Gold Today –New York gold closed at $1,599.60 down $8.70. London took gold down to $1,594 ahead of the Fix after which it Fixed at $1,594.74 as the euro stood at €1: $1.2328. In the euro it was Fixed at €1,293.600 down €12 on yesterday morning. Ahead of New York’s opening gold looked slightly stronger at $1,595.60 in the middle and in the euro at €1,299.40.
Silver Today – Silver in New York closed at $27.79 before slipping back to $27.65. Ahead of New York’s opening it stood at .
Gold (very short-term)
Gold should have a stronger bias, today in New York.
Silver (very short-term)
Silver should have a stronger bias, today in New York.
Price Drivers
Gold & Silver –
The news of the day is that ‘officially’ the Eurozone is in recession. The euro is relatively stable at €1: $1.2329 while gold and silver continue in their narrow trading pattern still.
The “gold season” starts any day, from now on. It sometimes does not get cracking until the end of August early September. From now on the developed world starts to return from their summer holidays, ready to start up the process that leads to the year end festivities. The first task is for jewelers to buy gold for manufacturing and to sell to wholesalers ready to present to customers ahead of festivities.
In India after a worrying start to the monsoon, rainfall came to take its levels of rain back to ‘normal’ levels. The harvesting is underway after which gold buying with the profits begins.
In China, there is no particular season because the Chinese investor buys gold as he has the cash available to do so.
This time of the year is very significant for the gold world and by extension the silver world. It is the time of the year when we see demand grow on most fronts and is the time of the year when gold and silver are likely to reach their highest level in the year. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
What is more pertinent to the gold and silver price is that the demand that springs up from now on is not driven by U.S. politics, Eurozone crises or newsworthy currency items. It is driven by sheer physical demand for gold and gold jewelry the world over. It is the time of year when it is better to be long of gold and silver than to be short of them.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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