Gold Today –New York closed at $1,366.60 down $6.40. Asia took it to $1,357.00 but then London pulled it back to $1,365 before it Fixed in London at $1,365.75 down $9.50 and in the euro at €1,020.282 down €12.00. Ahead of New York’s opening gold was at $1,366.65 and in the euro at €1,020.65.
Silver Today – Silver closed at $23.16 down 2 cents in New York yesterday. Ahead of New York’s opening it traded at $22.93.
Gold (very short-term)
The gold price should recover, today in New York.
Silver (very short-term)
The silver price will continue to be robust leading the way up, in New York today.
Price Drivers
Gold & Silver – Monday saw sales of the shares of the SPDR gold ETF of 3.005 tonnes worth of gold. In these last days of the ‘Doldrums’ in the global gold market [excluding China] the market remains vulnerable to sales from this ETF. What is puzzling is that there are days when there are zero sales, then suddenly a substantial sale such as this, which is enough to knock the price down. Surely sellers would do better to feed the market on a daily basis with enough gold so as to allow the gold price to continue rising and not hurt the price? Either this is bad dealing or dealing by someone who wants to drive the price down. As a result the gold price fell even though it was expected to rise. Despite this, the Technical picture of the gold price continues to improve. And such drops are healthy for the market. The total of the SPDR gold ETF now stands at 912.318 tonnes and the holdings of the Gold Trust stand at 177.60 tonnes, together totalling 1,089.918 tonnes.
The drama in India continues with the Rupee falling another 1.5% yesterday. The Indian Rupee now stands at Rs.63.60 down from 62.72 yesterday as foreign funds continue to leave the country. As a gauge of how serious the problem is, the imposition of Capital Controls in itself is a serious step. When politicians try to placate the public with calming reassurances, it often precedes more serious measures. What other emergency measures can we expect if the central bank fails to stem the outflow? We note the third resuscitation of a program to ‘harness’ locally owned gold. With imports being cut off already and the season when Indian gold demand goes into top gear, what more can we expect from government on the gold front, in the light of the exchange rate and Balance of Payments emergency. [We cover that in our weekly newsletter. Subscribe to our newsletters at www.GoldForecaster.comand www.SilverForecaster.com] We are told that imports of gold are to resume again in 10 days time. If so, the foreign exchange situation is not so serious. Let’s see if this ‘water’ clears?
Silver – The silver price showed its strength by falling only 2 cents yesterday, but London dealers pulled it down 51 cents ahead of New York’s opening
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
Today
1 day ago
Franc
Sf1,257.45
Sf1,275.53
US
$1,376.50
$1,376.50
EU
€1,020.65
€1,032.01
India
Rs.86,899.12
Rs.86,162.02
-- Posted Tuesday, 20 August 2013 | Digg This Article | Source: GoldSeek.com
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