• Gold: 1,523.43 7.36
  • Silver: 18.57 0.62
  • Euro: 1.099 -0.003
  • USDX: 98.684 0.171
  • Oil: 58.18 -0.27

Silver Market Morning

Julian D. W. Phillips
|
Friday, April 4th

http://news.goldseek.com/2011/marketmorning.jpg

Gold Today – The New York gold price closed at $1,286.30 down $5.70 on Thursday, in New York. Asia held the price there on Friday morning, before London lifted it over $1,290 ahead of the Fix. The gold price was Fixed in London at $1,293.50 up $6.25. In the euro, it Fixed at €943.747 up €8.653 as the euro was weaker at $1.3706 up from $1.3766: €1. Ahead of the opening in New York gold stood at $1,291.40 and in the euro at €941.97.

 

Silver Today – The silver price closed at $19.84 down 11 cents on Thursday’s close, in New York. Ahead of New York’s opening, it was trading higher at $19.96.

Gold (very short-term)

 

We expect the gold price to consolidate with a stronger bias, in New York.

 

Silver (very short-term)

 

We expect the silver price to consolidate with a stronger bias, in New York.

 

Price Drivers

New York accepted the reality of support at $1,280 and let the gold price consolidate with a stronger bias yesterday. Today, in London, the gold price rose ahead of the Fix as physical demand flowed in. We have looked carefully at what lies ahead for gold, but this daily report is too small to give you our full story. [For more on this, subscribe to www.GoldForecaster.com and www.SilverForecaster.com and visit www.StockbridgeMgMt.com to hold gold out of reach of potential confiscation]

 

Yesterday, while the E.C.B. did hold interest rates at present levels [0.25%] they confirmed an in-depth discussion on turning to quantitative easing. This in itself painted a picture of the economic state of the Eurozone.

 

However, Mario Draghi head of the E.C.B. made it clear that if and when they use it, its main purpose would be to weaken the exchange rate [much as we have seen in Japan] against the dollar [and Yuan, with its fixation on the $ too]. This was intended to talk the euro down. If it is not as effective as desired, we will see QE used in the Eurozone. So, expect a falling euro [not to be confused with a rising dollar]. That’s why the dollar and the gold price are rising together today. Traditionally, traders move the gold price with the euro and contrary to the dollar. This is set to change and is doing so today.

 

Even if the Fed continues with dollar weakening policies, the E.C.B. is aiming to outdo them. The gentle slipping of both currencies together that we mentioned earlier this week is just what Draghi doesn’t want now. We are sure he discussed this with the U.S. before he came out with his statement and got the agreement of the Fed for this policy. So expect the gold price to move with the dollar for the time being.

 

On Monday, we no sales of purchases from the holdings of the SPDR gold ETF, but we did see a sale of 0.76 of a tonne from the Gold Trust. Their respective holdings stand at 810.978 tonnes and 164.41tonnes. The gold price ignored this sale.

Silver – Silver moved with gold yesterday as it focused on the positive still.

 

Regards,

 

Julian D.W. Phillips for the Gold & Silver Forecasters

 

Global Gold Price (1 ounce)

 

Today

Yesterday

Franc

Sf1,152.83

Sf1,141.19

US

$1,291.40

$1,286.65

EU

€941.97

€934.79

India

Rs.77,710.00

Rs.77,475.63

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