-- Posted Friday, 17 May 2013 | | Disqus
Gold Today – The gold price continuedto fall in New York to close at $1,386.70. In Asia the gold price pulled backfurther to $1,376 ahead of London’s opening today. In London it Fixed at $1,376.75 down $0.25 onyesterday and in the euro at €1,069.15 down €0.75, while the euro was muchweaker at €1: $1.2877. Ahead of New York’s opening it stood at $1,376.00 and inthe euro at €1,068.99.
Silver Today – Silver closed at $22.69,in New York yesterday up 16 cents. Ahead of New York’s opening silver stood at$22.49.
Gold(very short-term)
The gold price willconsolidate above $1,370, in New York today.
Silver(very short-term)
The silver price willcontinue to consolidate, in New York today.
PriceDrivers
Gold & Silver – The SPDR gold ETF saw sales yesterday of another6.65 tonnes, making sales of 15.50 on the week. Until this stops the gold priceremains under pressure. However, yesterday the sale of this gold only took thegold price down $10 overnight.
Reports come in thatAsian demand is still strong with premiums over $6 in Hong Kong and dealersrunning out of gold in India.
With the governmentbanning imports of gold except to those who will export it as jewelry, weexpect these shortages to grow quickly. Smuggling started up again when theimport and excise duties were lifted in India earlier this year, but should begaining momentum now. We have yet to see the impact on Indian markets there.Add to this that scrap sales are evaporating and we will see the balance ofsupply and demand go back to a deficit from the surplus we see emanating fromthe U.S. gold ETFs now.
Again we stress thatthese market conditions are temporary. For example George Soros only has 16tonnes remaining in his holding of SPDR shares as of the end of March. At therate of sales we are seeing from the SPDR gold ETF that’s around one week’ssupply. Other institutions are likewise running out of stock to sell.
Once this is gone, thegold market will feel the full weight of demand out of Asia. We also remind youthat Asian buyers don’t buy or sell because the U.S. economy is avoidingdeflation. Only U.S. and perhaps some other developed world institutions do. Soonce this source of supply dries up, the control of the market moves to theeast.
We see this making for avolatile and remarkable gold market in 2013, with many more institutional goldprice forecasts ‘readjusted’ several times. [Subscribe to ournewsletters at www.GoldForecaster.com andwww.SilverForecaster.com]
Silver – Silveris following gold on the way down, despite there being no sales from the silverExchange Traded Fund.
Regards,
Julian D.W. Phillips for the Gold & SilverForecasters
| Global Gold Price (1 ounce) |
| | Today | 1 day ago |
| Franc | Sf1,331.41 | Sf1,331.47 |
| US | $1,376.55 | $1,392.55 |
| EU | 1,068.99 | €1,095.67 |
| India | Rs.75,522.45 | Rs.77,430.58 |
-- Posted Friday, 17 May 2013 | Digg This Article
| Source: GoldSeek.com
