Silver Market Morning

Gold Today – Gold continued to move higher, closing at $1,464.3 up $34 in New York yesterday. In Asia it continued to rise back to $1,475.35 ahead of the Fix. The Fix was set at $1,462.25 and in the euro at €1,123.425 while the euro was at €1: $1.3016. Ahead of New York’s opening it slipped slightly at $1,463.75 and in the euro at €1,126.09.

Silver Today – Silver closed at $24.3 up $1.12 on yesterday’s close, in New York. Ahead of New York’s opening silver stood at $24.01.

Gold _{(very short-term)}

The gold price will continue to consolidate with a stronger bias, in New York today.

Silver _{(very short-term)}

The silver price will continue to consolidate with a stronger bias, in New York today.

Price Drivers

Gold & Silver – The selling of gold from the SPDR gold ETF continued in New York yesterday but at a slower pace as another 3.44 tonnes was sold. This makes a total of 44.44 tonnes sold this week. Asia continued to buy as you can see above, taking prices up $11 overnight. But at the Fix we saw a pullback to $1,462.25 $13 lower than Asia’s close. So, while the Technical picture tells one story [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] the market scene tells another. If as it seems, sales from the SPDR gold ETF are slowing to a stop, the extra supply the gold market has been enjoying in the last fortnight is curtailing. But Asian demand remains unabated as even after the lat $130 rise of this week, prices remain at bargain basement level in Asian eyes. The fall in the prices changed the cautious mindset there to an enthusiastic rush for gold across the globe. As we approach $1,500 again, will we see the market mood change to accommodate another ‘bear raid’? We suspect not, because the strength of the reaction from the rest of the world was very strong on the demand side, whereas those institutional U.S. sellers have sold already. One of the factors that accommodated the selling of gold was the belief in some minds that U.S. growth means lower gold prices. So, today the big question in investor’s minds is, “Was U.S. GDP growth at 3% or 1% in the first quarter of 2013?” The answer will move global markets today and possibly gold prices? Certainly the gold and silver price will show how sensitive to such figures they are today.

With Asian demand and central bank demand high, we wonder just how much of the remaining 1090 tonnes of gold remaining in the SPDR gold ETF is likely to be sold. With 20% of the gold already gone, we are of the opinion that this has shaken out the weak holders, but we are cautious because this may not be the case?

Silver – Silver is feeling the “shunt” effect now with a nearly $1.23 rise yesterday.

Regards,

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