Silver Market Morning

Gold Today –New York closed at $1,364.60 down nearly $22.00 on Wednesday. Asia watched it slip a dollar back further to $1,345 ahead of London’s opening. London Fixed it at $1,373 down $13 and in the euro at Fixed at $1,340.25 a fall of $45.75 and in the euro at €1,008.541 down €28.781. Ahead of New York’s opening gold was trading at $1,343.40 and in the euro at €1,010.65.

Silver Today – Silver closed at $23.14 down 53 cents in New York or 2% on Wednesday. Ahead of New York’s opening it traded at $22.67.

Gold _{(very short-term)}

The gold price may show a weaker bias, today in New York.

Silver _{(very short-term)}

The silver price may show a weaker bias, in New York today.

Price Drivers

Gold & Silver – The gold market has seen a decay in the Technical picture for the price of gold and silver now. It is happening when the dollar is showing weakness again. We are aware that the swap arrangements between the U.S. Fed and the E.C.B. allows them to ‘manage’ the exchange rate, reducing fluctuations between the world’s two most dominant currencies which comprise just short of 100% of global currency reserves.

The Reserve Bank of India has asked the major gold owning Temples in India to give them the amount of gold they hold. They claim that it is solely for statistical purposes. Oh, really? The major Indian gold owners have more than enough gold to act as collateral for international loans, so are outraged by the possibility of this gold being confiscated or used for such a purpose. It is a small step to harness that gold.

The fundamentals of the gold market remain positive for the gold market with Asian demand continuing robust except from India, where pent-up demand is growing fast now. With the blocks placed on imports by the Indian government and last month’s demand down at 3.5 tonnes only, Indian demand is being prevented from reaching the gold price except through smuggling. This is on the rise and is partially being reflected in Middle East demand. However, that is cooling at the moment as the probability of ‘war inspired’ demand for gold is diminishing over Syria. Both these factors are short-term, we feel. [We cover that in our weekly newsletter - Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]

The SPDR and Gold Trust gold ETF holdings again dropped on Monday. The total of the SPDR gold ETF holdings is at 917.126 tonnes while the holdings of the Gold Trust again dropped slightly by 0.61 of a tonnes to 177.56 tonnes, together totalling 1,094.686 tonnes. Again we see thin trade perhaps painting a skewed picture of the gold price which feed over into the silver price.

Silver – The silver price despite stronger fundamentals is following the gold price.

Regards,

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