Silver Market Morning

Gold Today – The gold price closed at $1,311.60 up $5.20 in New York. In Asia and early London, prices rose further to $1,319.00 as the euro held those levels as the euro held around $1.3383. The gold price was Fixed at $1,317.50 up $15.50 and in the euro at €984.017 up €10.486, while the euro was stronger at $1.3389. Ahead of New York’s opening, gold was trading at $1,317.20 and in the euro at €983.46 pointing to a stronger gold price in New York.

Silver Today – The silver price closed in New York at $19.96 down 8 cents. Ahead of New York’s opening it was trading at $20.10.

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

Silver _{(very short-term)} We expect silver to continue to consolidate with a positive bias, in New York today.

Price Drivers

There were no sales or purchases of gold from the SPDR gold ETF or from or to the Gold Trust on Thursday. The holdings of the gold ETFs stand at 797.654 tonnes in the SPDR gold ETF and at 165.93 tonnes, in the Gold Trust.

The rise in the gold price appears to be in response to more and more analyst in the U.S. believing that gold now has a strong base at $1,300, but a bigger rise was seen in Asia. The tone of the market has improved as we move to the start of the ‘gold season’. We expect short covering to continue in the U.S. In the days ahead as global stability degenerates, we see gold taking a greater share of individual and institutional portfolios.

A pattern is emerging on a daily basis of the euro being strong in Europe’s day and weakening in the U.S. day. But the overall trend of the euro remains down. The gold price in the euro continues to rise faster than in the dollar as a result. We see this pattern continuing.

Very little emerged from the E.C.B. meeting yesterday. Mario Draghi gave indications that he will embark on a Eurozone style of Q.E., if the present negative picture of the Eurozone economies and inflation continues. He acknowledged the potential damage Russian sanctions can do, but still did nothing. The E.U. governments remain silent and inactive. We see deflation impacting the Eurozone in the next few months to the extent that monetary policy will not be able to correct without damaging the credibility of the euro. We see Europeans hedging against a weaker euro by buying gold. This is gold positive! [Subscribe www.GoldForecaster.com – ensure your gold will not be confiscated and you not penalized -see www.Stockbridgemgmt.com ].

Silver– The silver price remains restrained and we do expect a ‘shunt effect’ in the silver price as gold continues to rise. [www.SilverForecaster.com]

Regards,

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