Silver Market Morning

Gold Today – The gold price closed at $1,304.10 down $8.90 on Friday in New York. In Asia, gold prices pulled back to $1,300 ahead of the opening in London. The gold price was Fixed at $1,302.75 down $10.75 and in the euro at €972.928 down €7.15, while the euro was weaker at $1.3390. Ahead of New York’s opening, gold was trading at $1,301.70 and in the euro at €971.78.

Silver Today – The silver price closed in New York at $19.62 down 30 cents. Ahead of New York’s opening it was trading at $19.60.

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 no sales or purchases into or from the SPDR gold ETF or the Gold Trust on Friday. 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.

On Friday, as we warned that in a thin and balanced market, traders have the opportunity to push prices around any way they want. This happened with gold being pushed back to support at $1,300 area, but silver was a better target. It was pushed back 30 cents or 1.5% in the day. Both precious metals are waiting for clear direction, still. We expect sideways movement within support and overhead resistance for the entire week with similar action as seen last week as consolidation continues until there is a breakout one way or the other caused by physical sales or purchases.

In the E.U. France is not only seeing its economy lose momentum, but the government deficit rise against GDP. At a certain point this breaches E.U. rules and a government must take action to rectify this state of affairs. With a recession looming in France [Italy is in a triple-dip recession, France at zero growth and Germany contracting by 0.2% in the second quarter] the Finance Minister of France stated that, “This country will no longer try to meet its deficit targets and would not inflict further damage on its economy by tightening into the downturn. He added, “I refuse to raise taxes to close any budget gaps. Growth is too weak in Europe and inflation is too low. We must therefore stop reinforcing the causes of this depression,” he said. So what will happen? We ask, “Are governments capable of creating growth there?” If not then the situation will only worsen across the E.U. Most ominously he said, “We must face the figures in front of us with realism. The truth is that, contrary to the forecasts of the International Monetary Fund and the [European] Commission, growth has broken down, both in France and in Europe.” Sad to say, a retreat into gold and silver, as fear and uncertainty rise, is more than likely. [Subscribe www.GoldForecaster.com – ensure your gold will not be confiscated and you not penalized -see www.Stockbridgemgmt.com ].

Silver– The fall in silver may have been overdone? [www.SilverForecaster.com] Let’s see!

Regards,

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