• Gold: 1,424.70 -0.09
  • Silver: 16.34 -0.06
  • Euro: 1.121 -0.000
  • USDX: 97.282 0.131
  • Oil: 56.24 0.62

Silver Market Morning

Julian D.W. Phillips
Thursday, May 10th

New York closed at $1,591.00. Asia lifted the price up to $1,594 early in London’s morning. The euro stood at €1: $1.2965 leaving gold in the euro at €1,229.46. The Fixing in London today was set at $1,590.00 up $8 and in the euro at €1,228.368 up €7. Ahead of New York’s opening it started to slip again and stood at $1,587.65 and in the euro, which also continued to slip, €1,227.41 while the euro was at €1: $1.2935.


Silver Today - Silver closed at $29.20 in New York, the recovered slightly to $29.30 in early London time. Ahead of New York’s opening it stood at $29.00.


Silver (very short-term)


Silver will again prove volatile again and look for a ‘floor,’ level either way, in New York today.


Price Drivers

Gold – Short-term traders still held control of the gold price, but there is evidence that investors, be it central banks, or Chinese demand came in to pick up bargain offerings at prices below $1,600. As these investors are not price chasers, prices did not bounce vigorously. This is the changed shape of strong demand now.


As 10-year Spanish bonds remain at unsustainable interest rates above 6% we hear that a leading Spanish Bank has been partially nationalized as it is overwhelmed by bad debts and a stagnant property portfolio. We expect Regional governments to also, in time, report excessive debt that could precipitate requests for bailouts from the E.U.


New elections are now expected in June in Greece, as a new government remains out of reach there. Tranches of bailout funds are expected to be withheld until the way forward is clarified. A shift of power from creditor to debtor may occur shortly, as the creditors stand to lose so much if Greek defaults and walks away from the E.U. So expect some precipitous negotiations in June!

Without inter-central bank support for the euro we would have expected the euro to be closer to the €1: $1.20 level than the current €1: $1.30 level now.


Silver – The silver price recovered in London to $29.15 but has not bounced enough to inspire confidence yet.


Now for the short-term still, both metals are showing a downward direction. Has silver found a floor? Is it in danger of collapsing? [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]




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

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