Silver Market Morning

Gold Today –New York closed at $1,402.40 up $6.10 on Monday. Asia held it there and London took it higher to $1,412.40 ahead of the Fix. The gold price was Fixed at $1,411.00 and in the euro at €1,057.80. Ahead of New York’s opening gold was trading at $1,411.40 and in the euro at €1,057.78.

Silver Today – Silver closed at $24.30 up 32 cents in New York on Monday. Ahead of New York’s opening it traded at $24.27.

Gold _{(very short-term)}

The gold price should continue to show strength, today in New York.

Silver _{(very short-term)}

The silver price should continue to show strength, in New York today.

Price Drivers

Gold & Silver – The rise of the gold price is accelerating as resistance is cleared.

It must be confusing to investors to see so much commentary conversely correlating the gold price to the U.S. economy or even to the dollar itself and positively correlated to the euro. Both the U.S. economy and the dollar are getting stronger so gold by these measures should be falling and yet, in the last month or so, gold has moved off its low at $1,180 to now over $1,411 a rise of over 27%. This effectively contradicts such measurements.

Gold and silver were engineered down by U.S. gold market institutions and are now recovering with Asian demand and short covering after the heavy downward pressure.

Upward pressures on the gold price are the impending start to the ‘gold season’ together with the growing dominance of physical Asian demand. In Shanghai the premium on the gold price is now $13 moving up from yesterday’s $12, well defining the robust demand for gold.

Indian gold import demand, if allowed to by the Indian government, will rise soon adding to the upward pressure, because it has been zero in the last month after confusing regulations were implemented.

Yesterday saw no purchases or sales of the shares of the SPDR and Gold Trust gold ETF. The total of the SPDR gold ETF remained unchanged on Monday holding its total at 920.129 tonnes and the holdings of the Gold Trust stand unchanged at 178.2 tonnes, together totalling 1,098.329 tonnes.

We are getting far too close to the start of the ‘gold season’ for short positions to be continued. In addition, today sees the end of an option period and one where ‘put options’ need to be closed or matched by ‘call options’. [We cover that in our weekly newsletter - Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]

The Indian Rupee continues to fall and is just a breath away from Rs.66 to the U.S. $ with much more to go still. We wonder just how long the Indian monetary authorities will remain quiet on this. The time for any foreign exchange ‘guidance’ is over.

Silver – The silver price is running up far faster than the gold price now.

Regards,

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