MN: Gold steady as Greek crisis remains unresolved
New York closed at $1,737 but Asia pulled it back to $1,726. The euro was unchanged to at €1: $1.3142 ahead of London's opening. At the Fix gold was set at $1,720.50 and in the euro at €1,310.059. At the time the euro stood at €1: $1.3133. Ahead of New York's opening the gold price held the level set by the Fix at $1,720 with the euro at €1: $1.3124 leaving the euro price of gold at €1,310.58.
Silver was holding at $33.33 just ahead of its London opening. Ahead of New York's opening silver stood at $33.17 down only half as much as gold.
Gold (very short-term)
Again, the gold price should have a steady to stronger bias in New York today.
Silver (very short-term)
Again, the silver price should have a steady to stronger bias in New York today.
Price Drivers
The week starts as has the last two weeks, with reassurances that the Greek crisis will be resolved this week. The difference is that few are listening to the E.U. leaders. All are waiting for action. As the E.U. leader rightly said a few weeks ago, "We know what to do, but the problem is getting re-elected afterwards."
Last week saw the U.S. gold markets lift the gold price to $1,738 with the euro stable against the U.S. dollar at just above $1.31. This confirms the gold price is moving against all currencies. London showed its dominance over the price and pulled it back to Friday's levels at the Fix.
Of particular note has been the way the gold and silver prices brushed aside technical resistance and when they were falling, support levels. This is a reminder to investors that it is fundamentals that drive prices, not the technical picture. The technical side of the markets gives the distinct support levels and resistance levels. These are vital to signal exit and entrance points, as well as investor patterns, but cannot overwhelm significant fundamental points. By keeping an eye on both and understanding both of them, there is no need to come and apologize for making wrong trend calls, which were simply adjusting support and resistance levels. The shape of a market where the technical picture is usually right, no longer applies to the gold and by extension, the silver markets, because more frequently the buyers are not so price sensitive so as to react to price moves. For instance a central bank is a buyer on the dips, simply because that's when the volume is available. Central banks want ounces not profits! Likewise gold exchange traded fund investors are mainly holders of their positions, not buyers and sellers.
