Gold - The Weekly Global Perspective

By: Julian D. W. Phillips | Sat, Jun 18, 2005
Print Email

HIGHLIGHTS in "Global Watch - The Gold Forecaster"
Features Below: -
- The separation of Gold from the €/$
- O.P.E.C. raises quotas?
- Prospects for the U.S.$ - DJIA - 10-Year Bond - CRB - Gold : Oil Ratio - 7.5! - Gold : Silver Ratio.
- Tech. Analysis of the Gold Price: Long/Short term in the U.S. $
- The present Gold Price Drivers.
- International Gold Markets
- Silver - Platinum

Special Offer! - Trial Subscription 3 months for $99 - go to

Do you want to receive your own copy of "Gold - The Weekly Global Perspective" [excerpts from the FULL version ] - Send your e-mail address to:

Excepts from the "Global Watch - The Gold Forecaster": -

The Global view is the only professional approach!
This last week has seen the price of gold show more life than it has done in the last few years. It has broken up and out of its price ceiling and has clearly broken away from the . This prompts the folowing questions: -

We answer these questions below, through our global view of gold, where we explain the gold price in different gold-important currencies from both a fundamental and a Technical point of view.

The separation of gold from the €/$!
We have stated in the past that the gold 'bull' market had to become independent of currencies before it could rise into a dynamic 'bull' market. It appears to be in the process of doing so now.

The automatic linking of the gold price to the Euro has definitely broken down now. As the tumbled gold rose, in both the $ and the . Gold broke through the all time high in of 355 and was free. Free of what? With hindsight, the link was an unreasonable one as there are no common denominators in the as a currency with gold. As gold is mainly dealt in, in the U.S.$, it commenced its Technically linked performance in that currency, which it is doing at the moment. As has been described by the President of Germany's Bundesbank, Gold is a good counter to the U.S. $. The big difference between a falling and a falling $ is that the Europeans will turn to gold far quicker than U.S. citizens will turn from the $. After all not far off 300 million people, of whom only 10 million have passports have only ever know the $ and have always trusted it. It has never been replaced or debauched in their eyes. Europe has had 25 currencies in its 25 member states, and in some these currencies have been changed and debauched, during and between wars, so the inherent trust in paper currencies, like that of the States is just not there. [We discuss this further below in the section]

So you may well ask, why is gold now doing so well against the $ itself with the $ so strong? To demonstrate just how Gold is now free to act as a measure of currencies, we would answer that gold is not strong, the $ is weak, but the is weaker, giving the perception of strength to the $.

The U.S. Trade deficit well describes the state of the international value of the $. At $57 billion, the market congratulated itself on it being lower than expected, but bear in mind it is the a continuation of a stream of unacceptable deficits that are undermining the value of the $ in international markets. The Gold price is reflecting the condition of both the & the $ now! It would be accurate to say that at this seasonally quiet time for gold the gold price is reflecting the performance of currencies, not the performance of gold as reflected in demand/supply. So it would be reasonable to describe the gold price this way:

The 'de-coupling' of gold from the is a major structural change for gold, but its ramifications are busy panning out and are still to be understood and accepted by the market. This requires more of an emotional change than an intellectual one.

It certainly validates our approach to gold [below] where we look at the gold price in the different currencies and markets, where the gold price reflects the performance of each of the currencies and so stands at relatively different levels in each currency. For example: -

  1. The Rand gold price is too low to make gold mining profitable, because the Rand has been too strong.
  2. In the Australian $, which looks like declining this year, the gold price should steadily rise for the Producers there.
  3. For the last few years, the Euro price of gold has been a non-event. In the last two months it has moved more than it has in the last two years.

What is the gold price in the currency you deal in?

As you can see, the U.S.$ price of gold is only part of the picture. To have a professional approach you must look at the separate markets and factors and bring them into the total gold picture, as we attempt to do in this publication.

This topic promises to be the focal point of the gold market for the next couple of years, at least. This approach will prove to be the only professional one, from now on, or the ability to profit fully will be compromised. We hope we can be of assistance to you in this?

To Subscribe to "Global Watch - The Gold Forecaster", please go to:
To Subscribe to "Gold - Authentic Money" or "Gold - The Weekly Global Perspective" go to this link:


Julian  D. W. Phillips

Author: Julian D. W. Phillips

Julian D. W. Phillips
Gold Forecaster

Julian D. W. Phillips

"Global Watch: The Gold Forecaster" covers the global gold market. It specializes in Central Bank Sales and details, the Indian Bullion market [supported by a leading Indian Bullion professional], the South African markets [+ Gold shares shares] plus the currencies of gold producers [ Euro, U.S. $, Yen, C$, A$, and the South African Rand]. Its aim is to synthesise all the influential gold price factors across the globe, so as to truly understand the global reasons behind the gold price.

Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Gold-Authentic Money / Julian D. W. Phillips, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Gold-Authentic Money / Julian D. W. Phillips make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold-Authentic Money / Julian D. W. Phillips only and are subject to change without notice.

Gold-Authentic Money / Julian D. W. Phillips assume no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit which you may incur as a result of the use and existence of the information provided within this Report.

You should be aware that the Internet is not a completely reliable transmission medium. Neither Gold-Authentic Money / Julian D.W. Phillips nor any of our associates accept any liability for any loss or damage, including without limitation loss of profit, which may arise directly or indirectly from your inability to access the website for any reason or for any delay in or failure of the transmission or the receipt of any instructions or notification sent through this website. The content of this website is the property of Gold-Authentic Money or its licensors and is protected by copyright and other intellectual property laws. You agree not to reproduce, re-transmit or distribute the contents herein.

Copyright © 2003-2016 Julian D. W. Phillips

All Images, XHTML Renderings, and Source Code Copyright ©