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Gold Today –New York
closed at $1,709.10 up $5 on yesterday. This morning, Asian & London
dealers held it around that level until it was Fixed at $1,709.75 up $1.25 on
yesterday. In the euro it was Fixed at €1,318 down €6 while the
euro was slightly stronger at €1: $1.2970. Ahead of New York’s
opening, gold was $1,709.4 and in the euro at €1,320.58.
Silver Today –
Silver closed almost exactly the same in New York at $33.06 yesterday. In
Asia and London, silver held at the low $33 level at $33.07 where it stood
ahead of New York’s opening.
Gold (very short-term)
Gold is
expected to show a fairly neutral bias, in New York today.
Silver (very
short-term)
Silver is
expected to show a fairly neutral bias, in New York today.
Price Drivers
Gold & Silver – In tomorrow we
expect to hear news of more Treasury buying by the Fed which it will do by
raising the amount of Mortgage bonds it buys from $40 billion a month to $45
billion a month. They view this stimulus as what’s needed to sustain
the economy and reinforce improvements in industries such as autos and
housing, which appear to have picked up. The Fed’s latest round of
quantitative easing will total $1.1 trillion, with about $620 billion in
mortgage-backed securities and $500 billion in Treasuries. They have to get
the economy up to a speed where the momentum will carry it forward without
this support. If they fail and momentum slows then the whole QE program will
turn toxic and create accelerating monetary inflation. That’s why so
many worry about quantitative easing so much. Nevertheless it will undermine
the value of the dollar anyway and in the process and over the longer term,
boost precious metal prices. Any sign of runaway monetary inflation and
precious metal prices will take off never to look back. . [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] The most sensible aspect of Q.E. is that it helps the consumer at
ground level. It will raise house prices as mortgages become cheaper, leaving
more disposable income in consumer’s pocket and hopefully improve the
jobs market as 70% of the U.S. economy is driven by the consumer. But as we
said, it will benefit precious metal prices as the dollar’s buying
power is reduced.
The concept of looking for a quiet peaceful untroubled world on the
path to economic recovery is to become less likely, according to U.S.
Intelligence agencies. The scope and likelihood of change in the next 17
years is enormous on all fronts including the political, economic and
monetary fronts. If we accept this report, then investors will have to
re-evaluate their strategies for the long-term. Particularly Pension Funds
whose view has to be up to 30 years or more to cover the working life of the
average worker. This is gold and silver positive!
Silver – Silver should follow gold but may well show more vigor on the upside!
Regards,
Julian D.W. Phillips
for the Gold & Silver Forecasters
Global
Gold Price (1 ounce)
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Today
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3 days ago
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Franc
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Sf1,568.37
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Sf1,583.02
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US
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$1,692.15
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$1,702.50
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EU
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1,295.08
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€1,301.01
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India
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Rs.91,613.85
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Rs.92,959.11
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