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Gold Today –New York
closed at $1,714 down $11. This morning, Asia and London dealers took it
marginally lower to trade at $1,710 at London’s opening. It was Fixed
at $1,710.00 down $13.50 and in the euro at €1,342.756 down €9
from yesterday while the euro was at €1: $1.2735. Ahead of New
York’s opening gold was trying to slip lower $1,708.83 and in the euro
at €1,341.73.
Silver Today –
Silver showed a robust steadiness at $32.58 down 5 cents only, yesterday, in
New York. In London in the morning it slipped back to 32.29 until, ahead of
New York’s opening it stood at $32.29.
Gold (very short-term)
Gold is
expected to consolidate with a weaker bias, in New York today.
Silver (very
short-term)
Silver is
expected to consolidate with a weaker bias, in New York today.
Price Drivers
Gold & Silver – In response to
the news that the Eurozone is now in a double-dip recession the euro has
started to slip and traders and dealers are pulling gold lower slightly, with
it. We do suggest that readers of this report take a moment and reflect on
the risks to politicians if the U.S. falls over the ‘fiscal
cliff’. Politically the game thereafter will be a blame game. With
so-called popular support, Obama and the Democrats will try to blame
‘rich’ Republicans for the mess. So we expect that the
Republicans will give tax ground to retain support of the electorate. After
all, the consequential recession will be fresh in the voter’s memory
when the next elections come. Our conclusion is that a resolution will come,
but whether it needs to be again renegotiated thereafter, or the rich will
accept higher taxes, remains to be seen. A resolution means a continuance of
what is happening today, but with a bit more hope? Is that sufficient to force
gold and silver down? We do not believe it will be. The reasons behind
gold’s rise extend much further than U.S. politics to the east and
emerging central banks. In the best scene, the U.S. economy will continue to
be flat and leave monetary risks as high as they are today. So the best
result will be a continuation of today. The worst is that a recession will
quickly become ‘stagflation’. Both leave gold and silver soundly
supported. [To
follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.comand www.SilverForecaster.com]
Gold and silver investors should also look far beyond today at why gold
is nearly 50 times higher today than in 1971. The changes in the structure of
the world, in the structure of business and the consequential risks are part
and parcel of precious metal’s fundamentals that have built up over the
last 40 years. Will these change in the near future? Investors should not be
distracted by the wind and the surf hitting metals but keep their eyes on the
currents driving them.
Silver – Silver remains a currency play today and stay
volatile.
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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Sf1,603.74
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Sf1,596.84
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US
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$1,723.25
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$1,719.25
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EU
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1,328.69
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€1,322.25
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India
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Rs.92,542.83
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Rs.92,607.40
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