-- Posted Monday, 9 December 2013 | | Disqus
Gold Today –The gold price in New York rose to $1,229 up $7 on Friday but on Monday in Asia it was trying to fall, but only managed a fall of $1 before starting to rise through $1,231 ahead of London’s opening. London took it down to $1,229.30 ahead of the Fix, which was set at $1,228.50 down $2.25. In the euro it Fixed at €895.604 down just under €5.00. Ahead of New York’s opening the euro stood at $1.3720: €1 with gold at $1,228.60 and in the euro at €895.48.
Silver Today – Silver rose with gold to close at $19.50 up 14 cents in New York. Ahead of New York’s opening, it traded at $19.54.
Gold (very short-term)
The gold price should continue to consolidate, in New York, today.
Silver (very short-term)
The silver price should continue to consolidate in New York, today.
Price Drivers
The gold and silver prices are settling into a narrowing trading pattern at the start of the week. We therefore expect volatility to lower ahead of a strong move either way once the trading pattern forms a pennant then to move strongly once the tip of the pennant is reached. The dollar is still weakening at $1.3720 to the euro and may well accelerate its fall soon.
3 tonnes of gold was sold from the SPDR gold ETF on Friday and 0.76 of a tonne was bought into the Gold Trust. This was surprising because sales usually occur in both when they happen. The sales of gold from the SPDR gold ETF had no impact on the price whatsoever. We are watching these funds closely because they represent U.S. sales of gold. Once they cease, the market will react, because it will have lost an important source of supply. The SPDR gold ETF holdings now stand at 835.705 tonnes and the Gold Trust holdings at 168.97 tonnes. [Find out more from www.GoldForecaster.com and www.SilverForecaster.com to subscribe to our newsletters and visit www.StockbridgeMgMt.com to hold gold so it can’t be seized]
The start of the week saw China’s exports rise 12.7%. This reflects a global economy that is recovering [allowing China to benefit first, before the impact feeds through to the U.S. and rest of the developed world]. This is important to gold because it confirms that China’s wealth is continuing to grow robustly. With the Chinese favouring gold as a trustworthy investment the demand for gold will continue to burgeon there.
We feel it important that subscribers realize that this is not just gold sold in the West moving to Asia, but the gold market itself is moving to China. At some point this will be recognized in China and the development of the gold market structures there will accelerate. It will need the encouragement of the People’s Bank of China, but with the Chinese government favouring gold so much, we expect this will be only a matter of time.
Smuggling continues to thrive in India, as gold investors continue to buy gold against government decree. The turpitude of the Indian government fosters such law breaking.
Silver – The silver price is expected to continue to follow gold this week.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 week ago |
Franc | Sf1,095.67 | Sf1,099.12 |
US | $1,228.60 | $1,228.00 |
EU | €895.48 | €898.12 |
India | Rs.75,110.46 | Rs.75,423.76 |
-- Posted Monday, 9 December 2013 | Digg This Article
| Source: GoldSeek.com
