Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Gold is galloping now, standing at Asia’s close at $1,464. Before the Fix it had moved up to $1,470 and the U.S. dollar against the euro stood at $1.4404. In the euro the gold price moved modestly from $1,018 yesterday to €1,020.62 this morning ahead of the Fix. The Fix came in at $1,470.50 and €1,020.97.
With the Eurozone crises getting worse this week you may feel that the euro should be falling not the U.S. dollar. The interest hike yesterday of ¼% did the trick. With more interest rate rises to come this year, the E.C.B. appears determined to fight inflation. This will strengthen it at ground level.
After the Fix, but ahead of New York’s opening gold attacked the $1,471.15 level.
Meanwhile Silver moved over $40.23.
The oil price is still rising, now at $123 for Brent crude. The falling dollar is a factor here too.
Gold – Very Short-term
The gold price continues to rise and should continue to do so today in New York.
Silver – Very Short-term
Silver is galloping still and should move to higher levels today in New York.
Silver & Gold Price Drivers
The new record price, in dollar terms, is due to the falling dollar almost entirely at the moment. The €2 rise in the euro gold price tells us that gold is facing steady persistent demand that will continue. We still expect the euro gold price to rise to its previous peak at €1,065.
To emphasize the point, let’s put today’s price as it should be seen; the dollar dropped today against both gold and the euro. In gold it fell to $1.471.5 and in the euro to $1.4404.
The interest rate hike by the E.C.B. is telling the world that there will be two more hikes this year and that Europe will focus on fighting inflation no matter what. The dollar will continue to fall against gold too. Likewise, the dollar is a big feature in the silver price and will continue to be so. Currency factors will play a greater and greater role in precious metal prices going forward.
Still, Congress has not finalized the raising of credit limits and government shutdown threatens in the U.S. Looking in from outside, the brinkmanship being played by both sides is undermining the credibility of U.S. politics and demonstrating that even in the world’s largest economy, partisan politics can emasculate government.
When it comes to money, creditors have to tread more carefully when they see this. Inside, the U.S. such antics may appear acceptable, but the image of Uncle Sam is being weakened outside. Long-term this is very bad for the dollar.
In an increasingly, financially-divided world, is it any wonder that investors favor a ‘neutral’ investment such as gold and silver?
[The Gold Forecaster and Silver Forecaster are a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.] Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
