Silver Market Morning

Gold Today – The gold price closed at $1,276.2 down $4.20 tonnes on Monday’s level in New York. In Asia and London, gold prices jumped to $1,289 as the dollar held new levels but the euro continued to slip slightly to $1.3193. The gold price was Fixed at $1,286.50 up $9.25 and in the euro at €974.769 up €10.588, while the euro was weaker at $1.3198. Ahead of New York’s opening, gold was trading at $1,287.40 and in the euro at €974.86.

Silver Today – The silver price closed in New York at $19.37 down 11 cents. Ahead of New York’s opening it was trading at $19.55.

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 2.992 tonnes from the SPDR gold ETF and of 0.45 tonnes from the Gold Trust on Friday. The holdings of the gold ETFs stand at 797.093 tonnes in the SPDR gold ETF and at 165.96 tonnes, in the Gold Trust. And yet Asian demand took the gold price up strongly in all currencies. This is confirmed by rise in the premium that buyers in India pay for gold rising from nought to between US$10 an ounce and US$13 an ounce over London prices. Indian demand is proving stronger than Chinese demand today.

We are watching the gold price in the euro in particular, where it is rising as the euro falls, despite arbitrageurs trying to push it down with the euro. Asian demand certainly likes prices in this area.

The Technical picture continues to look poor, but it has become apparent that the influence the Technical picture has, is far stronger in the developed world than in Asia where the focus is on dollar price levels and the availability of income with which to buy gold. So our question of yesterday, “Are the prices we are seeing now at bargain basement levels?” is seeing an answer. But a lot more work needs to be done before we resume the uptrend. [Subscribe www.GoldForecaster.com – ensure your gold will not be confiscated and you not penalized -see www.Stockbridgemgmt.com ].

Overnight the geopolitical situation decayed further as Russian tanks were destroyed in the Ukraine. The perception inside Russia of the Ukrainian crisis is far different from that we see in the west. It really does appear that a Russian invasion of the Ukraine is imminent now. But, again, who is going out to buy gold on the back of that news?

In the Eurozone it is now clear that France is in a major economic crisis and yet bound to follow the lead of the E.U. While the cabinet has been dissolved by President Hollande the Socialist regulatory climate alongside ongoing austerity, is crippling attempts to make the economy grow. We feel, it must get much worse before it gets better there. Prospects for the E.U. do not look good and we fully expect deflation to kick in and the euro continue to decline. We do expect Europeans to protect themselves from this by buying gold.

Silver– The silver price is uncertain following gold up and will stay riveted to it. www.SilverForecaster.com]

Regards,

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