Gold & Silver Rise as Dollar Falls, “Well Bid in Euros” as Physical Traders “Buy the Dips”
March 31, 2010 by Bob Chapman · Leave a Comment
By Adrian Ash, GoldSeek
London Gold Market Report
THE PRICE OF GOLD & SILVER bullion rose against a weakening US Dollar inLondon on Wednesday, ticking higher as Asian shares ended the day lower and European stock markets held flat.
“A close above $1097 today will give gold its sixth consecutive quarterly gain,” says the daily note from Mitsui’s London team.
“Silver fixes higher in Europe, gold firm,” says Reuters, repeating Tuesday morning’s headline.
The Euro rose towards a 1-week high against the Dollar meantime on the currency market, while the British Pound jumped once again to breach a near-2 week high at $1.5150.
“Spot gold in Euros remains well bid and did not even [dip to] our previously forecast €800 support region,” writes Axel Rudolph, technical analyst atLuxembourg’s Commerzbank, in his latest weekly report.
Staying “short-term bullish” on silver, “We remain medium-term neutral as long as the silver price remains contained within its three month resistance line at 17.97 and the 15.59 late-Feb. low,” says Rudolph.
Adding 7.7% against both the Euro and Pound Sterling since the start of Jan. 2010, the gold price today rose above $1110 per ounce for Dollar investors.
Silver today came within 10 cents of a 10-week high at $17.61 per ounce, some 4.1% higher from the first-quarter’s start.
“Whenever gold falls we see good physical buying coming in,” the Reuters newswire quotes one Europe-based trader.
“Even on the private customer side, there’s pretty good demand for coins and bars.”
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