Silver Market Morning

Gold Today – Gold closed in New York at $1,553.10 up $5 on yesterday, as the price fall slowed then turned. In Asia and London it traded slightly lower to $1,550 ahead of the Fix in London which was set at $1,552.75 up $7.50 and in the euro at €1,201.354 down €6 while the euro was at €1: $1.2925 up 1.25 cents. Ahead of New York’s opening it traded at $1,554.40 and in the euro at €1,202.91.

Silver Today – Silver closed at $26.87 in New York again. Ahead of New York’s opening silver stood at $26.97.

Gold _{(very short-term)}

Gold will consolidate around long-term support, in New York today.

Silver _{(very short-term)}

Silver will consolidate around long-term support, in New York today.

Price Drivers

Gold & Silver – Another 0.6 of a tonnes of gold was sold out of the SPDR gold Exchange traded fund after yesterday’s sales of 2.57 tonnes of gold and 13.78 tonnes sold on Wednesday. But this time the gold price did not fall, but began to consolidate around $1,550. It is more than likely that traders and speculators are taking note of this too and know the market is oversold. Today will confirm if support is at $1,550.

With the Yen set to tumble [At Y110 to the dollar not so long ago many expect the yen to tumble further] we expect Japanese investors to turn to the dollar and to gold as a better place to park wealth as the Yen falls.

Chinese holidays allowed that demand to stay out of the picture until now. Indian demand sees Rupee prices as the lowest for some time and the marriage season resuming again. This demand should jump soon. Certainly scrap selling may well have been discouraged by falling prices. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] In addition, the offer of 15 plus tonnes of gold on top of the usual supply may have proved too tempting for central banks.

So today’s demand supply numbers are very different from yesterday’s.

European stocks fell for a third day and bond yields from France to Austria slid as retail sales declined. U.S. equity-index futures also dropped before the monthly payrolls report. The ongoing failure of Q.E. to stimulate real growth [despite the constant stream of the positive spin on data] is of great concern. Is the mood that has seen markets slip across the developed world changing? Is it deflation that is countering Q.E.? The scene is reminiscent of late 2007 and 2008 but this time at national levels, not just in banking.

Silver – Silver is on long-term support while demand is robust on the industrial and investment fronts. If gold has stopped falling, so has silver.

Regards,

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