Silver Market Morning: Nov-22-2016 -- Gold and Silver finding a bottom!

Gold Today –New York closed at $1,208.30 yesterday after the previous close of $1,218.28 London opened at $1,217.82.

Overall the dollar was weaker against global currencies.

- The $: € was weaker at $1.0644: €1 from $1.0626: €1 yesterday.

- The Dollar index was a weaker at 100.74 from 101.11 yesterday.

- The Yen was stronger at 110.58: $1 from yesterday’s 110.84 against the dollar.

- The Yuan was stronger at 6.8910: $1 from 6.8967: $1 yesterday.

- The Pound Sterling was stronger at $1.2491: £1 from yesterday’s $1.2331: £1.

Yuan Gold Fix

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle Eat 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.]

As you can see gold prices in Shanghai are $21 higher than New York’s close and $12 higher than London’s opening [allowing for the difference in the quality of gold priced in the different markets],

The dollar is lower again, bouncing off the 101 dollar index area there. The dollar is the driver of U.S. prices allowing gold prices in other currencies to rise. While heavy selling continues from the gold ETFs in the U.S. New York will pull prices down. With London being the hub of the developed world’s physical gold market it will pull prices higher as the Chinese banks, via a typically structured ‘swap’ transaction, will arbitrage gold between Shanghai and London, where profitable.

LBMA price setting: The LBMA gold price setting was at $1,217.55 against yesterday’s $1,214.95. The gold price in the euro was set higher at €1,145.07 against yesterday’s €1,143.59.

Ahead of the opening of New York the gold price was trading at $1,217.75 and in the euro at €1,145.26. At the same time, the silver price was trading at $16.77.

Silver Today –Silver fell to $16.59 at New York’s close yesterday from $16.58, Friday.

Gold _{(very short-term)} The gold price will consolidate, in New York today.

Silver _{(very short-term)} The silver price will consolidate, in New York today.

Price Drivers

Heavy institutional selling continues from the U.S. gold ETFs and while it does, we do not expect to see a strong bounce.

Once this halts or falls back to smaller amounts then Shanghai’s influence will be felt in London and New York. The Chinese Banks are ideally placed to pick up the gold [in London where HSBC would sell it] sold and ship it to the U.S. HSBC itself, too, would take the opportunity to ship gold to Shanghai and take the differential in price, as the Custodian of the SPDR gold ETF [GLD].

With President-elect Trump telling the world that he is walking away from TTIP trade deal we expect him to re-look and alter the NAFTA Trade deal too. In itself, we see this policy as a reversal on the Free Trade and globalization path.

Will politicians slow his path? We doubt it as Trump’s history is as a man of action, so what he says he will do. This is gold and silver positive![We will discuss this in depth in future issues of the Gold Forecaster for subscribers!] - Subscribe - GoldForecaster.com - 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!

Gold ETFs – There were sales of 6.523 tonnes of gold from the SPDR gold ETF and sales of 1.34 of tonnes from the Gold Trust yesterday, leaving their respective holdings at 908.765 tonnes and 206.38 tonnes.

Since January 4^th this year, 314.136 tonnes of gold has been added to the SPDR gold ETF and to the Gold Trust.

The selling in the U.S. based gold ETFs continued yesterday pulling back the gold price to support at $1,210. With the Chinese pulling the gold price up to the high $1,220 area we expect New York prices to remain lower to take advantage of sellers, but at the same time we expect China to arbitrage gold positions between Shanghai and London.

Silver –Silver is attempting to hold around the $16.60 level as it waits for gold to find a bottom then bounce. This may happen soon as the dollar is looking ‘toppy’.

Regards,

Julian D.W. Phillips

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

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