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.
Asia accepted New York’s closing price over $1,360 and took it to $1,366 before London’s opening. The euro started to turn the corner at $1,3494 up 50 cents overnight. Then it climbed to $1.3530 and as the impetus for the gold price is in Europe, today, the Gold price followed it up in the dollar to Fix at $1,372.25 and was up €2 at €1,014.30.
Asia is back from its Chinese New Year holiday and importers of gold are stocking up. Inflation fears are rising world-wide as we saw in China and the U.K. in the figures released yesterday.
No more gold was sold from the SPDR gold ETF in the States yesterday forcing the market to pay up to get alternative gold supplies. As we said yesterday SPDR sales appeared to be absorbed easily. Today’s continuing rise in the gold price reinforces that belief.
Just ahead of New York’s opening the dollar gold price was $1 higher and up $10 on yesterday at $1,372.87 in the middle.
Gold – Very Short-term
Gold is continuing to battle resistance, which it now has on the back foot. We are in a high-risk area for investors and expect a strong move either way now. We expect a vigorous day today in New York today.
Silver – Very Short-term
With silver trading at $30.73 we expect it to rise in New York. As with gold, silver is in a high-risk area at the moment with a clear direction about to be given.
Gold Price Drivers
In the UK inflation has jumped to 4% twice the Bank of England’s target. While inflation in the developed world is largely low, as Mervyn King, Governor of the Bank of England said, “…raising interest rates to tame temporary inflation, risks undermining growth.”
So many countries are weakened to the point where they face the same situation that inflation may well get a head start before central banks can tackle it properly. Once it starts, inflation pressures have tensioned prices to take off at speed.
Likewise, food inflation, as a result of the aberrations in the world’s weather, is rising fast and may well produce much more social unrest in the world than we have seen so far in 2011. Mind you, 2011 has in its first month produced two revolutions and three changes of government with social unrest close to the surface in three other nations. I can’t remember another year starting like that. We do not expect anything but more of the same disturbing events in 2011. Too many fundamental flaws are just below the surface of the global economy right now for it to become a ‘quiet’ year. It could not be more gold positive.
Currently, we are presenting in the Gold Forecaster, a series called “Financial Earthquakes”, covering the main crisis areas in the financial world and what they could lead to.
[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].
