Gold and Silver's Daily Review for 10th November 2010

It will take a while for traders to be weaned off the $: € exchange rate relationship to gold.   We have seen gold in the euro rise to new heights and breaking this relationship again, but New York keeps coming back to it. As the dollar strengthened to $1.377 gold dipped below $1,400, but then recovered in London trade to rise to $1,408.00 even as the dollar got stronger. 

The discord ahead of the G-20 on exchange rates and currencies is loud.  We did not expect anything solid to come out of the meeting, but neither did we expect such disagreement, for the G-20 is usually a fairly hormone-free affair. The sad fact is that such discord points to the future.   Is it any wonder that the head of the World Bank wants some sort of anchor to value global currencies that can only be found in gold?

Apart from covering the gold markets Gold Forecaster and Silver Forecaster addresses macro-economic factors from oil to currencies covering subjects that directly affect or influence the gold price.  This week we will cover the concept of gold being used as a reference for currencies. Only part of it will be seen in the public domain.  It is a "must-read" for all who want to understand gold and silver.   It helps you understand the why of the gold & silver price moves.  [We also cover platinum in the Silver Forecaster too].   Without understanding can you successfully profit from these markets?

Gold – Very Short-term

The consolidation that we are now seeing is just above $1,400.   We expect this to continue with a heightened level of volatility.   The bias will remain positive.

Silver – Very Short-term

With silver investors looking sideways at the essentially financial silver market of COMEX, where margin requirements have been raised by 35% yesterday, we expect a more subdued physical silver market until this has been absorbed.   We do not see it as being sufficient to stunt silver's performance though.   Currently sitting at $28, we continue to see a positive bias with the market continuing to consolidate for the time being for silver.

Gold Price Drivers

Global divisions, now on the subject of economics, reminds us that man has been divided for the last few thousand years and despite his seeming advancements remains true to his forebears.   There are no real signs of a common accord between a declining west and a rising east.   This will be an ongoing process for the foreseeable future.   It will continue to be gold positive.

Some major monetary events lie up ahead, with the redefinition of the I.M.F.'s concocted currency, the Special Drawing Right, being reformulated at the moment [announced on Jan 1 2011.   Ahead of that and after the announcement, we do expect to see some major monetary events that will affect the global economy deeply.   Again it is all gold-positive.   We are a newsletter that will specialize in this aspect of gold, so subscribe through &


Julian D.W. Phillips