Silver Market Morning

Gold Today – The gold price closed at $1,293.1 down $2.50 on Friday, in New York. In Asia the price rose $3.6 ahead of London’s opening, but London took it over $1,300. The gold Fixing was set at $1,301 up $7.25 and in the euro at €948.666 up €5.493 while the euro stood at $1.3714. Ahead of New York’s opening the gold price stood at $1,300.2 and in the euro at €947.70.

Silver Today – The silver price closed at $19.36 down 12 cents on Friday, in New York. Ahead of New York’s opening, it was trading higher at $19.57.

Gold _{(very short-term)}

The gold price will consolidate with a positive bias today, in New York.

Silver _{(very short-term)}

The silver price will consolidate with a positive bias today, in New York.

Price Drivers

The inevitable move in any price pattern is that it if is in an upward trend and it moves sideways, it must break the upward trend. If it is in a downward trend and it moves sideways, it must break that trend and turn up at some point. Both gold and silver are doing that while the metals are in a downward trend currently. Support to these price moves is being supplied by the 200 and 100-day average below $1,300. The 50-day average is dropping and is now at $1,309. Eventually the 50-day average drops down to the lower levels and a strong move is forced onto the market. We are very close to that now.

There were sales of 0.268 tonnes of gold from the SPDR gold ETF but no activity in the Gold Trust on Friday. Their respective holdings now stand at 781.985 tonnes and 164.02 tonnes. Much larger sales are needed from this fund if the gold price is to fall convincingly. But will they come?

The future of the dollar as the sole global reserve currency has been correctly painted as limited, in view of the rise of the Yuan and the Chinese economy. This week could see a massive deal done on Russian gas to China, which will be done in either the Yuan or the Ruble. This will be the first time a significant energy deal will not be done in the U.S. dollar, if it happens. The significance for the dollar is that alternative currencies have to be included in these countries’ reserves. As it is, we are seeing Russia protect its reserves by moving them out of the reach of the U.S. where possible, in view of the crisis in Ukraine. With the Eurozone’s dependence on Russian gas, will the E.U. eventually have to pay Rubles for it? If the U.S. increases its ire against Russia over the Ukraine, that could be a possibility? [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 almost unchanged on Friday’s level of $1.3715.

Silver – The silver price has been keen to recover when gold rises even slightly. As such, silver investors and traders remain positive on both silver and by extension on gold. [More in the www.SilverForecaster.com]

Regards,

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