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Monday, January 30, 2012

Gold and Silver Prices prediction february 2012

Gold and Silver Prices prediction february 2012 ; Gold and silver were falling Monday morning as disagreements between EU and Greek leaders over the terms of a second release of bailout funding threatens to delay agreements not only for a second round of bailouts, but the establishment of a permanent emergency “firewall” fund to replace the European Financial Stability Facility. Eurozone leaders continue to push for EU oversight of Greek budget decisions — a proposal Greece continues to reject.

Spot gold was nearly 0.3% lower, bid at $1,732.50 per ounce with an ask price of $1,733.50. Spot gold traded as high as $1,733.80 and as low as $1,722.70. The London afternoon reference price fix came in at $1,729, $3 per ounce higher than Friday’s reference price, according to Kitco market data.

During January, gold price demonstrated its strongest performance in a single month since August 2011; for silver price it was since July 2011. Gold price is currently 10.76% above its price from the end of 2011; silver has added 21.05% to its value.

in the U.S., the Commerce Department’s Bureau of Economic Analysis reported that December personal income increased $61.3 billion (0.5%), slightly higher than consensus expectations. Disposable personal income increased $47.1 billion (0.4%) in December, in line with expectations. On the flip side of consumers’ balance sheets, personal consumption expenditures fell $2.0 billion (less than 0.1%).

Gold bullion rose to $1,728 per ounce Monday morning in London, down slightly from last Friday’s close, according to BullionVault’s London Gold Market Report. Chinese buyers were snapping up physical gold during the week-ling Lunar New Year holiday, according to a China Daily report.

“People seem crazy about gold, snatching it up more like a cheap cabbage than such a precious metal,” the paper quoted a Beijing resident.

The value of sales at two of Beijing’s top gold retailers, Caibai and Guohua, reportedly hit 600 million Yuan ($95.28 million) — a 49.7% rise on last year’s sales. The gold price in dollars meantime rose around 25% during the same period.

European leaders struggled to reconcile austerity with growth on Monday at a summit due to approve a permanent rescue fund for the euro zone and put finishing touches to a German-driven pact for stricter budget discipline.

Meanwhile, over in Europe Greece is once again at the crisis point and, once again, negotiators working on a deal to restructure its debt seem poised to announce yet another deal to keep them limping along.

I expect another deal announcement on Greek debt and expect it to fall apart next month, like always. In the unlikely event the Greek debt deal holds together we may see gold running into some strong economic headwinds in the near term.

The economy is getting better in the U.S., not even the most pessimistic economists are denying it now, though many are suggesting we’re in for another fall in 2013. For right now hiring is picking up, production is increasing across a number of sectors and corporate earnings announcements sound like a continuous chorus of “Zippity Do Da”.

Next week expect more good economic news combined with what’s almost certain to be another announcement of a deal on Greek debt, kick in a little profit-taking and we could well see gold prices sag next week. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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