Silver Market Morning
Gold Today –New York closed down at $1,757.60 down $13. Asia held it there overnight. The euro weakened slightly $1.3060, down half a cent. The gold price was Fixed at $1,756.75 and in the euro at €1,344.314 down €5. Ahead of New York’s opening gold stood at $1,756.50 and in the euro at €1,344.95.
Silver Today – Silver slipped slightly overnight, to $34.02. Ahead of New York’s opening it stood at $34.10.
Gold (very short-term)
Gold should consolidate, today in New York.
Silver (very short-term)
Silver should consolidate, today in New York.
Gold & Silver – The gold and silver markets are pausing continuing to get used to being in the mid-$1,750 area. The euro is also digesting these new levels over $1.30 while the dollar is now on the back foot as it gets used to QE3. All eyes in the U.S. continue to be focused on the Presidential race and not on the critical issues politicians need to, the clock is ticking on towards the political battle over the state of the nation’s tax cash flows and spending in the future that could undermine the efforts of the Fed to date. If a business were headed to a major drop in cash flow and the company only focused on who the CEO of the company was going to be, investors would be selling their shares heavily. But when it comes to a country, investors need to look over the edge of the cliff first then panic.
Today’s episode of the Eurozone daily drama is the rise in Spanish government debt yields again, as Spain shows more likelihood of asking for a bailout, despite its defiant stance. With capital continuing to seep out of the country’s banking system overseas, the move to a bailout is becoming inexorable. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] The very Latin system of bureaucracy in Spain will conspire to hurt it. The need to change this fundamentals structure is vital, if Spain is to continue solvent. But Spain has seen this dark side more than anyone else in Europe in the last century and may have to see similar stresses before they make the needed changes.
Silver – Silver is pausing after a good run and remains robust. We do expect to see silver continue to move more dramatically than gold.
Julian D.W. Phillips for the Gold & Silver Forecasters