Silver Market Morning

Gold Today –New York closed at $1,312.60 up $0.10 on Friday. Asia took it up to $1,331 before London pulled it back to trade at $1,327 ahead of the Fix. It then Fixed in London at $1,325.75 up $20.00 and in the euro at €997.404 up nearly €22.00. Ahead of New York’s opening gold was at $1,326.40 and in the euro at €998.34.

Silver Today – Silver closed at $20.46 up 16 cents in New York on Friday. Ahead of New York’s opening it traded at $20.87.

Gold _{(very short-term)}

The gold price should show a positive bias today, in New York.

Silver _{(very short-term)}

The silver price will continue to follow gold favoring the upside, in New York today.

Price Drivers

Gold & Silver – Friday saw a purchase of gold into the SPDR gold ETF of 1.803 tonnes. This was the first rise in those holdings, of note, for a very long time. And the impact on the gold price after hours was sufficient to once more flip the Technical picture to the positive. But this picture has flip-flopped three times in the last month so we need to see the change of direction confirmed by this week’s action. The holdings of the SPDR gold ETF are starting the week at 911.130 tonnes and the Gold Trust still at 177.60 totalling 1,088.73 tonnes. What is of note is the strong rise because of this small purchase of gold. It also demonstrates the key role this fund is playing in the move of the gold price as the quiet times for gold continue, but only for a short time more. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]

What is becoming clearer to the world is that global economic activity really is picking up now. We tend to view boisterous enthusiastic report of minor economic numbers with raised eyebrows, but a look at the oil exports and imports from the U.S. and to China shows that economic activity is picking up firmly and on many fronts, reflecting a broader picture of global economic activity. The Eurozone has a long way to go before it convinces us it had turned the corner, but it does seem to indicate that global trade movements will assist the Eurozone to get out of its hole. Unfortunately, the southern part of the Eurozone has suffered a great deal of structural damage from which it will take decades to recover from. Having said that, you may well ask, “what has this got to do with the gold price?” Contrary to fashionable media belief, a growing economic recovery is good for the gold price because is adds to discretionary spending and saving. While the structural monetary system problems remain unresolved, investing in gold will protect wealth. Europeans continue to buy gold as does Asia, while the U.S. is reaching the limit of its gold selling capability. So what must follow? We are two to four weeks away from the start of the “gold season” now. Brace yourselves for what lies ahead!

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

Regards,

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