Silver Market Morning: July-25-2016 -- Gold and silver prices sitting on support!

Gold Today –Gold closed in New York at $1,323.10 on Friday after Thursday’s close at $1,333.10.

- The $: € was down at $1.0991 down from $1.1028.

- The dollar index fell to 97.27 from 97.01 Friday.

- The Yen was barely changed at 106.23 from Friday’s 106.21 against the dollar.

- The Yuan was stronger at 6.6786 from 6.6722 Friday.

- The Pound Sterling was weaker at $1.3149 down from Friday’s $1.3184.

Yuan Gold Fix

Shanghai prices were lower than at New York’s close, while London tried to pull prices lower at the opening and thereafter.

A strengthening dollar is at the heart of the weakness in gold and silver prices. We do not believe the dollar will get that much stronger and echo the opinion that the dollar is unlikely to rise higher than $1.07 against the euro. This helps to explain the limited Technical downside to gold prices.

Gold prices, in the three main global gold markets, continue to move very much in line with each other, reflecting the prices in the Futures and Options markets. With gold ETFs demand at low levels we expect this to continue, until gold ETF demand rises.

LBMA price setting: $1,315.00 after Friday 22^nd July’s $1,322.00.

The gold price in the euro was set at €1,196.22 down €2.76 from Friday’s €1,198.98.

Ahead of the opening in New York the gold price stood at $1,317.30 and in the euro at €1,199.02.

Silver Today –The silver price closed in New York at $19.64 on Friday down from $19.85 on Thursday. Ahead of New York’s opening the price was trading at $19.44.

Gold _{(very short-term)}

The gold price should consolidate in New York today.

Silver _{(very short-term)}

The silver price should consolidate in New York today.

Price Drivers

With both gold and silver prices now sitting on strong support we would expect their prices to move sideways, today, with the potential to move higher if we see a resuscitation of physical demand via the Exchange Traded Funds. [More in our newsletters – subscribe below].

Physical demand in the U.S. remains the principal driver of the gold price. If that demand slackens, prices subside slightly, much in line with the rise of the dollar. We don’t see the acquisition of gold via gold ETF investors ceasing, simply waiting for a piece of news that reminds them of the economic and monetary dangers that lie ahead.

With a recession in the U.K. imminent and the banking crisis rapidly moving to fruition, daily we see more and more reasons to retain gold holdings and buy more. We cannot see data that even remotely persuades us to sell gold or silver.

China continues to acquire as much gold as possible either by the acquisition of gold mining companies or by the direct purchases of gold in the bullion markets. They can see the dangers ahead for currencies and realize that their currency and its well-being may well rely heavily on the number of ounces of gold it has under its control when the paw-paw hits the fan.

Gold ETFs – In New York on Friday there were sales of 0.012 of a tonne of gold from the SPDR gold ETF, but no sales or purchases from the Gold Trust, leaving their holdings at 963.154 tonnes and 217.54 tonnes, respectively.

Since January 4^th this year, the holdings of these two gold ETFs have risen by 383.079 tonnes.

Silver –Silver prices could have a quiet time this week, until gold leads the way again.

Regards,

Julian D.W. Phillips

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance [Gold Storage geared to avoid its confiscation]

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