Silver Market Morning

Gold Today – The gold price closed at $1,309.10 down $2.30 cents on Monday in New York. In Asia on Tuesday gold prices eased slightly to $1,307.50 ahead of the opening in London. The euro began to fall again and stood at $1.3368. The gold price was Fixed at $1,311.00 up $2.75 and in the euro at €982.759 up €5.432, while the euro was weaker at $1.334. Ahead of New York’s opening, gold was trading at $1,311.80 and in the euro at €983.43.

Silver Today – The silver price closed in New York at $20.04 up 7 cents. Ahead of New York’s opening it was trading at $20.05.

Gold _{(very short-term)} We expect little movement in gold as we wait for a strong move either way, in New York today.

Silver _{(very short-term)} We expect little movement in silver as we wait for a strong move either way, in New York today.

Price Drivers

There were no sales or purchases into or from the SPDR gold ETF or the Gold Trust on Monday. The holdings of the gold ETFs stand at 795.859 tonnes in the SPDR gold ETF and at 165.93 tonnes, in the Gold Trust.

As is usual with trading patterns in gold and silver, trading patterns come to a ‘head’ at some point in time when the markets move to a balance between demand and supply. We are there now but the market remains thin. While this allows speculators to try to make these prices jump the way they want, a change in genuine demand or supply will decide the next direction. So we expect to see the gold and silver prices to break out of their sideways movement of the last few weeks, shortly. With the start of the gold season imminent, we may have to be patient for a little while longer before we see this happen.

Markets remain deceptively calm still as underlying fundamentals are changing structurally on the economic, financial and geo-political fronts substantially. Any one of theses changes could produce a shock that triggers volatile markets in many sectors, including gold and silver. How long is the ‘quiet before the storm’? That’s impossible to say, but you can be sure the storm will arrive soon. We believe the ‘shock’ will be gold-positive. [Subscribe www.GoldForecaster.com – ensure your gold will not be confiscated and you not penalized -see www.Stockbridgemgmt.com ].

You will note how the Swiss Franc has been weakened on purpose to keep close to the euro, taking away its use as a ‘safe haven’. The Indian Rupee likewise has weakened in the last few days too raising the gold price there. Gold in these, the euro and the dollar is proving the safe haven for investors as it rises in all of the currencies. In particular, the euro will continue to fall against gold.

Silver– The silver price will follow gold as an investment not an industrial metal. [www.SilverForecaster.com]

Regards,

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