Posted Tuesday, 19 July 2011
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch -GoldForecaster.com
With gold closing in New York at the record high of $1,602 and U.S. investors buying over 10 tonnes worth of shares in the gold Exchange Traded Fund of SPDR, U.S. investors are returning to the gold market with a bang. While the dollar and the euro continue to fall against other main global currencies, the dollar fell faster than the euro yesterday. It stood at $1.4197 against the euro in London’s morning today. Gold in the euro stood at €1,129.18 down €7 from its peak.
It then Fixed at $1,602.00 a new record high. In the euro it Fixed at €1,129.04. After the Fix gold continued to rise moving to $1,605 ahead of New York’s opening. The euro rose against the dollar to €1: $1.4198, a recovery of almost 2 cents on the day.
Just ahead of New York’s opening, gold dipped slightly to $1,600.55 alongside a dollar standing at €1: $1.4193 with gold in the euro at €1,128.02.
Silver is steady in London having Fixed at $40.32 and trades at $40.17 ahead of New York’s opening.
Gold - Very Short-term
Gold may well pause today, in New York today.Silver – Very Short-term
Silver may well pause today, in New York today.
Silver & Gold Price Drivers
The main gold and silver price drivers of the day remain the debt crises on both sides of the Atlantic. What is in the process of changing is the appreciation of the consequences of the crises and the intractability of the underlying problems. When the problems first broke there was the denial. Then there was the hope that by selling assets plus a few more loans from their richer co-members of the E.U. the problems could be overcome. Add the hope of economic recovery and still Europe believed the problems were solvable. The bust came when it was properly realized that Greece just would not be able to repay its debt. The procrastination and disagreements between the E.C.B. and Germany has done further damage. The ratings agencies did their job and told it like it was. Now contagion, and with the E.C.B. saying it would not accept Greek debt as collateral, Europe is moving towards doubting the euro itself. The survival of the Eurozone is now subject to speculation. Beware of the danger of believing that the gold price is dependent on the debt crises alone.
Emerging market demand is the main persistent force and uninfluenced by these debt crises. The overall failure of paper currencies will bring much more demand from the developed world in the future. [The Gold Forecaster and Silver Forecaster discuss all these points and more making them a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.]
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Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,314.05: 1 ounce of gold. Friday: Sf1,306.20: 1 ounce of gold.
U.S. $ - Today: $1,600.55: 1 ounce of gold. Friday: $1,597.80: 1 ounce of gold.
Euro - Today: €1,128.02: 1 ounce of gold. Friday: €1,137.06: 1 ounce of gold.
India –Today: Rs. 71,366.92: 1 ounce of gold. Friday: Rs.71,142.05: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Tuesday, 19 July 2011
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