Gold and Silver's Daily Review for 29th Sept 2010


New York took the gold price down again but down to $1,286 where it bounced off support.  The action after that confirmed our feeling that major buyers are taking offers at and below their limits, cleaning out the stock in the market at those levels.  

When short covering and fund buying came in to pick up stock at those levels there was no stock too be found and the price of gold was propelled right through resistance at $1,300 and continued flying in Asia where it opened at $1,311 this morning.   London appeared to be mesmerized and traded gold at that level ahead of the Fix which was set at $1,307.50 the level it traded at just before New York opened.

U.S. investors can now see that although both the Euro and the Dollar are falling, the Dollar is now falling faster than the Euro standing at $1,3609.   There is now a 'battle' if not a 'war' taking place in currency markets.

One by one, currencies are intentionally weakening their exchange rates.   It will be nigh on impossible to shepherd all nations to hold to any particular rate or to keep the 'floating' system of exchange rates with the U.S. dollar moving towards freefall.   What price can you put on a currency when it does this?   Certainly, we are moving fast to the point where gold will measure currencies, not the other way about.   Right now the U.S. Dollar stands at 1/1307th of an ounce of gold.

In the next issue of our newsletters we will post articles [Subscribers can access our archives] on "Why did the gold price begin rising in 2,000 and is still doing so?" and the evolution of the gold market as $1,300 an ounce is crossed [for subscribers only].]

Gold – Very Short-term

Gold proudly stands at $1,307 having won the battle of $1,300.   Where next?   We will give you all these and more answers in our newsletters.   [If you want to get a professional understanding of the gold and silver markets we offer you a subscription, through: – or , to our newsletters.   Who are we? We are a newsletter that helps you to understand gold, its market and its place in the financial world.  In addition we have a 95% correct record on the Gold & Silver Prices. ]

We expect a positive day for gold today in New York.

Silver – Very Short-term

Silver opened this morning at $21.990 ready to take out $22.   London Fixed at  of $21.35.  We expect silver will have a positive day in the States.

Gold Price Drivers

While we are seeing new record prices, there are no new fundamentals in the precious metal markets.   The rise is a continuation of the change of current and tides as the picture for currencies and their values continues to decay.   We are now talking reliable means of valuing assets and in particular those global ones called gold and silver.   No longer can the developed world control these markets for Asian interests are very different to theirs.   This makes precious metals independent of governments.   There is no reason why their prices will not now rise to the levels global markets, individually and collectively, will decide.

As social unrest in the Eurozone mounts and the E.U. makes the fatal error of laying down punishments for nations that let their deficits rise above 3% of GDP, we expect Europe to again favor gold.   The Eurozone is not a real political force, rising above its individual member's sovereignty and yet it is trying to do so.   This will expose the weakness of the zone as strong surplus countries try to dominate the weaker ones.


Julian D.W. Phillips