Silver Market Morning

Gold Today – Gold closed in New York at $1,488 on Friday down $73.00. After hours the gold price fell back in Asia to $1,438 down another $50. All this ahead of London’s opening. In London the gold price was Fixed in London at $1,416.00 down $132 of Friday’s Fix and in the euro at €1,083.31 down €103 on Friday’s a.m. Fix, while the euro was at €1: $1.3071. Ahead of New York’s opening it began to recover at $1,427.35 and in the euro at €1,089.33.

Silver Today – Silver closed at $26.16 down $1.16 in New York on Friday. In Asia it was dragged down to $24.45 down another $1.$1.71. Ahead of New York’s opening silver stood at $24.42.

Gold _{(very short-term)}

The gold price is subject to the continuation or cessation of SPDR gold ETF sales, in New York today.

Silver _{(very short-term)}

The silver price is subject to the continuation or cessation of SPDR gold ETF sales, in New York today.

Price Drivers

Gold & Silver – After hours on Friday and in Asia on Monday morning the ‘bear raid’ on gold and silver continued unabated as the market was asked to swallow another 22.864 tonnes of gold. In Asia frantic dealing was underway ahead of London’s opening.

This has nothing to do with whether Cyprus will sell gold or not. It has everything to do with a very well orchestrated ‘bear raid’ on the precious metals. We are reminded that Goldman Sachs issued a recommendation to go ‘short’ of gold last week. Once the selling started from the SPDR fund it became clear that a major position holder was selling. Professional position holders usually use professional dealers, so if they wanted to exit the market they would do so in a manner that achieved the best exit price. So if the price looked like collapsing they would halt selling until it stabilized. Traders and speculators would inevitably go along for the ride trying to make any moves more volatile, but would be halted by the big seller halt sales. We have seen sales of almost 200 tonnes in the last two months from the SPDR fund, whose Custodian is HSBC in New York. The selling in the last week has been that of a professional “bear raid” designed to crush the price, selling at times when the market was thin, in smaller markets like Asia or New York after hours. It is not panic selling as the selling has been in lumps of around 23 tonnes on a week then down to that amount on Friday alone. With so many paper positions on COMEX this is an ideal time to cover those positions without buying physical gold. The profits achieved would far outweigh the losses on physical gold when those sales need to be covered. Or the loser could be made to be the big position holder selling from the SPDR gold ETF. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]

Silver – Silver is collateral damage and will keep on being so until physical industrial or investment buyers enter the market.

Regards,

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