Silver Market Morning

Gold Today –New York closed at $1,325.30 on Friday a sharp turn down from the day before. Asia and London held it there ahead of the Fix. It then Fixed at $1,321.75 down $41.75 from its weekly peak. In the euro it Fixed at €978.712 down €27 from its weekly peak as the dollar remained at weak levels. Ahead of New York’s opening gold was trading at $1,321.00 and in the euro at €977.76.

Silver Today – Silver closed at $21.74 down $1.35 on the high of last week. Ahead of New York’s opening it traded at $21.65.

Gold _{(very short-term)}

The gold price has moved back to consolidate with a stronger bias, today in New York.

Silver _{(very short-term)}

The silver price has moved back to consolidate with a stronger bias, in New York today.

Price Drivers

Gold & Silver – Once again the gold price, short-term, is in the hands of traders as shown by the fall on Friday. But we expect to see broader market influences come into play and to precipitate a two-way consolidation pattern ahead of breaking out strongly one way or the other. Again its ‘relationship’ with the dollar is suspect, as the dollar remains at weakened levels.

Investors may well ask, “If this is the start of the gold season, why isn’t the gold price shooting up?” We have been looking at this carefully and are preparing a series of articles that will explain why. What is clear is that, an influence that does not reflect the market fundamentals cannot dominate the scene for long. But it is critical that investors should understand the mechanics of what makes the gold price behave as it does. We hope this series will clarify this. Subscribers will have full access to this series. [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]

What is very clear to us, is, if the gold market were a ‘perfect’ market and reflected its fundamentals the history of the gold price would be completely different! So how is it not perfect?

The SPDR and Gold Trust gold ETF holdings fell slightly last week, but certainly not enough to cause a downward move in the gold price. The U.S. economy is not growing as strongly as was thought before the Fed’s announcement, so institutions are re-evaluating the way forward. This translates into a confused set of financial markets this week.

The total of the SPDR gold ETF holdings fell by 0.925 of a tonnes last week leaving it at 910.194 tonnes and the holding of the Gold Trust remains at 177.56 tonnes, together totalling 1,087.754 tonnes.

Silver – The silver price reflects a greater volatility than the gold price because it has a narrower less structural market, but remains firmly linked to gold on the direction it takes.

Regards,

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