As fears emanating from Europe spread, the gold price dropped in New York to $1,769 and fell further in Asia to $1,758 ahead of London's opening this morning with the euro also falling to €1: $1.3523 down nearly 2% leaving the gold price in the euro at €1,300, down €18. The Fix was set at $1,766.00, down $14 with the euro price Fixed at €1,299.007 down barely a euro, while the euro was at €1: $1.3595 down a cent.
The gold price slipped after that to $1,762.00 still in a very tight spread while the euro weakened a cent ahead of New York's opening to €1: $1.3568 making the price of gold in the euro €1,298.64.
The silver price fell a dollar to $33.72 ahead of London's opening. It is just not performing as gold has. Thereafter, it slipped to $33.57 ahead of New York's opening.
Gold (very short term)
The gold price should consolidate in New York today.
Silver (very short term)
The silver price should consolidate in New York today.
As Italy goes to the market for CAD$5 billion (B) to re-finance its loans the yields on its bonds rose through 7% yesterday, but fell back slightly after the auction. It is becoming clear that it now needs a bailout. Spain is now catching the contagious breakdown in confidence and still the European leaders are mired in procrastination and vague promises, with little detail. But Italian debt is three times the level of Greece making it:
Gold and other markets have gone into fear mode dropping like stones. But gold and silver should be the exceptions shortly, again, as they are non-government related items, nor do they have the features of currencies.
We have reached the point where fighting fires is just not working and a forest fire seems difficult to stop in the Eurozone. Greece cannot decide on a new Prime Minister, Italy needs a new one. The E.C.B. is the only hope for confidence in Sovereign bonds, but they will not buy the debt-distressed nation's bonds, yet. If Europe won't save itself, why on earth should China, with no real recourse, put good money into this pot? With their hundreds of millions of people still trying to climb out of poverty, why should they help to support the rich nations? To get a better perspective than we can give you here, please subscribe through www.GoldForecaster.com or www.SilverForecaster.com. Note how the Indian Rupee is now falling in the face of its banking downgrade! Gold is roaring to new record highs.
Julian D.W. Phillips for the Gold & Silver Forecasters