Silver Market Morning

Gold Today – The gold price closed at $1,241.50 down $6.80 on Wednesday. London took it down to $1,243. The euro is weaker this morning at $1.2640 down half a cent on yesterday. The Fix was set $1,240.50 down $6.25 and in the euro at €979.935 down €2.145, while the euro stood stronger at $1.2659. The volumes of gold traded were two sellers selling 16,000 ounces and no buyers. Ahead of New York’s opening, gold was trading at $1,238.80 and in the euro at €978.21.

Silver Today – The silver price closed in New York at $17.15 down 36 cents, tending to weaken faster than gold. Ahead of New York’s opening it was trading at $17.15 still.

Gold _{(very short-term)} Gold is likely to consolidate, with a weaker bias, in New York, today.

Silver _{(very short-term)} Silver is likely to consolidate with a weaker bias, in New York, today.

Price Drivers

In New York there were sellers of 11.063 tonnes of gold, a large amount again! No such sales happened from the Gold Trust. The holdings of the gold ETFs stand at 749.872 tonnes in the SPDR gold ETF and at 161.40 tonnes in the Gold Trust. This is the second large amount sold out of the SPDR fund this week. We are watching to see if this is a large holder cutting his positions or just amassed Technical selling, as the gold price slipped below the 50-day average. Whatever it was, it did not affect the gold price more than the falling euro. If we see the euro rise again, we are looking to see if it will lift gold above that average. All are watching to see if gold has been blocked or just delayed in its rise.

The lack of buyers at the gold Fix this morning was the first time we have seen this. While the fundamentals remain positive, the gold price looks vulnerable today. [Get the bigger picture - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com ]

Listen out for fireworks in your area this evening! Diwali is today and the peak time for buying gold as Hindus celebrate what they believe is a god of wealth. It is possible that we will see demand fall thereafter, but more likely we will see stockists come to the market to replenish stock for the marriage season.

Silver– Silver prices are looking to weaken after marking time, hoping for gold to lead the way. While silver investors into the Silver Trust, the largest silver Exchange Traded Fund have sold less than 200 tonnes in the last two weeks, it was after purchases of 1500 tonnes since the beginning of August. It is very clear that the fundamentals of either silver investment or industrial demand and supply are not reflected in the silver price. The silver price has followed the gold price for the last few years and shows no signs of reflecting its own background. Consequently, the savvy silver investor should be following the gold market very closely to understand the silver price. www.SilverForecaster.com

Kind Regards,

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