Asia again lifted the gold price to over $1,513 and also took the euro to €1: $1.45 before London opened. The euro pulled back slightly to €1: $1.4375 during London’s morning. At the morning fix in London it fixed at $1,508.00 and in the euro, lower at €1,041.08.
While more confident of Greece ‘doing the right thing’, the market is still trepidatious, waiting for Greece to now accept the individual austerity measures.
Ahead of New York’s opening, in the euro the gold price stood at €1,044.20 and rose in the dollar to $1,511 as the euro climbed against the dollar to €1: $1,4480.
Silver remains steady, unperturbed by the Greek tragedy, trading at just under $35 after being fixed at $35.02 and traded at $34.86 ahead of New York’s opening.
Gold – Very Short-term
Gold is likely to improve in the dollar, should the Greek Parliament approve the individual austerity measures today, in New York. In the euro we expect it to show an upside bias.
Silver – Very Short-term
Silver is likely to remain fairly neutral, with a slight upside bias, in New York today.
Silver & Gold Price Drivers
Silver’s performance has been steady with gold. Silver is not as strongly linked to its monetary aspects as is gold. 50% of the demand for silver is from industry. While silver is becoming more of a ‘needed’ metal it is still vulnerable to a global downturn. We do not see that happening with, at worst a ‘flat’ global economic performance. Silver’s performance going forward will differ slightly from gold. The depth of the economic global changes has never been so great. This makes volatility an increasingly common feature of the markets. Having said that the size of corrections is diminishing in the gold market [we do not expect to see another $50 down to $32 in silver in the future] and will do so in the silver market from here on. As the months go by, we do see the silver price to move more in tandem with the gold price as its monetary qualities increase as confidence in currencies fall.
Today remains an uncertain day for gold and silver. Please note that if the Greek Parliament does support the individual measures the debt crisis will not go away. It is up to the bankers to help Greece repay the debt for the nation of 10 million people has been swamped by $300 billion repayments. Unless the French proposal is adopted, expect the Greek crisis to reappear down the line.
We are producing an article on the 111 tonnes of Greek gold in the next issue of the Gold Forecaster and Silver Forecaster. What are the issues surrounding this gold and what’s happening to it?
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