-- Posted Friday, 9 August 2013 | | Disqus
Gold Today –New York closed at $1,312.50 up $27.40. Asia held it there before London pulled it back to trade at $1,308.30 ahead of the Fix. It then Fixed in London at $1,305.50 up $7.75 and in the euro at €975.491 up €11.2. Ahead of New York’s opening gold was at $1,310.90 and in the euro at €980.04.
Silver Today – Silver closed at $20.30 up 79 cents in New York yesterday. Ahead of New York’s opening it traded at $20.27.
Gold (very short-term)
The gold price will have a decisive day with a positive bias today, in New York.
Silver (very short-term)
The silver price will continue to follow gold but favoring the upside, in New York today.
Price Drivers
Gold & Silver – Yesterday saw sales of only 1.202 tonnes of gold sold after the sale of 6.613 tonnes from the SPDR gold ETF the previous two days before. The amount of gold sold yesterday was not enough to restrain the gold price and Chinese demand pushed gold back up above $1,300 once more. For the last three weeks gold sales from the SPDR gold ETF have run at around 7 tonnes. This left the total of the SPDR gold ETF and the Gold Trust at 1,086.927 with the SPDR gold ETF at 909.327 tonnes, while no sales were made from the Gold Trust leaving its gold holdings at 177.60 tonnes. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] With a more favourable economic outlook appearing in China, we expect to see an almost osmotic rise in Chinese demand for gold, to be held for the long term.
One of the key reason for gold to rise is because trust in the monetary system and the people who run it is shrinking. Central Bankers are bound to work through this system and at times must become very frustrated by the bankers they work with. The role of a bank as a corporation is to make profits. However, as the route through which government controls the economy and the money flows through the system, bankers have inserted themselves into every single financial transaction undertaken by everybody. As such they are a service industry and a fundamental one. Therefore, their profit orientation often clashes with their service to the public. That’s why the banking system, the prime beneficiary of quantitative easing [witness their repaired balance sheets] is now healthy, but they fear open lending because of the poor state of the economies in which they profit. As a result the underlying economy remains in a poor state. Catch-22! So when Mr Carney, head of the Bank of England makes the comments that they must refocus on serving the economy and stop doing ‘socially useless activities’ he was touching on a problem that goes back to the beginning of banking. That’s why gold will continue to be the value retreat it is.
Silver – The silver price continues to follow gold, cautiously.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,206.68 | Sf1,186.52 |
US | $1,310.90 | $1,288.65 |
EU | €980.04 | €965.03 |
India | Rs.79,545.41 | Rs.78,549.66 |
-- Posted Friday, 9 August 2013 | Digg This Article
| Source: GoldSeek.com
