Silver Market Morning

Gold Today –New York closed at $1,366.3 up $56.40 cents or 4.3% on Wednesday increasing those gains at London’s opening to over $1,370 level. It then Fixed at $1,363.50 up $63.75. In the euro it Fixed at €1,005.902 up €32.75 as the dollar weakened. Ahead of New York’s opening gold was trading at $1,361.65 and in the euro at €1,004.46.

Silver Today – Silver closed at $23.09 up$1.27 or nearly 6% on Wednesday. Ahead of New York’s opening it traded at $22.90.

Gold _{(very short-term)}

The gold price will pause at overhead resistance higher up, today in New York.

Silver _{(very short-term)}

The silver price will pause at overhead resistance higher up, in New York today.

Price Drivers

Gold & Silver – Gold, like nearly all global financial markets were stunned by the announcement from the Fed as it continues the quantitative easing with no changes. The pressure from investing institutions and outside observers on markets, for a ‘tapering’ led to a near-certainty that QE would be reduced. This ignored the facts on the ground and in government that guides the Fed. In our newsletters we watch the consumer and his financial state as this is what the Fed is watching. But more importantly, our comments yesterday on the influence U.S. and London dealers can have on prices in the absence of supplies and demands was borne out by the over 4% jump in gold prices and over 5% rise in silver prices. [Enquire at: admin@StockbridgeMgMt.com to hold gold so it can’t be seized or to www.GoldForecaster.com and www.SilverForecaster.com to subscribe for our newsletters] Let’s be clear on this; there was no institutional, long-term demand for gold that pushed prices up. It was entirely short covering with some fresh long positions put in place by speculators alone. It is a reminder to readers of this daily report that they should be clear on whether they are short-term or long-term investors and act accordingly. If you are easily switched from one to the other, pain usually follows! With overhead resistance near to current levels, one must decide which direction these prices will follow in the next week, to see the longer-term picture. We are close to that decision making price.

We are clear on where we are!

The SPDR and Gold Trust gold ETF holdings remain unchanged, again, today. Institutions have not yet had time to digest the news from the Fed and react to it. We still expect that to come today and tomorrow. The total of the SPDR gold ETF holdings is at 911.119 tonnes and the holding of the Gold Trust remains at 177.56 tonnes, together totalling 1,088.679 tonnes.

Silver – The silver price proved again that it falls further than gold on the downside and rises higher than gold on the upside, but remains firmly linked to gold on the direction it takes.

Regards,

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