Silver Market Morning

Gold Today –On Friday the gold price in New York rose to close at $1,247.10 with Asia lifting it to $1,251.55. The dollar weaker at $1.3673: €1 ahead of London’s opening. In London the gold price was Fixed at $1,246.00 up $13.75 on Friday. In the euro it, Fixed at €911.885 up nearly €5.30. Ahead of the opening in New York gold stood at $1,246.45 and in the euro at €912.08. The dollar stood at $1.3666: €1

Silver Today –The silver price rose in New York 54 cents to $20.13 on Friday but rose in Asian trade to $20.19 before London’s opening. Ahead of New York’s opening, it was trading at $20.07.

Gold _{(very short-term)}

The gold price should have a weaker bias today, in New York, but could surprise to the upside.

Silver _{(very short-term)}

The silver price should have a weaker bias today, in New York, but could surprise to the upside.

Price Drivers

Friday saw no sales from the SPDR gold ETF or the Gold Trust gold ETF, whose holdings stand at 793.121 tonnes at 161.83 tonnes respectively. As we said last week, when there are no sales from these funds, now, the gold price tends to rise.

We are now at the top of the gold and silver trading ranges. If we see prices hit $1,260 the short-term will be very positive for precious metal prices. Certainly, at the moment, the pressure is upwards, but our daily forecast allows for more consolidation.

U.S. markets were surprised and disappointed by the jobs report on Friday. But the equity market is strong so the report did not hurt confidence but weakened the dollar half a cent. But we would be naïve to believe that gold rose because of that report. If a serious investor feared that the economy was turning down he would have bought gold. No sales and no purchases from the U.S. based gold ETFs does not imply a change in U.S. views on gold. It is more likely that U.S. selling of gold is nearing exhaustion and is close to complete. The next two weeks will either confirm or deny that. To us this is a key facet of the gold market now. [Find out more from www.GoldForecaster.com and www.SilverForecaster.com to subscribe to our newsletters and visit www.StockbridgeMgMt.com to hold gold so it can’t be seized] Please bear in mind that the moves we are seeing in the gold market are not large enough to read anything major into them. We are still waiting for a clear direction to be given by both gold and silver.

Silver – The Silver Trust has seen sales of nearly 1,000 tonnes in the last month. We believe this was tied to U.S. investor’s fears of ‘tapering’. Now that we have seen the emphasis of the Fed shift to interest rates, we see these sales slowing or turning to the buy side, as silver investors continue to focus on the monetary aspect of silver by following the gold price. We see gold and silver prices continuing to move together as they have done for the last few years.

Regards,

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