Silver Market Morning

Gold Today – The gold price closed at $1,319.60 up $21.10 on Thursday in New York. In Asia and early London, prices retreated to $1,312 ahead of London’s opening. The gold price was Fixed at $1,310.25 up $7.50 and in the euro at €968.404 up €5.757, while the euro was slightly weaker at $1.3530. Ahead of New York’s opening, gold was trading at $1,311.30 and in the euro at €969.46.

Silver Today – The silver price closed in New York at $21.14 up 39 cents. Ahead of New York’s opening it was trading at $20.95.

Gold _{(very short-term)} We expect gold to consolidate in New York today.

Silver _{(very short-term)} We expect silver to consolidate in New York today.

Price Drivers

There were sales of 2.694 tonnes of gold from the SPDR gold ETF, a repeat of the selling on Wednesday [from the same seller?] but none from the Gold Trust on Thursday. The holdings of the gold ETFs stand at 803.34 tonnes in the SPDR gold ETF and at 165.06 tonnes in the Gold Trust. This selling was no a large amount relative to the purchases on Monday [8+ tonnes] and occurred when the massive short sellers on COMEX took fright and closed positions taking the gold price up $21.00. As you know we were expecting this to happen. [Subscribe www.GoldForecaster.com – ensure your gold will not be confiscated and you not penalized -see www.Stockbridgemgmt.com ].

This is an important lesson that needs to be learned by gold and silver investors. No matter how large the shorting on COMEX is, unless it is accompanied by significant sales of physical gold on physical markets, it will have only a temporary impact on prices, at best.

It did coincide with the shooting down of the Malaysian airline, an event that continues to shock the world. That shock reflects a gear-shift in investor’s attitudes to world events as they suddenly come so close to us all. The watching from a safe ‘comfort zone’ has changed as this awful ‘collateral damage’ hit innocent people distant from the issues. It brings home the point that the dark future before the globe [we only comment on the monetary front as it impacts gold and silver] is coming closer. With gold and silver being real money in the darkest of times we see demand for them extending from individual investors to governments and institutions in the foreseeable future as uncertainty and instability rises.

However, of itself we did not see buyers enter the market because of the tragedy.

The technical picture remains positive for gold and silver.

The euro appears to be stabilizing in the very short-term. We note though that the E.U. wants it lower but, if they follow the G7 guidelines, they won’t be seen in the forex markets making it go lower. The euro currently stands at $1.3529 almost unchanged on yesterday.

Silver– Silver recovered almost 2% a better performance than gold showing how robust investment demand for silver continues to be. [www.SilverForecaster.com]

Regards,

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