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Silver Market Morning

Gold Today – Gold closed higher at $1,575.40 and in London’s early morning rose to $1,577.80. The euro was slightly weaker in London at €1: $1.2539 50, cents lower. It Fixed at $1,573.75 and in the euro at €1,255.666. Ahead of New York’s opening gold stood at $1,572.30 and in the euro, €1,254.93 while the euro was at €1: $1.2529. [To follow our weekly commentary, please subscribe to our newsletters at and at].

Silver Today - Silver in London rose to $28.55. Ahead of New York’s opening at $28.25.

Silver (very short-term)

Silver should show a weaker bias, today in New York or surprise with a strong move, either way.

Price Drivers

Gold – In quiet global markets over the last few weeks, gold in Europe and Asia was firm. This reflected the solid underlying tide in the gold and silver markets. But with volumes on the light side in the open market traders carry undue influence on prices. So today we expect to see the market change from steadily, quietly, firm to a much more volatile scene as developed world traders push markets both ways.

You may well ask, if China and Russia are buying gold in large quantities for their reserves, why doesn’t this reflect in a more volatile gold price?

The reason is that both these countries primarily purchase locally produced gold direct from their miners, before it reaches the market place. Thus it shows itself simply as a drop in supply and not a demand factor. Where non-gold producing nations are buying on the open market their influence is to remove stock from the market, further narrowing supplies.

It’s demand in the ‘open market’ itself that moves prices. With only 5% of COMEX deals involving the movement of physical bullion the direct impact of these speculators and traders is far less than people believe.

The Indian Rupee keeps weakening and now stands at Rs.55.84 from Rs.55.1975. This is now raising gold and silver prices in India.

Silver – Silver is waiting for New York to open before moving properly. We may well see the silver price strongly influenced out of China soon, as silver futures are dealt in Shanghai. The broadening of the market and increased liquidity from there may exert a positive influence on the price too!


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

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