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Gold Today -New York closed at $1,187.70down $6 on yesterday after another opening effort in New York to drive the gold price down on the back of a stronger dollar. Today sees the dollar holding at $1.09 against the euro with the dollar index at 97.00. Asia saw gold moving to $1,190 ahead of London's opening. The LBMA Gold Price was set at $1,187.85 and the equivalent euro price was ?1,089.87. Ahead of New York's opening, gold was trading in London at $1,186.20 and in the euro at ?1,090.56. Silver Today - The silver price fell back to $16.74 down 3 cents in New York. Ahead of New York's opening it was trading at $16.68. Gold (very short-term) The gold price should look for a bottom, in New York today. Silver (very short-term) The silver price should look for a bottom, in New York today. Price Drivers Tuesday saw purchases of 0.597 tonnes into the SPDR Gold ETF, but no movement in the Gold Trust. The holdings of the SPDR gold ETF are at 715.857 tonnes and at 166.60 tonnes in the Gold Trust. As a forerunner to the expected IMF announcement on the inclusion of the Chinese Yuan into the basket that makes up the IMF' Special Drawing Right, the IMF has announced that the Chinese Yuan is no longer 'undervalued'. The next statement should include that it is a "well used currency". Thereafter we expect a fuller announcement on its inclusion in the SDR. At the same time the Chinese Premier concludes his 'empire building' trip around the world.Such quiet building of the Chinese sphere of influence appears to be being largely ignored. However, it is very significant for gold. Why, because China has made and is making a huge effort to buy and find gold as well as develop the Shanghai Gold Exchange into the global hub for gold. Its attitude to gold is very different to that of the developed world where gold, while an important reserve asset, is kept in the background behind national currencies, with the dollar atop the currency mountain.China clearly does not want to be dependent on this mountain, while being included in it. It is moving gold to a far more active role in their monetary system. All investors should be asking why. The rise of China is not simply the rise of an emerging country it is taking power and wealth from the west. There are clear divisions between China and the developed world at the same time. These are likely to grow. Extrapolate these currents and it is clear that gold will find a far more active role in the future in the global monetary system in a far more turbulent world, which remains weakened by the 2008'credit crunch' and not in a position to undergo the financial turbulence that comes in a divided world. These are soon to become historic times for gold and for the global monetary system.The turbulence in the global currency markets as the dollar surges and the euro wanes alongside a Yen at new lows, are symptomatic of what lies ahead.Subscribe www.goldForecaster.com Silver- The silver price has dipped to the bottom end of support but remains there. As we said yesterday it seems to be ignoring supports and resistance levels and like gold, not sticking strictly to what the Technical picture tells us will happen. Subscribe www.SilverForecaster.com Regards, Global Gold Price (1 ounce) | | Today | Yesterday | Franc | Sf1,127.84 | Sf1,131.55 | US | $1,186.20 | $1,195.00 | EU | ?1,090.56 | ?1,096.33 | India | Rs.75,958.32 | Rs. 76,453.71 | | | |
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