Silver Market Morning

Gold Today –New York closed at $1,192.90 up $4.10 yesterday. Asia held it there and so did London. The LBMA Gold price was set at $1,191.25 up $3.85 over yesterday. The euro equivalent stood at €1,062 .11 down €8.12 while the dollar was weaker at $1.1211 down from $1.1011 against the euro. Ahead of New York’s opening, gold was trading slightly lower in London at $1,190.60 and in the euro at €1,059.63.

Silver Today – The silver price closed at $16.54 up 12 cents on yesterday’s level. Ahead of New York’s opening it was trading at $16.45.

Gold _{(very short-term)} The gold price should consolidate with a positive bias, in New York today.

Silver _{(very short-term)} The silver price should consolidate with a positive bias, in New York today.

Price Drivers

Yesterday saw the gold and silver markets in the developed world reflect the demand and supply levels more accurately than on Monday while London was closed and trading was very thin. The dollar stumbled yesterday with the dollar index moving down to 94.81 today against 95.80 yesterday, and the dollar slipped to $1.1233 from yesterday’s $1.1084. There were no purchases or sales of gold into the SPDR gold E.T.F. and none from or into the Gold Trust yesterday. The holdings of the SPDR gold ETF are still at 741.750 tonnes and at 165.58 tonnes in the Gold Trust. The dollar still has lots of work now, before it rises again. The dollar’s drop yesterday came about after the huge Trade deficit numbers were released in the U.S. Please note that in the past the Trade deficit [a perpetual one] did not influence the dollar’s exchange rate. Whether the Treasury ‘assisted’ the dollar’s fall or not remains to be seen, but if it fell on the Trade deficit it would mark for the first time for several decades that this has happened. They only way we can confirm this, is if the dollar’s weakness persists over a few months, not just a few days. We note too, that the dollar is not moving in the opposite direction to gold and with the euro. We are looking to see if this structural market shape is changing too? Gold’s independence to currencies would be positive for the gold and silver price’s future. Subscribe www.goldForecaster.com

The story on Greece is moving to a critical stage and on the stage it is as Greece is showing an unwillingness to bend and accept the ‘red lines’ the E.U. has given it. In turn the E.C.B. has to decide if it is going to let Greece have more funds to meet its obligations today! Certainly the posture of the Greek Ministers is that the E.U. will give in at the last moment. And that last moment may be very close now. Once we have clear direction we will see it affect the exchange rate of the euro to the dollar and for gold to react separately.

As we have said before, the Eurozone needs Greece to keep the euro weak. Without it the euro will rise strongly. The benefits to the Eurozone, from Greece’s mismanaged finances, has vastly increased Germany and other strong members global trade volumes, way beyond Greece’s indebtedness to the E.U.

Silver– Silver’s price will continue to move with the gold price, but with a stronger bias.

Subscribe www.SilverForecaster.com

Regards,

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