Silver Market Morning: April 26 2017 - Gold is slpping through support!

Gold Today –New York closed at $1,263.80 yesterday after closing at $1,276.10 Monday. London opened at $1,263.00 today.

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

  - The $: € was stronger at $1.0877 after yesterday’s $1.0895: €1.

- The Dollar index was stronger at 99.19 after yesterday’s 98.98.

- The Yen was weaker at 111.47 after yesterday’s 110.48:$1.

- The Yuan was weaker at 6.8907 after yesterday’s 6.8862: $1.

- The Pound Sterling was barely changed at $1.2815 after Friday’s $1.2814: £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 283.00 towards the close today. This translates into $1,272.42. New York closed at a $8.62 discount to Shanghai’s close yesterday. London opened at a discount of $9.42 to Shanghai.

While Shanghai’s gold prices are sipping slowly, New York and London have pulled prices back further.

LBMA price setting: The LBMA gold price was set today at $1,264.95 from yesterday’s $1,270.50.

The gold price in the euro was set at €1,162.96 after yesterday’s €1,167.95.

Ahead of the opening of New York the gold price was trading at $1,262.35 and in the euro at €1,160.57. At the same time, the silver price was trading at $17.50.

Silver Today –Silver closed at $17.63 yesterday after $17.92 at New York’s close Monday.

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

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

Price Drivers

The gold price appears to be breaking down through support at the moment, as the next round of the French election approaches. The markets are discounting a Macron victory and remaining in the E.U. But it appears that the main cause of prices falling is the lack of demand in London [For our forecasts, subscribe through www.GoldForecaster.com ]

President Trump is due to announce the changes in Tax rates he proposes, today. But these will not be implemented for some months still. Meanwhile his policy progress is being interfered with once again as the government’s funding appears to be back on the table as a negotiating tool, this weekend. Will we see a government shutdown?

While we cannot get our minds round the thought that North Korea will test another missile in the face of potential U.S. hostilities, we see U.S. warships positioning themselves for such a confrontation.

Consequently the markets are calm with high expectations still. This is gold negative at the moment, but can change quickly.

Gold ETFs – Yesterday saw sales of 5.921 tonnes into the SPDR gold ETF but no change in the Gold Trust. Their holdings are now at 854.25 tonnes and at 204.36 tonnes respectively.

Since January 4^th 2016, 257.256 tonnes of gold have been added to the SPDR gold ETF and to the Gold Trust. Since January 6^th 2017 47.20 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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