Silver closed at $31.71 yesterday. Ahead of New Yorks opening silver stood at $32.02.
Gold (very short-term)
We expect gold soon move strongly one way or the other, in New York today.
Silver (very short-term)
We expect silver to soon move strongly one way or the other, in New York today.
Gold & Silver
The Eurozone crisis raised its ugly head again as Italian & Spanish yields rose sharply on the back of political news. In Spain accusations of back-handers muddied the Prime Minister Rajoys image and in Italy, Berlusconi moved ahead in the race for the top by promising Tax cuts if he gets in. The unacceptable face of Latin politics appears unconcerned at the collateral damage they may cause their countries. The euro weakened half a cent on the stories, but this may just n=be a short-term move before continuing higher.
Meanwhile the Technical picture for gold and silver is improving at the moment. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com].
We are hearing of reports that many commentators are expressing the view that the bull market in gold is finishing because of the turnaround in economic growth for the better. This overlooks the fact that gold began to rise shortly after the turn of the century and rose while the U.S. economy was going full pelt. After a pause and 20% retreat in 2007/8 it then saw a continuation of its rise thereafter. It became clear then that golds rise has little long-term reaction to the state of the developed worlds economies, but has everything to do with the state of the worlds currencies. We fully agree with the Mexican Central Bank Presidents view that the world is moving to a perfect storm when interest rates begin to rise again in the developed world. The carry trade will pull in its horns very rapidly causing a flood of funds to exit from the emerging world back to the rising interest rate nations. In turn they will see havoc in their fixed interest rate markets themselves as yields rise and prices drop. The hunt for yield will then be like a bull in a China shop in world markets. So we take our focus away from growth and look at the ripple effect that will follow. And in that climate, how long will growth last. Mr. Bernanke and Mr. Carney will have unenviable tasks then.
Silver U.S. silver buyers should shortly re-enter the market.
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
3 days ago