Silver Market Morning

Gold Today –

The New York gold price closed at $1,367.10 up $20.10 on Wednesday in New York. Asia took it up again to $1,375 ahead of London’s opening. The gold price was Fixed in London at $1,371.00 up $16.25. In the euro, it Fixed at €982.303 up €4.834 as the dollar continued to weaken at $1.3957. Ahead of the opening in New York gold stood at $1,369.00 and in the euro at €981.05.

Silver Today

– Again, the silver price closed at $21.28 up 47 cents in New York. Ahead of New York’s opening, it was trading at $21.30.

Gold

(very short-term)

We expect the gold price to have a stronger bias, today in New York.

Silver

(very short-term)

We expect the silver price to have a stronger bias, today in New York.

Price Drivers

As we expected, the gold and silver markets came to life yesterday rising $20. Asia, once more, added to the gains seen in New York. We see these moves continuing now that resistance has been brushed aside. Resistance in the lower $1,350’s is now support. The upward direction has been confirmed. The rises are not volatile moves but solid gains once more.

A feature of the day was also the weakness of the dollar as it has fallen 0.84 of a cent, a fall of over 0.5% on the day. As you can see yesterday’s rise in the gold price was less in the euro at €5.35 only. While many may say that gold reflected dollar weakness, it moved up solidly, without exuberance, in the euro. We do expect the weakness in the dollar to exacerbate the rise in the gold price as the dollar remains on a weaker path for now. We reiterate, gold continues to rise in all currencies.

There were small sales out of the SPDR gold ETF [GLD] of 1.5 tonnes but none from the Gold Trust, on Wednesday, which left their respective holdings at 811.198 tonnes and 165.14 tonnes. The sale was too small to impact the gold price. We regard such sales as a normal ‘wave action’ which do not imply a resumption of a trend of sales from the funds in the future. There will always be some ‘stale bulls’ closing out of positions, but we believe that long-term holders will stay in these funds. Outside of the U.S. there have been very few sales from gold ETFs during the last two years. They too, hold their gold as part of very long-term positions.

There remain only two weeks before the budget is broadcast in India. If restrictions on gold imports are eased a much bigger element of demand will flow into international gold markets. What is now a rising uptrend in the gold market will accelerate thereafter through the rest of the year. [For more on this, subscribe to www.GoldForecaster.com and www.SilverForecaster.com and

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Silver –

The silver price is running ahead faster than the gold price. We expect this to continue.

Regards,