Silver Market Morning

Gold Today – The gold price closed at $1,172.4 down $26.30 on Friday. On Monday, Asia and London took down to $1,168 before it recovered to $1,170. The euro is weaker this morning at $1.2493. The Fix was set $1,170.75 down $2.50 and in the euro at €936.90 up 3.447 up €3.453, while the euro stood weaker at $1.2496. The volumes of net gold traded were two sellers selling 44,000 ounces and two buyers buying 62,000 ounces before the pro-rata process kicked in. Ahead of New York’s opening, gold was trading at $1,171.40 and in the euro at €937.42.

Silver Today – The silver price closed in New York at $16.16 down 33 cents. Ahead of New York’s opening it was trading at $16.10.

Gold _{(very short-term)} Gold will continue to look for a bottom, in New York, today.

Silver _{(very short-term)} Silver is likely wait for gold to find a bottom, in New York, today.

Price Drivers

In New York there were no sellers or buyers of gold from or to the SPDR gold ETF or the Gold Trust on Friday. The holdings of the SPDR gold ETF were at 741.201 tonnes and in the Gold Trust at 161.33 tonnes.

Investors now ask if the strong dollar is really a strong dollar or weaker other currencies. The moves into the dollar are certainly retreats from other currencies as Japan makes a gear-shift in its stimulation program, undermining the Yen in the process taking it to 112.6 to the dollar, while the growing divisions in the E.U. portend falling confidence in the euro as it too accelerates its stimuli through Q.E. In the E.U. and in Japan the battle is against deflation. In the U.S. people are assuming that battle is won. Can the U.S. walk the economic road alone?

Yes, the U.S. economy is growing stronger while its oil imports are lowering the Trade deficit and adding to the stronger dollar. Beware of assuming that this is a ‘natural’ progression’. The U.S. has made it clear that it does not want a stronger dollar which will cheapen imports, so we watch to see if they will act opaquely to weaken the dollar. Certainly the level of currency volatility has grown substantially since the end of Q.E. there.

This morning saw Asian investors pick gold up but not heavily, as today’s gold price describes. Certainly, the aftermath of Diwali has left Indian gold markets quiet with prices at lows not seen for three and more years, awaiting the onset of the marriage season later this month.

We do expect a stronger response from Chinese demand to the current gold prices but at the moment traders and speculators are taking gold prices down as lower demand, at this moment, allows them to do. [Get the bigger picture - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com ]

Silver– Silver prices started the week holding above $16.00 but only just. www.SilverForecaster.com

Kind Regards,

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