-- Posted Thursday, 6 June 2013 | | Disqus
Gold Today –New York closed at $1,402.10 up nearly $4, yesterday, after which Asia took it down to $1,397, before London lifted it to $1,402.50. It then Fixed lower at $1,399.50 up $3 and in the euro at €1,066.692 down nearly €2 while the euro was stronger at €1: $1.3112. Ahead of New York’s opening gold stood at $1,401.40 and in the euro at €1,068.49.
Silver Today – Silver closed at $22.52 in New York yesterday. Ahead of New York’s opening silver stood higher at $22.52.
Gold (very short-term)
The gold price will see more consolidation with a slightly stronger bias, in New York today.
Silver (very short-term)
The silver price will see a more consolidation with a slightly stronger bias, in New York today.
Gold & Silver – The Indian government raised duties on imported gold from 6% to 8% yesterday in the hopes of reducing imports of gold. As usual in India, nothing is what it seems to be. Visible gold trading will diminish as the large firms whose figures are visible to government are pressured to cut back on imports, but to gold companies not so visible, will turn to smuggling of gold. After all an 8% addition to profits is a very good incentive for smugglers. And, what’s more retail buyers won’t see this as a crime and will buy this gold freely. The government will be happy because they will be able to report their policy a success based on reported numbers. Meanwhile, Dubai’s gold sales will rise as that is the traditional source of supply for smugglers. We may sound cynical, but this is the reality established in history. Meanwhile, the gold price reflects such cynicism standing currently at a higher level than yesterday.
We treat the Indian market view of gold as completely different from the developed world. China is likewise driven by different forces found in the developed world.
After the frantic rush to buy physical gold when it tumbled so dramatically from over $1,600, demand has subsided from those levels. But this demand remains historically high for reasons that were there before the fall. China is still in the process of re-stocking from that rush as are other suppliers. As this stock comes in so we expect premiums to fall as supply becomes adequate to satisfy demand. But this will not slow demand. This won’t happen until prices are a lot higher.
Yesterday saw 0.917 of a tonne of gold bought into the SPDR gold ETF and Gold Trust in the U.S., after yesterday’s sale of 1.975 tonnes. The market closed nearly $4 as a result. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]
Silver – The silver price barely moved yesterday holding its ground waiting a new move from gold.
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
1 day ago
-- Posted Thursday, 6 June 2013 | Digg This Article | Source: GoldSeek.com