Silver Market Morning

Gold Today – The gold price closed at $1,306.10 up $12.80 on Wednesday, in New York. In Asia the price rose slightly, but London lifted it over $1,300 at the opening. The gold Fixing was set at $1,303.75 up $3.50 and in the euro at €953.731 up €5.405 while the euro stood at $1.3700 weaker again. Ahead of New York’s opening the gold price stood at $1,304.20 and in the euro at €955.00.

Silver Today – The silver price closed at $19.77 up 24 cents on Wednesday, in New York. Ahead of New York’s opening, it was trading higher at $19.73.

Gold _{(very short-term)}

The gold price will continue to try to tackle resistance today, in New York.

Silver _{(very short-term)}

Silver will wait for gold’s moves then follow as usual, in New York, today.

Price Drivers

The gold price remains above the 200-day and 100-day average, but below the 50-day average [at $1,311] with fundamentals pointing to higher prices while the short-term Technical picture points lower. The gold market remains ready for a strong move either way.

There were no sales or purchases of gold from the SPDR gold ETF or from the Gold Trust on Wednesday. Their respective holdings stand at 780.456 tonnes and 164.02 tonnes. We have been watching at the SPDR gold ETF for sales that may make the gold price fall but found none, so far, this week.

With Asian demand looking for ounces, not prices, prices are not being chased higher. But with this Asian stance on gold buying prevalent at the moment, SPDR gold sales simply get quickly absorbed by Asia. So it is clear that between $1,280 and $1,300 Asian demand is very robust and likely to remain so. If we compare the pattern of sales in 2013 from the SPDR gold ETF to 2014, the persistent selling has dissipated. At just above $1,300 this is drying up too, so almost through osmosis the gold price needs to go higher to attract more gold sales from the SPDR gold ETF, if indeed they are there. [For more on this, subscribe to www.GoldForecaster.com & visit www.StockbridgeMgMt.com to hold gold out of reach of potential confiscation.]

The euro is still standing weaker at $1.3714 almost unchanged from yesterday. It is not affecting the gold price right now as attention remains focused on the E.U. implementing stimulative policies in June. France is the latest economy to see growth flat-lining. It is clear that deflation is a growing danger in the E.U. For the gold price, this is positive now, because the tools to hand that will be used to tackle it will weaken the value of the euro and its exchange rate. This is gold positive.

Silver – In the Silver Institute’s report on 2013’s activities in the silver market, the most visible activity has been to see silver as a monetary/investment metal despite 54% of silver production annually being used for industrial purposes. With scrap sales falling heavily and longer-term investors buying silver in record amounts last year we see explanations of why silver has and will move so closely with the gold price. [More in the www.SilverForecaster.com]

Regards,

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