Gold and Silver's Daily Review for 24th November 2010
Gold is holding its higher levels at $1,376.25 where it was Fixed this morning in London. The Eurozone crisis is not abating people are simply waiting for the next episode.
The euro dropped to $1.33 in London's morning recovering to $1,3344 later ahead of New York's opening. What we suggest you take note of is the new record level of the gold price in the euro at €1,033. This tells us that Europeans are now buyers of gold.
It is a strong defensive attitude to believe that your system of money will hold out, or your currency will stand even if troubled. This week has seen that attitude in Europe ahead of the acceptance of the rescue package by Ireland. Afterwards, when it became clear that that rescue package may not be accepted by a new government as this one seems to be collapsing, the mood in the market changed. Now the attitude appears to be that Ireland is falling and may well be followed by Portugal and others, even taking down the euro, because we are not convinced that it can be saved. That crumbling of confidence changes everything. Can the U.S. dollar escape this change of mood in the future?
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Gold – Very Short-term
Gold moved to hold the $1,376 level and appears to be gathering itself to tackle higher levels now. We would be surprised if New York took it down and held it down ahead of the Thanksgiving weekend.
Silver – Very Short-term
Silver is winning the battle and moved from the $27.30 level to the $27.40 where it may well favor the upside in New York today, ahead of the Thanksgiving weekend.
Gold Price Drivers
The question we must ask is, "Do you feel you should buy gold?" Or, "Do you feel you should sell gold?" Your answer will tell you if you are looking at gold or the reasons why people are buying it. We will post part of an article shortly titled, "The Gold Price is not about Gold!" The full article will be presented in the next issue of the Gold Forecaster, which you can read when the holiday weekend moves into cruise mode.
Julian D.W. Phillips