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Silver Market Morning: Mar 22 2017 - Gold holding new gains!

Julian D. W. Phillips
|
Wednesday, March 22nd

Gold Today New York closed at $1,244.60 yesterday after closing at $1,234.60 on the 20th March. London opened at $1,247.00 today.

 

Overall the dollar was weaker against all global currencies early today. Before London’s opening:

 

  - The $: € was weaker at $1.0802: €1 from $1.0793: €1 yesterday.

- The Dollar index was weaker at 99.77 from 100.06 yesterday.

- The Yen was stronger at 111.48:$1 from yesterday’s 112.86 against the dollar.

- The Yuan was stronger at 6.8845: $1, from 6.8968: $1, yesterday.

- The Pound Sterling was stronger at $1.2472: £1 from yesterday’s $1.2380: £1.

 

Yuan Gold Fix

Trade Date

Contract

Benchmark Price AM 1 gm

Benchmark Price PM 1 gm

2017 3 22

2017 3 21 2017 3 20

SHAU

SHAU

SHAU

/

275.97

276.75

/

275.98

276.93

$ equivalent 1oz @ $1: 6.8845

$1: 6.8968

$1: 6.9051

 

/

$1,244.58

$1,246.60

/

$1,244.62

$1,247.41

 

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle East eastward metric measurements are used against 0.9999 quality gold. [Please note that the 0.5% difference in price can be accounted for by the higher quality of Shanghai’s gold on which their gold price is based over London’s ‘good delivery’ standard of 0.995.]

 

At the close in Shanghai today, the gold price was trading at 278.50 Yuan, which directly translates into $1,258.23. But allowing for the difference of gold being traded this equates to a price of $1,253.23. This is more than $13.63 higher than the New York close and $6.23 higher than London.

 

The gold price in Shanghai jumped 2.50 Yuan today, but the rise was greater when translated into the weak dollar. As you can see, London and New York are trying to catch up with Shanghai as the price differentials narrow. That’s why the concept of a ‘Chinese gold price premium’ distorts the reality of what’s happening. China is no longer a distant sub-market of London, while India continues to be so, as that country with its gold taxes and political interference cannot function nearly as well as Shanghai with its highly developed, huge, physical market. As we have pointed out in the past, Shanghai has become the world’s gold hub. It would therefore be more accurate as description to describe New York and London trading at a ‘discount’ to Shanghai.

 

LBMA price setting: The LBMA gold price was set today at $1,246.10 up from yesterday’s $1,232.05.

 

The gold price in the euro was set at €1,154.76 after yesterday’s €1,139.94.

 

Ahead of the opening of New York the gold price was trading at $1,245.45 and in the euro at €1,154.58 At the same time, the silver price was trading at $17.49.

 

Silver Today –Silver closed at $17.52 at New York’s close yesterday against $17.42 on the 20th March. Silver prices continue rising but not quite as fast as gold’s dollar prices.

 

Gold (very short-term) The gold price should hold its gains, in New York today.

 

Silver (very short-term) The silver price should hold its gains, in New York today.

 

Price Drivers

Gold is responding to a weak dollar, but also to buying by the U.S.

 

Chinese demand kicked in overnight too, helping the gold price rise. China continues to dominate gold prices pulling gold prices higher in the developed world.

 

The wave of euphoria after the election of Trump in the U.S. and world markets is faltering. U.S. equity markets are pulling back as the promised ‘firing from the hip’ at the establishment alongside huge tax cuts and infrastructure spending, have not yet happened. With President Trump finding it hard going to do away with Obamacare, the potential hurdles that lie ahead look like slowing down his program and markets are responding to that. The dollar is slipping through support and may well go much lower.

 

Gold ETFs – Yesterday saw purchases of 4.145 tonnes from the SPDR gold ETF but no change in the Gold Trust. Their respective holdings are now at 834.396 tonnes and 197.82 tonnes.

 

Since January 4th 2016, 231.186 tonnes of gold have been added to the SPDR gold ETF and to the Gold Trust. Since January 6th 2017 21.13 tonnes have been added to the SPDR gold ETF and the Gold Trust.

 

Regards,

 

Julian D.W. Phillips

 

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance To ensure you can benefit from the future higher gold prices we will see then, you need to hold it in a manner that makes sure it can’t be taken from you. Contact us at admin@stockbridgemgmt.com to buy physical gold in a way that we feel, removes the threat of it being confiscated. We’re the only storage company that offers that!

 

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Global Gold Price (1 ounce)

 

Today

Yesterday

Franc

Sf1,236.79

Sf1,227.60

US

$1,245.45

$1,233.15

EU

€1,154.58

€1,141.07

India

Rs.81,538.37

Rs. 80,481.53

   
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