Gold Today The gold price jumped in New York, yesterday to close at $1,613.90 up nearly $20. In Asia and ahead of Londons opening it slipped slightly to $1,607. In London it was Fixed at $1,608.50 up $10 and in the euro at 1,228.801 up nearly 11, while the euro was $1.3090. Ahead of New Yorks opening, gold was $1,607.65 and in the euro at 1,228.25.
Silver Today Silver continued to recover to $29.38 cautiously in New York yesterday. Ahead of New Yorks opening silver stood at $29.13.
Gold (very short-term)
We expect gold to continue to consolidate above the $1,600 level, in New York today.
Silver (very short-term)
We expect silver to continue to recover, in New York today.
Gold & Silver With gold sold out of the ETFs and COMEX low on longs and high on shorts speculators and traders risk being caught either short or out of the market. The recovery in the gold price was driven by Asian and central demand. Central banks buy the dips and Asian demand has to pay up to get the bargain prices, which they are doing. With developed world gold action dictated by the Technical picture and Asia simply looking for a lower floor to get the opportunity to buy low, but ahead of a rise, we are seeing another clash between Western and Eastern cultures. This time, its Asia that has the West on the hop. So we expect to see more short covering in New York today. Or will we see gold slip to find support on previous resistance?
The Italian elections have left Italy ungovernable and Italy racing past Spain to become the next point of crisis in the Sovereign debt crisis that just wont go away. As Europes third largest economy a Sovereign debt crisis there brings the Eurozone debt crisis to a whole new level! Whats worse is that the result was a rejection of E.U. austerity measures!
Over in the States Mr Bernanke confirmed that QE will go on and on and on. He did state that he needs to see unemployment down and house prices up and holding longer term before he changes his policy. Observers appear to have got lost in the detail and missed the big picture, which tells us that an exit wont happen until it can leave U.S. growth unaffected and markets able to absorb high interest rates and the removal of vast quantities of money from the system in maybe two years or more time? Until then [and we see past then] gold will continue to benefit and by extension silver too. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
Silver The silver price is following golds lead cautiously now. While gold consolidates today we may see more strength in silver than in gold today in New York today.
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
3 days ago