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.
What a different week! Asia took the gold price to $1,218 before London opened and, as a reflection of good demand, London set the morning Fix at $1,222. This is a technically strong level too. Ahead of New York’s opening the gold price rose again to over $1,226 giving us a feel for New York’s day ahead. Again we say, it looks like it has won the battle of $1,200. Is this time to pick up some good shares as well? To find out our preferences and for our full range of weekly forecasts please subscribe through: – www.SilverForecaster.com or www.GoldForecaster.com for our weekly newsletters.
The week started with a lackluster currency scene as the Euro sat at $1.2805 against the U.S. $.
Gold – Very Short-term
The Fix at $1,222 has set the scene for the gold price going forward. We expect another strong day for gold.
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Silver – Very Short-term
After a Fix on Friday of $18.06, silver jumped in Asia/London time to $18.225 Monday morning. This was the ‘shunt’ effect we mentioned on Friday. Silver is now running with gold and climbing over $18.40 as we write!
We do expect a positive day for silver in New York.
Gold Price Drivers
The theme of the day is that the Eurozone showed good growth for Germany but not for other nations in Europe. What can be difficult to understand are the ramifications of having one currency cover many nations. It is a more rigid version of fixed or ‘pegged’ exchange rates. Nothing is there to stop capital and manufacturing form moving to the most efficient part of that bloc. In addition, when different currencies dominated the area, exchange rates would move to discourage such movements, so keeping capital in the country of origin, as it were. This does not happen now, so strains build up in the nation losing out. These strains have shown themselves, first, in the Sovereign Debt crisis, but they have not finished their work by a long shot. The mood of uncertainty has now become a long-term feature in the Eurozone, as well.
It was Asia that moved the price early this morning. Expect that demand to grow in the weeks to come!
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Regards,
Julian D.W. Phillips
