Silver Market Morning

Gold Today – The gold price closed at $1,237.80 up $4.40 on Wednesday. Asia took it higher to $1,239.75 ahead of London’s opening. The euro is over 1.5 cents stronger at $1.2802. The Fix was set $1,241.00 up $17.50 and in the euro at €969.380 up €1.805, while the euro stood stronger at $1.2802. The volumes of gold traded were one seller selling 32,000 ounces and two buyers buying 18,000 ounces before the pro rata arrangement kicked in. Ahead of New York’s opening, gold was trading at $1,242.80 and in the euro at €976.81.

Silver Today – The silver price closed in New York at $17.43, 3 cents higher, marking time until it sees a bigger break-out in gold. Ahead of New York’s opening it was trading at $17.43.

Gold _{(very short-term)} Gold’s performance in New York and London today is important for the longer term.

Silver _{(very short-term)} Silver will mark time or show the ‘shunt’ effect’, in New York today.

Price Drivers

There were sales of 2.093 tonnes of gold from the SPDR gold ETF, but none from the Gold Trust, on Wednesday. The holdings of the gold ETFs stand at 759.141 tonnes in the SPDR gold ETF and at 161.40 tonnes in the Gold Trust. These sales were snapped up by the market in an instant.

With persistent solid demand out of Asia continuing to drain the market without chasing prices, it was only a matter of time before the shorts in the market place took flight. When the gold price broke through overhead resistance the gold price leapt to $1,250 before retreating to $1,236. But its behavior since yesterday is sending a message that it is preparing to pounce on that overhead resistance too. The rest of the week may see that happen. Alongside all other financial markets across the globe, gold is at an important juncture for the longer term.

It would appear that intervention from central banks came into halt the rise of the dollar. But the interpretation of this was negative regarding global growth. It seems that we are watching tidal changes in many markets, pointing to a global slowdown after years of monetary stimulation. What pragmatic means are left for governments and central banks to create growth? If the stimulation we have watched since 2008 has not created a sustainable recovery across the globe, what lies ahead? Whatever it is it will be profound and world changing. We cannot describe what we expect in this small report, but do so in our newsletters. [Get the bigger picture - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com ]

India imported an estimated 95 tonnes of gold in September compared with 15-20 tonnes for the same month last year. This is an important number because it was August last year that the 80-20 gold import restrictions were imposed. So both numbers reflected the restrictions showing us the intensity of demand happening now and last month, there.

Silver– Silver prices are still waiting for gold to lead the way. www.SilverForecaster.com

Kind Regards,

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