Gold and Silver's Daily Review for 15th October 2010


The dollar has crossed the $1.41 to the euro line and is headed to $1.50.   There hardly seems anything in its way for more substantial falls.   How will the markets of the world react to a dollar somewhere between $1.50 and $1.70 to the euro?   We are writing on this in the next issue of our newsletter.

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As the disclosures on the building foreclosure front in the U.S. indicates, the recovery will most certainly be jeopardized by another banking crisis and QE2 will have to be bigger than the first one.   The gold price in Asia and London today held yesterday's levels and Fixed at $1,377.50 and held there before U.S. markets took the reins and sent it roaring again to $1,384 just ahead of the opening bell in New York.   Silver leapt to $24.65.   We are staring at $1,400 soon, at this rate.   It has hardly moved from yesterday's €975 and Fixed at €977.   Again, this is all about the U.S. dollar.

Still inside the U.S. there is little evidence of long-term investment but there is evidence of traders shorting the gold price on COMEX.   The spreading positions are taking open interest higher, telling us traders believe that volatility rules the markets..

Apart from covering the gold markets Gold Forecaster and Silver Forecaster are structured in a way that addresses macro-economic factors from oil to currencies covering the pertinent gold markets that directly affect the gold price and some that simply influence it.   It is a "must-read" for all who want to understand why the gold price is moving as it is and why.   It also aims to help you understand why currencies and today's national economic problems are influencing the global economy and the precious metal prices [we cover platinum in the Silver Forecaster too].   It is vital to understand these subjects so as to be able to profit from the behavior of the gold, silver and platinum prices.

Gold – Very Short-term

Gold should continue remain positive in New York today.

Silver – Very Short-term

Silver should continue to behave positive above $24.

Gold Price Drivers

Will the Obama Administration gain more votes by declaring China a 'currency manipulator' or more by delaying the announcement until after the mid-term elections?  Could this be the decision of the day?   Either way we are looking at positive news for gold and silver.   Markets are continuing to digest the present reality of the nations behind each currency are going to act in their own interests on the economic and exchange rate fronts.   This again fosters a greater likelihood of global gold investment and currency chaos.   Just look around and ask yourself, is there any movement out there to stop this from happening?

China's five year plan will be another step on the path to China's becoming the world's largest economy in the world.   The plan will let us see beyond today and tomorrow and help us to take advantage of future realities as opposed to being a victim of what's happening today.   What is undeniable is that gold will do well now and then.

We have written about these in the next issue of the Gold Forecaster.   Subscribe if you wish to understand these facets of the gold market.


Julian D.W. Phillips