Silver Market Morning

Gold Today – The gold price closed at $1,307.40 up $15.00 on Friday in New York. In Asia and early London, prices slipped back to $1,304. The gold price was Fixed at $1,305.00 up $12.25 and in the euro at €971.199 up €11.474, while the euro was slightly weaker at $1.3437. Ahead of New York’s opening, gold was trading at $1,304.50 and in the euro at €970.72.

Silver Today – The silver price closed in New York at $20.74 up 37 cents. Ahead of New York’s opening it was trading at $20.63.

Gold _{(very short-term)} We expect gold to consolidate, with a slightly positive bias, in New York today.

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

Price Drivers

There were no sales or purchases to or from the SPDR gold ETF, but there was a small purchase of 0.6 of a tonne of gold into the Gold Trust on Friday. The holdings of the gold ETFs stand at 801.844 tonnes in the SPDR gold ETF and at 165.66 tonnes in the Gold Trust. [Subscribe www.GoldForecaster.com – ensure your gold will not be confiscated and you not penalized -see www.Stockbridgemgmt.com ].

Despite further attempts to crush the gold price by further short sales of gold on COMEX [no physical sales] the gold price jumped back up through the $1,300 level. Technical support held below $1,300 and Asian demand continued to provide physical support to the gold price. But Asian support is very different to developed world support in that it is not influenced by rising prices only falling ones.

The euro continues to decline but is not taking gold with it, further confirmation that the gold price is strong in all currencies and breaking its supposed link to the euro. The euro currently stands at $1.3436 down from last week’s $1.3448. We have to emphasize that the gold price is now a global price against all currencies, not only moving contrary to the dollar.

The week starts with stability across the globe being shaved slightly once again, last week. A glance back in history shows us that major events are the culmination of a slow build-up of forces that explode on us at some point. During the build-up the public face of government is usually one of either silence or denial. Just before World War 11 began the Prime Minister of England shouted, “Peace in our time!” on his return from talking to Hitler. We see such a build-up in the monetary world, well on the way, in our time.

We forecast that 2014 will be the quietest year in terms of peace, stability and certainty for the next ten years. There is so little out there in terms of both efforts and structures that tell us that these factors will get better. Consequently, the gold price will reflect this, medium to longer term.

Silver– The silver price bounced back vigorously reflecting it is moving with gold on the monetary/investment front and remains relatively unaffected by its own fundamentals, particularly industrial use. We see that industrial demand is vigorous, but has not affected the silver price by itself for years now. [www.SilverForecaster.com]

Regards,

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