-- Posted Tuesday, 21 May 2013 | | Disqus
Gold Today – The gold price did anabrupt turnaround in New York to close at $1,395 up $41. In Asia and earlyLondon the gold price was pulled back to Fix in London’s morning at $1,378.75up $25 and in the euro at €1,070.209 up €18, while the euro was slightlychanged at €1: $1.2883. Ahead of New York’sopening it stood at $1,380.40 and in the euro at €1,074.32.
Silver Today – Silver closed at$22.17, in New York yesterday. Ahead of New York’s opening silver stood at $22.43.
Gold(very short-term)
The gold price is turningand should consolidate below $1,400, in New York today.
Silver(very short-term)
The silver price willfollow gold, with a stronger bias, in New York today.
PriceDrivers
Gold & Silver – The SPDR gold ETF saw sales on Monday of another8.83 tonnes. Despite this, we saw a heavy short covering in the U.S. inphysical gold taking the gold price up $41 overnight. Again we say, “Untilthese sales halt the gold price will continue looking for support lower down.”But the dramatic developments in the gold market we mentioned yesterday arekicking in and forcing a turn in the gold and silver prices. [Subscribeto our newsletters at www.GoldForecaster.com andwww.SilverForecaster.com] As we said early last week, this fortnight isa watershed time for gold and silver prices. We are seeing this now.
Inview of the events happening now in the gold and silver markets, we feel itwise that we warn readers that it is dangerous to accept ‘big’ reasons for ‘small’events in these markets. The fall in the gold and silver prices was because ofprofessional traders with sufficient weight of both selling and buying to hitprices, as we have seen in the last two months. They are equally capable ofdriving prices up the same way. There reason is uncomplicated andstraightforward. It’s for profit! Thedeveloped world sophisticated markets provide the capability and capacity toundertake such operations. They realize that with the SPDR sales eventuallycoming to an end, the see-saw of demand supply will tip in favor of demand andhigher prices. It is just a matter of timing. The fundamental forces drivinggold and silver prices now have not changed nor will they, for someconsiderable time. So it would be dangerous to take some macro-economic factoras the reason for the fall and would be misleading, as events in the next fewweeks will confirm.
Silver – Oneor two major player in the silver market, tried to emulate the ‘bear raiders’in the gold market, but appears to have burnt his fingers. Silver fell, as aresult, to $20.30, on Friday. Heavy, concentratedselling overnight in thin, illiquid Asian trading is always the best time andway for such raiders to strike. The fall was 10% and fell from $22.36/oz to$20.30/oz in just four minutes. Silver has recovered back up to $22.60today. Silver is now back to moving, in tandem, with gold. The fact that holders of silver did not follow the ‘bear raider’testifies that silver is sitting in strong hands.
Regards,
Julian D.W. Phillips for the Gold & SilverForecasters
Global Gold & Silver Prices |
| CAD | EUR | GPB | JPY | CHF | USD | | |
| | | | | | | | |
Silver | 22.86 | 17.27 | 14.68 | 2,284.49 | 21.57 | 22.21 | | |
Gold | 1,401.98 | 1,059.34 | 900.44 | 140,095.77 | 1,322.90 | 1,362.26 | |
-- Posted Tuesday, 21 May 2013 | Digg This Article | Source: GoldSeek.com