-- Posted Thursday, 2 May 2013 | | Disqus
Gold Today – Gold closed in New York at $1,458.70 in New York yesterday having fallen as low as $1431 before rebounding. In Asia, it fought back to recover to $1,458 as the Chinese holiday ended. In London it Fixed at $1,456 down $14.50 and in the euro at €1,106.215 down €6.6with the euro at €1: $1.3172 against the dollar. Ahead of New York’s opening it stood at $1,455.45 and in the euro at €1,104.50.
Silver Today – Silver closed at $23.63 down a dollar, in New York yesterday. Ahead of New York’s opening silver stood at $23.68.
Gold (very short-term)
The gold price will continue to consolidate with a stronger bias, in New York today.
Silver (very short-term)
The silver price will continue to consolidate with a stronger bias, in New York today.
Price Drivers
Gold & Silver – Once again New York attempted a ‘bear raid’, coming in before Asia opened and at the quiet time of the day, realizing that they had to try it while China was closed until their next morning. They drove it down to $1,431 and appeared to be succeeding, but before the close, the price found buyers, far better prepared this time round to grab low prices. Their actions caused the gold price to bounce $27 in quick time, ending the raid and reasserting Asian demand over New York.
The SPDR gold ETF again saw sales, this time of 3.4 tonnes making nearly 8 tonnes this week sold from the fund this week so far. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
Today the Chinese gold markets are open, but still need to gain momentum after their May Day holidays. With their return to the market the climate for further “bear raids” isn’t suitable as total Asian demand is poised to come in to take bargain prices. Asian demand is now price-sensitive because of the raids. Even though they buy to hold, the entry point is important for them, so they like to jump in as prices fall too low. This makes shorting the market dangerous for when ‘shorts’ want to close positions they find they have to chase prices themselves and can lose on these bets. Asian demand, while better prepared now, still does not have the very short reaction time that New York does, but this will come as they develop. We expect the success of such coordinated bank and fund ‘raids’ to diminish as Asian reaction times improve.
Silver – Silver was keen to fall with the gold price but is not so keen to improve as gold is. We are watching to see if this weaker performance will become the pattern for the future? We repeat that this does not reflect the fundamentals of the silver market.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,350.73 | Sf1,366.24 |
US | $1,455.45 | $1,471.90 |
EU | 1,104.50 | €1,126.12 |
India | Rs.78,397.81 | Rs.79,610.12 |
-- Posted Thursday, 2 May 2013 | Digg This Article
| Source: GoldSeek.com
