Silver Market Morning

Gold Today – The gold price closed at $1,222.90 up$7.60 on Tuesday in New York. In Asia and London, gold prices rose to $1,227. The gold price was Fixed at $1,224.00 down $1 and in the euro at €952.826 up 1.813, while the euro was weaker at $1.2846. Ahead of New York’s opening, gold was trading at $1,225.10 and in the euro at €953.31.

Silver Today – The silver price closed in New York at $17.80 down 1 cent. Ahead of New York’s opening it was trading at $17.74.

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

Silver _{(very short-term)} Silver should consolidate, in New York today.

Price Drivers

There sales of 1.196 tonnes from the SPDR gold ETF but none from the Gold Trust, on Tuesday. The holdings of the gold ETFs stand at 773.449 tonnes in the SPDR gold ETF and at 164.72 tonnes in the Gold Trust. Once more, we are now of the opinion that this is Technical selling possibly triggered by ‘stop loss’ selling. [Get the bigger picture - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com ] While the gold price has bounced slightly volumes are still thin in the London market. The bounce is from a level close to $1,200, but we caution that Asian investors don’t chase prices, they simply buy bargains. So while the price may hold, in line with Indian and Chinese premiums, we don’t expect prices to roar higher until there is a specific piece of news that hits the gold market.

Since the west put pressure on Russia via sanctions and the limitations on the use of developed world’s financial markets, Russia and China have accelerated the use of the Yuan in their trading. The huge gas/oil deal being started between the two, looks more and more likely to be priced and paid for in the Yuan. China is already paying in advance in Yuan.

Iran is selling oil to China and being paid in the Yuan. More to the point some countries are now collecting the Yuan in their reserves as the currency becomes more and more international. While there is still a long way to go, the process is well under way. It is unlikely to be reversed. This is not good news for the dollar and is good news for gold.

Silver– With 1,000 tonnes of silver being added to the holdings of the Silver Trust since the beginning of August and demand for silver still on the rise globally, we see the silver price ignoring the fundamentals of that market and following gold wherever it will go. Consequently, it is more relevant to follow the factors affecting the gold price than those of silver. Certainly this has proved to be the case for the last two years in which silver has become increasingly an investment metal and, we feel, will continue to do so. It still looks thoroughly oversold to us. - www.SilverForecaster.com] Certainly if silver continues to fall it will be because gold is falling. The separation of the two prices is unlikely, we feel.

Kind Regards,

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