Silver Market Morning: April 13 2017 - Gold breaks up to new higher resistance just below $1,300!

Gold Today –New York closed at $1,281.50 yesterday after closing at $1,272.60 Tuesday. London opened at $1,286.30 today.

Overall the dollar was weaker against global currencies early today. Before London’s opening:

  - The $: € was weaker at $1.0646 after yesterday’s $1.0621: €1.

- The Dollar index was weaker at 100.24 after yesterday’s 100.61.

- The Yen was stronger at 108.99 after yesterday’s 109.70:$1.

- The Yuan was stronger at 6.8847 after yesterday’s 6.8943: $1.

- The Pound Sterling was stronger at $1.2559 after yesterday’s $1.2497: £1.

Yuan Gold Fix

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle East eastward metric measurements are used against 0.9999 quality gold. [Please note that the 0.5% difference in price can be accounted for by the higher quality of Shanghai’s gold on which their gold price is based over London’s ‘good delivery’ standard of 0.995.]

The Shanghai Gold Exchange was trading at 286.50 towards the close today. This translates into $1,289.34. New York was trading $7.84 below Shanghai. London opened at a $3.04 discount to Shanghai.

Shanghai has led the way in the last two days with both London and New York rising to catch up with Shanghai. The three markets are in synch now with arbitrageurs smoothing out the difference between the three.

We note that since the cost of speculation has been made more expensive in Shanghai, the number of attempts to shake prices by speculators such as High Frequency Traders has dropped almost completely away. We see that as an increasingly dominant physical market dominating more and more with the influence of COMEX falling away.

LBMA price setting: The LBMA gold price was set today at $1,286.10 from yesterday’s $1,272.30.

The gold price in the euro was set at €1,208.40 after yesterday’s €1,199.94.

Ahead of the opening of New York the gold price was trading at $1,287.05 and in the euro at €1,211.11. At the same time, the silver price was trading at $18.56.

Silver Today –Silver closed at $18.43 yesterday after $18.28 at New York’s close Tuesday.

Gold _{(very short-term)} The gold price should consolidate at these higher levels, in New York today.

Silver _{(very short-term)} The silver price should consolidate at these higher levels, in New York today.

Price Drivers

If the gold price can climb above $1,290 all vestiges of overhead resistance will have evaporated. Yes, the $1,300 level to $1,320 area may well cause a pause in the climb of the gold price for a short while, but essentially the mood for gold and silver will have changed to the upside, it seems.

There was no physical buying into the U.S. based gold ETFs yesterday. Despite this the gold price jumped through overhead resistance to current levels. What did help were the remarks by President Trump that the dollar is too strong. As you can see in the numbers above this has caused the dollar to slip. We expect the dollar to fall further still.

We are wondering if he really is in total control of U.S. markets and will carry out his election promises. So far he has been blocked. We do think the U.S. Treasury and the Fed will be happy about these remarks. We also note that ‘all has been forgiven’ Janet Yellen.

On top of that the potential global crisis of North Korea getting ready to test a nuclear bomb and now having the ability to reach the U.S. as well as Japan with missiles has elevated global tensions and fears of a potential conflict. This is certainly adding to gold’s climb now.

Gold ETFs – Yesterday saw no purchases or sales into or from the SPDR gold ETF and Gold Trust. Their holdings are now at 842.08 tonnes and at 201.67 tonnes respectively.

Since January 4^th 2016, 242.756 tonnes of gold have been added to the SPDR gold ETF and to the Gold Trust. Since January 6^th 2017 32.70 tonnes have been added to the SPDR gold ETF and the Gold Trust.

Regards,

Julian D.W. Phillips

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance To ensure you can benefit from the future higher gold prices we will see then, you need to hold it in a manner that makes sure it can’t be taken from you. Contact us at admin@stockbridgemgmt.com to buy physical gold in a way that we feel, removes the threat of it being confiscated. We’re the only storage company that offers that!

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