Silver Market Morning

Gold Today –New York closed at $1,732.00 the same now for three days. Asia and London are holing it at $1,730.75. The euro is still rising at rose in London’s morning to €1: $1.2914. The gold price was Fixed at $1,730.50 down $12 on yesterday morning and in the euro at €1,339.811 down €12 as the rise in the euro to $1,2919 held. Ahead of New York’s opening gold stood at $1,731.05 and in the euro at €1,340.44.

Silver Today – Silver held steady through New York closing there at $33.21. London lowered it to $33.07 down 55 cents. Ahead of New York’s opening it stood at $33.09.

Gold _{(very short-term)}

Gold will wait for the Fed announcement before moving strongly, today in New York.

Silver _{(very short-term)}

Silver will wait for the Fed announcement before moving strongly, today in New York.

Price Drivers

Gold & Silver – Gold and silver prices today are all about the Fed’s conclusion to their 2-day meeting. The Fed itself has made it clear that unless they see the recovery on a sustainable growth path, they will add further stimulation to the U.S. economy. Growth remains feeble, so everybody is expecting more QE of some kind.

Over the last five years the actions of the Fed have been insufficient to stimulate real growth. Will the Fed add a tiny step more and see it flounder or will it come out strongly to really boost growth? Any which way will continue to undermine the value of the dollar and so benefit precious metals.

This time round China is ready to stimulate their economy and the E.U.is trying to give the impression that it is supporting weaker economies of the E.U. [Hopefully they will be believed?]

It has to be said that unless convincing steps to stimulate the world’s economies small moves such as extending the period of low interest rates or just extending bond buying are no longer enough to convince the markets that growth is on the way.

The difference to the gold market this time is that traders and speculators may join central bank demand, Asian demand and manufacturing demand buying gold. Whatever happens, the reaction of the gold price will describe what the future holds for currencies, economies and confidence.

Silver – Silver will benefit alongside gold if the Fed stimulates the U.S. economy. Traders and speculators will likely go very long if they are convinced by the measures Mr. Bernanke puts forward to stimulate the U.S. economy.

Regards,

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