Silver Market Morning

Gold Today – Ahead of New York’s opening, gold was trading at $1,144.90 and in the euro at €923.31. The gold price closed at $1,143.50 up $1.50 on Thursday. It was then taken up overnight to $1,145 and was then Fixed at $1,145.00 up $0.50 and in the euro at €923.387 up €8.446, while the euro stood stronger at $1.2400. The volumes of net gold traded were three sellers selling 48,000 ounces and one buyer buying 40,000 ounces before the pro-rata process kicked in.

Silver Today – The silver price closed in New York at $15.45 up 17 cents. Ahead of New York’s opening it was trading at $15.30.

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 sellers of 2.969 tonnes of gold from the SPDR gold ETF but none from the Gold Trust on Thursday. The holdings of the SPDR gold ETF were at 732.831 tonnes and in the Gold Trust at 160.42 tonnes.

The gold price is not falling with the fall in the euro, at the moment. New York may change this, but it is significant that if the gold price continues to stop falling with the euro against the dollar, we may have seen two features kick in. Firstly, it may be that traders and speculators are no longer driving the gold price down and could close their positions and secondly, supply could be dropping while demand is starting to come in again. With only one day of this happening so far it is premature to say if this is a market change, but this may be a feature to watch for next week.

Around 50% of the world’s gold mining companies are now making losses. Close to 100% of platinum mining companies are. Silver miners may be faring better, but as the bulk of silver is produced as a by-product of base metal mining we do not think silver production itself will be hurt by lower prices. Scrap sales of gold are down as sellers are seeing prices too low, so market supply overall is falling.

The euro lurched another 1% lower to $1.2385 this morning. With Mario Draghi repeating his commitment to expand quantitative easing likely before the end of the year gold was expected to fall by another 1% overnight, but it hasn’t. Today, Friday, is always a most active day in the gold and silver markets. The Technical picture continues to be negative. [Get the bigger picture - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com ]

Silver– Silver remains heavily oversold. www.SilverForecaster.com

Kind Regards,

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