Silver Market Morning

Gold Today –New York closed at $1,384.90 down $28.90 on Friday after which Asia lifted it to $1,398, before London took it over 1,400. It then Fixed lower at $1,396.75 and in the euro at €1,072.61 down €13 while the euro was €1: $1.3022. Ahead of New York’s opening gold stood at $1,395.50 and in the euro at €1,073.38.

Silver Today – Silver closed at $22.18 down 56 cents in New York on Friday. Ahead of New York’s opening silver stood higher at $22.53.

Gold _{(very short-term)}

The gold price will see a small bout of consolidation then a stronger bias, in New York today.

Silver _{(very short-term)}

The silver price will see a bout of consolidation then a stronger bias, in New York today.

Price Drivers

Gold & Silver – Friday saw a tiny amount of gold sold from the SPDR gold ETF of 0.013 of a tonnes of gold, but perhaps this was enough to spook the market into thinking more was to come. This allowed the gold price to sink back to support at $1,384 on Friday. But Asian demand continues to pressure physical markets and the price quickly rose back to $1,400 just ahead of London’s opening. Certainly, the mood is changing in the gold market now and if no real selling comes out of the SPDR gold ETF this week, it will point to the cessation of those sales. This will tip the supply/demand balance. This week will also show us whether we are back over the $1,400 level to stay or not. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] The present gold market scene tells us that we will see volatile markets in the short-term in both gold and silver.

Speculators raised their net-long position by 35% to 48,096 futures and options by May 28, U.S. Commodity Futures Trading Commission data now shows. Most of the gain came from a drop in short positions, which reached a record the previous week. They are starting to follow George Soros positioning themselves for a rise in prices now.

April silver and gold price lows were reflected in the frantic buying in April, but, as prices rose into May some of the steam went out of the market. This was reflected in the sales of both silver and gold coins figures reported this last weekend:

- May sales of American Eagle gold bullion coins fell 67% from April, to 61,000 ounces in May. American Eagle one-ounce gold bullion coin sales were 187,500 ounces in April 2013. Total American Eagle gold bullion coin sales of all denominations for May 2013 were 70,000 ounces.

- Sales of the American Eagle silver bullion coins for May fell 15% from April to total 3,458,500 ounces in May 2013 down from April’s sales of 4,087,000 ounces.

Silver – We expect silver prices to have a good week following gold as the mood in the silver market is changing alongside that of gold.

Regards,

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