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.
And then the euro softened against the dollar, which remained weak against other leading world currencies. We expect overall that the euro will continue to strengthen against the dollar going forward. Europe wants its reputation back and the States is happy to see a weak dollar, despite what Treasury officials say there. So, this is a pattern that will continue. Consequently although gold slipped slightly in the dollar it remained at €966 [at the Fix] today. Asia did not take the gold price higher. With China celebrating the “Year of the Rabbit” so on holiday demand from there may be small. When they return from holiday….
In the U.S. dollar gold Fixed this morning in London at $1,332.50. This was $5.5 down from yesterday afternoon.
Gold – Very Short-term
In New York today we expect gold to move only slightly but capable of slipping a little. Overall, we expect a quiet day for gold, in New York.
Silver – Very Short-term
Silver was Fixed in London this morning at $28.30 only three cents lower than yesterday morning. This resilience evidences the underlying strength of silver over gold. We expect a slightly stronger day for silver today in New York.
Gold Price Drivers
With the Egyptian revolution turning violent yesterday one holds one’s breath. With the army holding back one cannot overlook the possibility that the new Vice President wants to be President. It is clear that the winds of revolution are blowing over much of the Middle East. With a little fanning we could see more of them. Revolutions can start with good motives but inevitably a new force bent on control comes in. Will Libya be one of them. The other potential hot spots won’t affect the global economy.
In the past, real rates of interest [Interest rate – inflation] turned a strong and growing 1980’s U.S.A. and its dollar into the world’s prime currency. Today growth has to go a long, long way before the Fed can raise interest rates. But there is a specter that interest rates may rise because of a decay in the quality of the credit there. This will not convince people to invest in the dollar. This makes today very different from the 1980’s. Interest rate rises in a lackluster economy choke growth and credibility!
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, as well as our gold forecast for 2011.
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