Gold and Silver's Daily Review for 9th November 2010

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While the dollar got stronger, gold got stronger. The $: € exchange rate is failing to show the state of the gold market but this time it seems that traders are being forced to recognize this.  


They are seeing gold rise in all currencies. If we were to price gold on that exchange rate it should be standing at around $1,370. But it touched $1,416 in Asia held there through the Fixing, which came in at $1,416.25. After that and ahead of New York's opening gold moved up to $1,422, before pulling back to the $1,416 area as New York sprang into action.

In other words, gold is rising in all currencies and reflecting major doubts about the value of currencies per se.

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

We would expect some consolidation around $1,410 to $1,420, but not for long.   Each hundred dollars on the gold price is a smaller percentage rise than the last one was.   We expect U.S. investors either closing short positions or realizing that the dollar is in trouble will catch the gold train soon.

Silver – Very Short-term

We would expect some consolidation around $28.50 area, but not for long.   Bear in mind this is up $1.50 from yesterday.   Each dollar rise in the silver price is a smaller percentage rise than the last one was.   We expect U.S. investors either closing short positions or realizing that the dollar is in trouble will catch the silver train soon.

Gold Price Drivers

It was Europe that has driven gold to new highs in the euro and despite the strengthening of the dollar in the last day, record prices are again being seen in the dollar.   The concept of gold being used as a reference for currencies has been expected by us, written about by us for the last five years.   Now the World Bank head is recommending it.   This is a huge leap for gold, which we are writing about in the next issue of our Gold Forecaster newsletter this week, so subscribe to get the full article there.   Subscribe through www.GoldForecaster.com & www.SilverForecaster.com

Regards,

Julian D.W. Phillips