If gold can hold its overnight gains it will go stronger, today in New York.

Silver will move ahead if gold does, today in New York.

Price Drivers

The gold and silver markets may well come to life today if gold can hold above $1,355. After many days of New York setting the price pace, last night Asia kicked into action taking the gold price up $10 in their early afternoon. London pulled it back only slightly. We warned of the strong move yesterday and today may well see its direction confirmed. While it may appear that gold has moved easily up above $1,300, it has battled all the way, moving up in increments of a few dollars on each move, holding there as it firmed its position before moving higher again. There seems to be little volatility to the moves, more a steady strong rise, taking out resistance each step of the way. It is a flowing tidal move upwards.

The dollar remains at yesterday’s level, as do other currencies, so we see this is a strictly gold and silver play, not linked to currency moves.

There were no purchases or sales into the SPDR gold ETF [GLD] or into the Gold Trust, on Tuesday, which left their respective holdings at 812.696 tonnes and 165.14 tonnes. Any day we see purchases or no sales is positive for the gold price.

The one day strike in India yesterday was well attended as the gold industry there objected to government duties and restrictions on gold and silver imports. We expect the Finance Minister to make a statement and perhaps change these restrictions in the budget, due out at the end of March, ahead of elections. If he does, then a major new element of demand will be unleashed on the global market already rising because of high demand.