Silver Market Morning

Gold Today – The gold price continues to consolidate below $1,400 in New York around $1,376. In Asia and early London the gold price was lifted above $1,385 to Fix in London’s morning at $1,385.25 up $6.50 and in the euro at €1,071.429 up €1.2, while the euro was slightly changed at €1: $1.2929 slightly stronger. Ahead of New York’s opening it stood at $1,386.40 and in the euro at €1,072.40.

Silver Today – Silver closed at $22.43, in New York yesterday. Ahead of New York’s opening silver stood at $22.63.

Gold _{(very short-term)}

The gold price should again consolidate below $1,400, in New York today.

Silver _{(very short-term)}

The silver price will follow gold, with a stronger bias, in New York today.

Price Drivers

Gold & Silver – The SPDR gold ETF saw sales on Tuesday of 8.473 tonnes making 17.303 tonnes sold this week so far from the SPDR gold ETF. The selling has intensified as these sellers are focused on selling into strength. These sellers clearly feel the profit opportunities lie in the U.S. equity markets and appear to be selling for this reason.

However, Asian demand is very strong continuing to buy what they can. Gold briefly touched $1,400 in early trading from strong physical buying, most notably from China and India. Premiums for gold on the Shanghai Gold Exchange stood at $22 per ounce, as it has stayed above $20 for a fourth consecutive day. Buyers in Hong Kong and Singapore are currently paying a $5 price premium, where there are no restraints on supply, while buyers in India are currently paying $40 per ounce premium as shortages mount after the government’s preventing imports of gold except for the export of jewelry, thus starving the Indian market of gold. At these premiums smuggling becomes most profitable. This should become apparent when Dubai announces its turnovers in the months to come. Physical gold buying should remain strong below $1,600 from now on. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] We are now seeing the sum total of the world’s different gold markets in the gold price. In the U.S. gold investors myopically watch the equity markets aiming to maximize total return as their investment objective. In China and India profit is not the objective, but an investment that is a measure of value in a world where that is so frequently manipulated is. Few investors look outside their own worlds to see the global picture and in particular in gold, which reflects the sum total of the global market in its price. Today the result is the continuing outflow of gold eastwards and the steady seeping of the U.S. influence out of gold. However, this trend is constantly affected by the trading backwards and forwards by profit seekers, giving rise to the volatility in the gold price. Given this overall picture the tidal flow to gold will always, over time, dominate the short-term fluctuations in the gold price.

Silver – The silver price has recovered from its bruising at the hands of the ‘bear raid’ this week and is moving well with gold now.

Regards,

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