Gold Today –New York closed up $22 at $1,778.50 little changed from yesterday. This morning Asia and London took it higher to $1,788.00 as the euro moved up to $1.2947. It was then Fixed at $1,786.50 up $8.75 and in the euro at €1,380.923 up €6, while the euro stood at $1.2937. Ahead of New York’s opening gold stood at $1,788.00 and in the euro at €1,380.38.
Silver Today – Silver closed at $34.57 in New York yesterday, barely changed. London lifted it strongly to $35.03. Ahead of New York’s opening it stood at $34.91.
Gold (very short-term)
Gold should be stronger, today in New York.
Silver (very short-term)
Silver should be stronger, today in New York.
Price Drivers
Gold & Silver – The strong move we expected came after New York’s close yesterday. As the Chinese markets returned from holiday we saw the delicate balance of demand and supply, which narrowed the trading range of gold and silver prices so much, that it tipped the way of demand from Asia and up. Again, please note that India is not moving prices and won’t until imports of gold resume, despite the gold price in the Rupee falling.
The rise in the gold price is a reminder that it is demand and supply in the international market place that dictates prices. By that we mean physical demand, not demand for derivatives. Even the falling oil price [$88], which many presume to correlate to the gold price, bowed to the real physical demand that ignores it. In doing so it showed its correlation, at best, is indirect.
We issued and article on central bank demand and its effect on the gold price this week. The current price rise illustrates what we were saying about the changed shape of demand. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]. We emphasize that current news items do not influence precious metal prices unless the correlation between them is very definable.
Silver – Silver showed its greater strength than gold this morning and looks good!
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
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