Gold Today – The gold price closed at $1,326.8, down $1.70 on Tuesday in New York. In Asia prices held around that level. In London, the Fix was set at $1,326.75 up $1.00 and in the euro at €970.982 up €2.504, while the euro stood weaker at $1.3664. Ahead of the opening in New York the gold price was trading at $1,326.60 and in the euro at €971.09.

Silver Today – The silver price closed at $21.05 down 4 cents, in New York. Ahead of New York’s opening, silver was trading at $21.09.

Gold _{(very short-term)}

Gold should consolidate against resistance, in New York today.

Silver _{(very short-term)}

We feel that the silver price will wait for gold to give it direction and mark time, in New York today.

Price Drivers

There were no purchases of gold into the SPDR gold ETF or the Gold Trust in the U.S. on Tuesday. The holdings of the gold ETFs stand at 796.392 tonnes in the SPDR gold ETF and at 164.76 in the Gold Trust.  We expect any break above $1,330 by the gold price to see more buying into the gold ETFs, alongside short covering.

The foreign exchange markets were quiet today. But we do see the Indian Rupee strengthening to below Rs.60: $1.

In India gold imports have doubled on this time last year to 14.33 tonnes. The import restrictions of gold in India were imposed in August. However we should not read too much into these figures. The budget this month is inspiring all sorts of rumors as to how much the import duties are going to be lowered. We do not read anything into these rumors. What is clear is that if the government wishes to halt smuggling, they must reduce import duties to a level that it is not longer profitable to smuggle gold into the country. Right now we are being asked to focus on the impact on the country’s current account deficit, a useful scapegoat to the previous government’s inadequate management of the Indian economy. Mr. Modi’s government is expected to change this picture and is likely to show a different attitude to gold. However, this needs to be confirmed, which is why the upcoming budget is of importance to the gold price. [Subscribe www.GoldForecaster.com - see www.Stockbridgemgmt.com to protect yourself from penalties from holding your gold overseas when it is to be confiscated].

U.S. gold coin sales in June totaled 64,500oz, up 34% month on month reflecting a more positive perspective to gold by U.S. investors.

Turkish gold imports doubled to 24.3 tonnes in June, the highest since December 2013, up from 11.8 tonnes, in May. We expect to see rising demand from the mid-East in the months ahead.

Silver– Silver is not moving alongside gold’s gyrations at the moment but will rise once silver investors see it break current overhead resistance. [www.SilverForecaster.com]

Regards,

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

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 -- Published: Wednesday, 2 July 2014 | E-Mail  | Print  | Source: GoldSeek.com

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