Silver Market Morning

Gold Today – The gold price closed at $1,319 up $1.50 on Tuesday in New York. In Asia prices pulled back to $1,312. In London, the Fix was set at $1,312.00 down $11.00 and in the euro at €964.422 down €7.315, while the euro stood weaker at $1.3604. Ahead of the opening in New York the gold price was trading at $1,313.70 and in the euro at €965.60.

Silver Today – The silver price closed at $20.92 up a up 4 cents, in New York. Ahead of New York’s opening, silver was trading at $20.85.

Gold _{(very short-term)}

Gold should consolidate, in New York today.

Silver _{(very short-term)}

We expect silver to consolidate, in New York today.

Price Drivers

There were no sales or purchases of gold into the SPDR gold ETF or the Gold Trust in the U.S. on Tuesday. The holdings of the gold ETFs stand at 785.016 tonnes in the SPDR gold ETF and at 163.20 tonnes, in the Gold Trust.

The fall in the gold price in Asia and London, was not on physical sales. In thin trading the impact of dealer and speculator moves has a greater effect than in a busier market. We see it as an easily changed picture when volumes pick up. Dealers and speculators quickly turn back to moving gold in the opposite direction to the dollar. The euro has weakened by half a cent from its high, but this is not a significant move. We see the euro targeting somewhere around $1.20 eventually, reflecting the aim of the E.C.B. who want to see a much weaker euro. However, we do not expect gold to move with the euro, but as it has done of late to break away from that relationship and move higher in the euro when the euro does fall. In essence today’s move we see as the normal ebb and flow of a market.

Little has occurred in the last day to impact gold & silver prices. However, we cannot emphasis enough just what a ‘sea-change’ the Middle East conflagration has and will have on oil, gold and silver prices over time. What is clear already despite the positive press surrounding Kerry’s visit to the Middle East is that the U.S. has lost control of the situation there. Pleading with the Kurds to support Baghdad is unlikely to succeed as they has their own interests, which have been suppressed for so many decades, is an opportunity to secure their own state and control the oilfield in and around them. We doubt very much if they will give this up. Once ISIS has consolidated its hold on the North and West of Iraq, they will advance on the rest of the country. The resulting $140+ oil price will cause tremendous damage to economies world-wide. [Subscribe www.GoldForecaster.com - see www.Stockbridgemgmt.com to protect yourself from penalties from holding your gold overseas when it is to be confiscated].

Silver – Silver has risen over 10% since the change in trend and promises more! [www.SilverForecaster.com]

Regards,

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