Silver Market Morning

Gold Today –New York closed at $1,310.30 down $12.50 on yesterday. Asia saw sales from the U.S. which dropped it to $1,287 ahead of London’s opening. It then Fixed in London at $1,285.75 and in the euro at €972.359 down €27.85. Ahead of New York’s opening gold was at $1,289.00 and in the euro at €973.32.

Silver Today – Silver closed at $19.66 down 16 cents in New York yesterday. Ahead of New York’s opening it traded at $19.47.

Gold _{(very short-term)}

The gold price will wait to see if the SPDR sells more gold today, in New York. If not it will rise.

Silver _{(very short-term)}

The silver price will cautiously follow silver, in New York today.

Price Drivers

Gold & Silver – The gold and silver market looked strong through the day but in thin trade. Then in came sales from the SPDR gold ETF in size, which knocked the price down to $1,310. We assume the as HSBC is the Custodian, they chose to sell this gold in Asia, which again in thin trade pushed the gold price down to $1,287. The sales from the SPDR gold ETF were 6.31 tonnes which left the total of the SPDR gold ETF and the Gold Trust at 1,099.90 with the SPDR gold ETF at 921.045 tonnes, while the Gold Trust gold holding stood at 178.85 tonnes. We now need to wait for a full week or fortnight of no sales from the SPDR gold ETF before we can assume that they have halted. This will be very positive for the gold price, but until then the gold and silver markets will be cautious about the gold and silver prices. It is difficult not to conclude that the way these sales are being handled is either unprofessional or aimed at restraining the gold price and pushing it back to a downward path. Such tactics would be used in support of existing short positions in the Futures and Options markets, to assist in making them profitable. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] A case can be made for the sale by an institution wanting to get out of gold and into equities, for short-term considerations. What is becoming clear is that some fundamental changes are taking place in the U.S. gold and silver markets. The news that the banks, that were part of the ‘bear-raid’ on gold that knocked it down so far in the last four months, are getting out of the gold market is a surprise, but a logical move after their gold stocks were decimated so decisively in that raid.

We expect precious metal markets to remain volatile and surprising!

Silver – The silver price continues to follow gold, cautiously.

Regards,

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