-- Posted Wednesday, 28 August 2013 | | Disqus

Gold Today –New York closed at $1,415.50 up $13.10 on Tuesday. Asia took it higher to $1,433.00 ahead of London’s opening. The gold price was Fixed at $1,425.50 up $14.50 and in the euro at €1,066.034 up €8.50. Ahead of New York’s opening gold was trading at $1,425.30 and in the euro at €1,068.08.

Silver Today – Silver closed at $24.46 up 16 cents in New York on Tuesday. Ahead of New York’s opening it traded at $24.80.

Gold _{(very short-term)}

The gold price should pause and consolidate with a stronger bias, today in New York.

Silver _{(very short-term)}

The silver price should pause then go stronger, in New York today.

Price Drivers

Gold & Silver – The potential for developed world, political intrusion into the Middle East-wide, sectarian conflict has the danger of escalating into a politics versus religion problem far wider than the cause of Syria’s use of chemical weapons. We see those investors buying gold as a result of this growing situation, coming from the Middle East primarily and potentially central banks, not Indian or Chinese investors. As a result this demand is in addition to Asian demand ahead of the seasonal rise in gold demand. If the intrusion by the U.S. is limited to specific targets on a once-off basis then this demand is not expected to be lasting. If it escalates then we expect Middle East demand to become long-term. We wait to see what happens next.

Without this potential new demand factor, current demand from Asia is more than sufficient to keep the gold price supported and rising.

Now add to this the resurgent demand for physical gold from 14 central banks across the world and we see supply being overwhelmed in the final quarter of 2013. We expect these combined events to change many commentators’ perceptions of the gold market in 4^th quarter 2013. And this is without the next steps to a multi-currency monetary system looming in the months and years ahead. [We cover that in our weekly newsletter - Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com] 

Yesterday saw 0.91 of a tonne of gold purchased by the SPDR and Gold Trust gold ETF.  The total of the SPDR gold ETF changed on Tuesday holding to 921.030 tonnes and the holdings of the Gold Trust stand unchanged at 178.2 tonnes, together totalling 1,098.329 tonnes. 

The Indian Rupee continues to tumble and is down to Rs.68.10 to the U.S. $ with more still to go. And still silence and inaction from the Reserve Bank of India.

Silver – The silver price is running up far faster than the gold price now.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

-- Posted Wednesday, 28 August 2013 | Digg This Article | Source: GoldSeek.com

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