Silver Market Morning

Gold Today – Gold closed in New York at $1,470.40 in New York yesterday almost unmoved on the day before. In Asia, it held its ground even though China is still on holiday, until tomorrow. In London it was pulled back to $1,464 before recovering to fix at $1,469.5 down less than $3 and in the euro at €1,113.60 down €13 because the euro was stronger at €1: $1.3196 up 1.2 cents against the dollar. Ahead of New York’s opening it rose slightly at $1,472 and in the euro at €1,116.00.

Silver Today – Silver closed at $24.33 the same as the day before, in New York yesterday. Ahead of New York’s opening silver stood at $24.07.

Gold _{(very short-term)}

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

Silver _{(very short-term)}

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

Price Drivers

Gold & Silver – The start of Spring [May 1^st] saw record U.S. gold coins sold in April at 209,500 ounces sold, the highest since December 2009 sales of 231,500 coins. SPDR gold ETF sales still continue with yesterday’s sales at 2.01 tonnes slightly less than the day before. The pattern continues to imply the closing of a large position by an institution. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]

Today the Chinese gold markets are closed still again taking an important element of demand out of the market. Thursday sees them reopen, adding to Indian demand and central bank demand. Arithmetic tells us that if the Indian demand is sufficient by itself to keep the gold price at current levels, then a re-opened China will provide added pressure on the demand side of the market. Then we should see a positive bias to the gold price.

Yesterday we commented on the waning influence of the U.S. Markets COMEX and the leading gold ETF the SPDR fund. To complete that picture, we must temper the story by saying that if these entities repurchased the amount sold from them, then that day-to-day ability to influence the price would be restored. But with the gold they sold already in Asia and foreign central banks, they would have to drive the price higher if they do. Perhaps we will see those involved in the ‘bear raid’ that pulled the gold price down $300 institute a ‘bull’ raid next and drive the gold price up, provided the overhead resistance point have been conquered convincingly.

Silver – Silver still isn’t moving much but this time it is marking time with gold. We are convinced that silver investors are a U.S. based, completely different crowd to gold investors, who are mainly outside the U.S.

Regards,

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