Gold and Silver's Daily Review for 6th September 2010
It is also the day when the gold season sees all the driving factors come together as the harvest is over in India and the festival season has begun. Jewelry business focus points to the year -end festivities and investment demand is keenly aware of the structural faults hurting the ship of the global economy, which sees the east side pulling ahead and the West side struggling hard to keep what little momentum it has, going.
After a remarkable Friday that saw the gold price drop away, when the employment figures were slightly better than expected, then turn round to the upside taking the gold price back to fighting resistance at $1,250 again. That's how Monday in Europe started. Europe has the gold market to itself today, with the States closed. The Euro climbed stronger to $1,29 at the start of the day.
The morning Fix in London was strong again at $1,249.50 a very positive level. The gold price held slightly higher than that after that.
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Gold – Very Short-term
Friday's gold price performance showed that U.S. economic news does not dominate the gold price as it fell back $12, before turning around and attacking resilience. This showed the underlying strength of demand in the gold market and the fact that one piece of better news is not enough to resuscitate confidence in the factors that could bring the gold price down. With additional traditional demand coming into the gold market this week, we expect today to be a positive one for gold.
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Silver – Very Short-term
Silver looks better on the charts than gold. We had evidence of that last week as the silver price keeps moving higher. As it now stands at $19.87 up from Friday's Fix of $19.66 we again expect a positive day for silver.
Gold Price Drivers
This is London's day with U.S. markets closed. So expect the bulk of U.S. investors to be away from the market. There will be those consummate investors who will not be able to stay away and they may be active in London still, but in the main, the gold price should reflect London, European and Asian demand only.
Julian D.W. Phillips