-- Posted Tuesday, 14 May 2013 | | Disqus
Gold Today – The gold price closed at $1,431.40 in New York yesterday. In Asia, gold recovered slightly to over $1,441 then in London it slipped to $1,434 until the Fix which was set at $1,436.50 up $6.75 on yesterday and in the euro at €1,103.472 up only €1 while the euro was much weaker at €1: $1.3018. Ahead of New York’s opening it stood at $1,429.00 and in the euro at €1,102.96.
Silver Today – Silver closed at $23.60, in New York yesterday the same as Friday last. Ahead of New York’s opening silver stood at $23.43 down 34 cents.
Gold (very short-term)
The gold price will continue to consolidate with a weaker bias, in New York today.
Silver (very short-term)
The silver price will continue to consolidate with a weaker bias, in New York today.
Price Drivers
Gold & Silver – The SPDR gold ETF has seen sales of only 0.37 of a tonnes yesterday. Hopefully this is marking the end of that selling, but we must wait through this week for that to be confirmed by no further sales. If it is so, then we expect demand to overwhelm supply, with COMEX understanding that and moving to the long side of the market, probably assisted again by physical buying by hedge funds and the leading Wall Street banks. But before that happens, we do expect more attempts to push gold & silver prices down further.
We certainly expect the current price volatility in gold and silver prices to continue this week.
However, another potentially negative factor for gold is the Reserve Bank of India (RBI) implementing its restriction on bullion imports. The RBI announced that its gold imports restriction, first proposed on 3 May, is effective immediately. According to the RBI, imports of gold by approved banks are strictly limited to a consignment basis to meet the genuine needs of exporters of gold jewelry. The initial reaction is negative, but we see this government being defeated on this as they were in the past on this subject. Gold Imports to India have been made illegal in the past, but gold still came in, in huge quantities. But there are other ramifications to gold in India now. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] The government has given the reason as combating the Trade deficit the country is experiencing now. But the Indian people care more about their financial security than their government and its corrupt bureaucracy. We cover this more in our newsletters this week.
Silver – If the cessation of sales from the SPDR gold ETF is happening now [to be confirmed] then the price of silver will, we feel follow the gold price, but retain its volatility this week. These are emotionally difficult markets for most, but we believe the ‘big’ picture favors gold and silver long-term and likely short to medium term now that the prices have fallen so far.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 3 days ago |
Franc | Sf1,368.62 | Sf1,368.73 |
US | $1,429.00 | $1,433.00 |
EU | 1,102.96 | €1,103.41 |
India | Rs.78,273.48 | Rs.78,428.09 |
-- Posted Tuesday, 14 May 2013 | Digg This Article
| Source: GoldSeek.com
