Wednesday, 5 December 2012

Gold & Silver Market Morning



By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - GoldForecaster.com



-- Posted Tuesday, 4 December 2012 | Share this article | Source: GoldSeek.com

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Gold Today –New York closed at $1,715.20 yesterday. This morning, Asian dealers pushed prices down, unusually, to $1,705 before London opened. It was Fixed at $1,706.75 down $11.50 on yesterday’s Fix. In the euro it was Fixed at €1,305.354 down €11.5, while the euro was stronger at €1: $1.3075 and strengthening.  Ahead of New York’s opening, gold was almost the same as Friday morning’s level at $1,706.75 the same as the Fixing and in the euro at €1,304.61 down €23 as the euro continued to strengthen.

Silver Today – Silver closed in New York at $33.59 yesterday. In Asia and London’s start to the week, silver slipped to $33.33 in London, ahead of New York’s opening falling slower than gold.

Gold (very short-term)

Gold is expected to consolidate with a negative bias, in New York today.

Silver (very short-term)

Silver is expected to consolidate with a negative bias, in New York today.

Price Drivers
Gold & Silver – With the Technical picture still favoring the downside, traders and speculators in Tokyo pushed the gold price down to nearly $1,700 at the quietest time of gold’s day. Again traders and speculators are relying on the downwards pointing Technical picture. But this still leaves the gold price within a tightening trading range. A clear direction can only be given once the pennant is fully formed. As we said yesterday, as this narrows so we must again prepare ourselves for a strong move, either way likely later in the week.

Perhaps the most important factor affecting traders and speculators [not long term holders of gold, Asian demand or central bank demand] is the turn the “Fiscal Cliff” negotiations are taking.  [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] These are, we believe taking a turn for the worse as President Obama and the Republicans harden their stances and demand more from the other side. A question about to be contemplated is, “Which side has the most to gain, if the U.S. falls over the Fiscal Cliff?” It seems that the President will! If this is the case and he is actually prepared to blame the Republicans as the recession is approached, then all markets will begin to discount this shortly, precious metals included. But as gold has so many other supportive factors behind it we cannot see speculators or traders dominating the gold or silver markets for long.

It seems that the bad effects of a fall over the cliff are resulting in businesses now acting as though it’s already happening and laying off workers as well as conserving cash!

Silver – Silver is being pushed to follow the gold price but is doing so in a small way and seemingly unwillingly.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

Global Gold Price (1 ounce)

Today
3 days ago
Franc
Sf1,581.73
Sf1,601.04
US
$1,729.55
$1,729.55
EU
1,304.61
€1,327.67
India
Rs.93,333.62
Rs.94,701.51


-- Posted Tuesday, 4 December 2012 | Digg This Article | Source: GoldSeek.com

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