Silver Market Morning: Oct-31-2016 -- Gold price breaking up through resistance!

Gold Today –New York closed at $1,274.90 Friday after the previous close of $1,273.60 London opened at $1,277.00.

- The $: € was weaker at $1.0955: €1 from $1.0920: €1 Friday.

- The Dollar index was weaker at 98.55 from 98.82 Friday.

- The Yen was stronger at 105.00: $1 from Friday’s 105.32 against the dollar.

- The Yuan was stronger at 6.7751: $1 from 6.7802: $1 Friday.

- The Pound Sterling was stronger at $1.2158: £1 from Friday’s $1.2126 £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.]

Once again, take a look at the last three days of Shanghai gold Fixings. Allow for the different qualities of gold being priced and you see Shanghai prices higher than New York and London. On Monday London opened in line with Shanghai then prices began to pull back through the morning. Allowing for Shanghai pricing of higher quality gold the prices were lower in London by $4 during the morning up to the LBMA price setting.

LBMA price setting: The LBMA gold price setting was at $1,274.20 against Friday’s $1,265.90. The gold price in the euro was set lower at €1,163.12 against Friday’s €1,159.67.

Ahead of the opening of New York the gold price was trading at $1,274.45 and in the euro at €1,164.09. At the same time, the silver price was trading at $17.83.

Silver Today –The silver price rose to $17.77 at New York’s close Friday from $17.63, Thursday.

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

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

Price Drivers

Over the weekend, in the absence of SPDR sales, the gold price looked buoyant in Shanghai but pulled back slightly in London.

We expect New York to see buyers who sense the gold price will go higher towards $1,300 soon. There is little news to push gold prices higher or lower, until the paw-paw [Papaya] hit the fan over Mrs. Clinton’s e-mails. This raises the doubts about who the future President of the U.S. will be once more. Perhaps a stronger driving force was Asian demand from last week.

The Indian festival of Diwali began on the 30^th October and runs through to the 3^rd November. The gold markets in India are closed until then. Thereafter the ‘marriage season’ begins. So after this break we expect Indian gold demand to rise once more.

There is an Indian government commission deciding just how much General Sales Tax to impose on gold in 2017. Currently, it has Duties of 10% and a 1% sales tax payable on ‘officially’ imported gold. Some expect Duties to be lowered to 4-6% to deter smugglers, but this, in our opinion is unlikely. GST and duties paid are reportable. GST requires far more in-depth reporting. This alone, we feel will be a further incentive to smugglers in the knowledge that reporting to government is anathema to the gold[or any] trade. The set of books that record official imports and GST to be paid [from 2017] and the set of books that record the smuggled gold are very different and ‘never the twain shall meet’. Subscribe - GoldForecaster.com

To ensure you can benefit from the higher gold prices we see then, you need to hold it in a manner that makes sure it can’t be taken from us. 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 no sales or purchases or sales from or into the SPDR gold ETF and the Gold Trust on Friday, leaving their respective holdings at 942.589 tonnes and 230.55 tonnes.

Since January 4^th this year, the holdings of these two gold ETFs have risen by 372.16 tonnes.

Silver – Silver continues to deny its own fundamentals and Technical picture as it moves as a monetary metal following gold. This pattern will continue to persist for silver prices.

Regards,

Julian D.W. Phillips

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

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