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Suddenly the gold price has fallen in the euro
and the dollar at the opening
of business in London. The
gold price sank to
$1,492, Fixing at $1,492.75 before
slipping further during London’s morning to $1,489. In the euro gold Fixed lower at
€1,027.71 down from €1,044 yesterday.
It seems that the sell-off was due to the relief that Europe is not collapsing on the back of Greece.
Greece succeeded in passing legislation
to implement the austerity
measures passing the baton
to the E.U. for sorting out in the next couple of weeks.
Ahead of New York’s opening,
in the euro the gold price stood
at €1,029.34 and fell
in the dollar to $1,491.00 as the euro climbed slightly, against the dollar to
€1: $1.4489.
Silver pulled back slightly
after the Greek tragedy appeared to end, trading at just
under $33.96 after yesterday’s Fix of $35.02
and today’s of $33.93 ahead
of New York’s opening.
Gold - Very
Short-term
Gold appears to want to continue its downward bias today, in New York.
Silver – Very Short-term
Silver appears to want to continue its downward bias today, in New York.
Silver & Gold Price
Drivers
The stark reality that Greece cannot successfully repay its debts from
is economy has given way to not only the sale of State assets
[no mention of its 111 tonnes of gold] but to the voluntary lowering of Greece’s debt by its creditors. The target
of an orderly default in
2013 is in sight now. With Greece’s history from entering the E.U. to now, many are questioning the ability of the government to implement the measures on
the ground. For instance, tax collection will be a major problem. But with
these steps the problem has been shoved down
the road a way, so postponed for another rainy day.
The net effect has been that
holders of gold against a default have been selling their gold in the face of the new calm.
Hopefully, the E.U. and I.M.F. will
now pass funds across to Greece so that
the drama goes away.
It seems that the
U.S. debt situation will now move to center stage. We do expect the debt ceiling crisis to be resolved, but first the political posturing involved will be embarrassing to the
U.S. But that’s politics. We would be surprised
if gold and silver reacted
to the performance unless a default actually did occur.
The gold and silver markets are still in high risk territory vulnerable both ways. At the moment the direction of gold and silver, in the euro and the dollar is
down. It is just within
the trading range of the consolidation range it has been for a while and may well soon
move strongly one way or
the other, so be careful out there!
[We express our views in our newsletters each week very
clearly]
We are producing
an article on the 111 tonnes of Greek gold in the next issue of the Gold Forecaster
and Silver Forecaster. What
are the issues surrounding this
gold and what’s happening to it?
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,261.16: 1 ounce of gold.
Friday: Sf1,261.16: 1 ounce of gold.
U.S. $ -
Today: $1,511.00: 1 ounce
of gold. Friday: $1,511.00: 1
ounce of gold.
Euro -
Today: €1,044.20: 1 ounce
of gold.
Friday:
€1,044.20: 1 ounce of gold.
India –Today: Rs. 67,541.70: 1 ounce of gold.
Friday: Rs.67,541.70: 1 ounce
of gold.
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report.
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