Silver Market Morning: June 7th, 2013

Gold Today –New York closed at $1,412.00 up nearly $10, yesterday, after which Asia held it there as did London. It then Fixed lower at $1,410.00 up $10.5 and in the euro at €1,065.116 down nearly €1 while the euro was stronger at €1: $1.3238. Ahead of New York’s opening gold stood at $1,411.05 and in the euro at €1,064.26.

Silver Today – Silver closed at $22.68 in New York yesterday. Ahead of New York’s opening silver stood higher at $22.62.

Gold _{(very short-term)}

We expect a strong move in the gold price soon, in New York.

Silver _{(very short-term)}

We expect a strong move in the silver price soon, in New York.

Price Drivers

Gold & Silver – The demand for physical gold remains slightly less exuberant, but solid and persistent still, until we see much higher gold prices than at present.

- Prices of Shanghai gold futures held some $20 about international benchmarks yesterday. [China's markets will be closed for the first three days of next week for the Dragon Boat Festival]

- In the United States demand for American Eagle gold coins remains "unprecedented" according to U.S. Mint.

- It is expected that smuggling of gold into India could supply up to 20% of demand. Over time we believe that year-on-year imports of gold into India will remain high, while Rupee prices of gold remain well below their peaks. This is irrespective of higher duties.

- Central bank demand remains solid from emerging nations.

The Labor numbers out of the U.S. have focused markets today. The lackluster recovery needs to confirm it is going to improve and these numbers will tell us if it is? A look across at the tumbling of the Nikkei index in Japan shows us in accelerated form how much confidence in QE succeeding is important. It has gone on for years in the U.S., but in Japan has just started. Of itself, it can’t succeed, but with the people’s confidence and the backing of government programs for growth, it can. Sad to say government programs for growth in the developed world are sadly lacking. Because of the long-term detrimental effect of the overall impact on currency values, this scene is positive for gold long-term.

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We again saw sales from the SPDR gold ETF of 4.677 tonnes. Although a large amount it did not affect the gold price after its initial impact. The price rose to close higher, despite this.

Silver – The silver price again, barely moved yesterday holding its ground waiting a new move from gold. We may see that today or next week!

Regards,

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