After a pullback to the lower $1,390’s which is now support, gold rose overnight and in early London time to $1,4000 as the U.S. dollar slipped against most currencies to $1,3715.
We have yet to complete two months of 2011 and so far we have already seen several attempted revolutions in Middle Eastern countries, with so far two of them successful.
Gold and silver broke through resistance on Friday at $1,380 and just a business day later sits at $1,397.30 ahead of the London Fix. The dollar is slightly weaker only at $1,3697 leaving gold in the euro at €1,020.
The question hangs in the air, “Are these revolutions or just exuberant demonstrations?” Will they topple regimes and disrupt oil supplies. We will have to wait and see.
Asia continued to support the closing prices in the U.S.at $1,384. London took these prices slightly higher before Fixing at $1,385.50. In the euro gold moved up well and was Fixed at €1,021.26 this morning in London. The dollar euro exchange rate is not an issue today. Gold is independent of both right now, walking its own road.
