Gold Today – The gold price closed at $1,265.20 down$22.10 on Tuesday in New York. In Asia and London, gold prices were slightly higher at $1,268.40.  The gold price was Fixed at $1,268.5 down $9.25 and in the euro at €965.667 down €13.727, while the euro was weaker at $1.3136. Ahead of New York’s opening, gold was trading at $1,268.20 and in the euro at €964.04.

Silver Today – The silver price closed in New York at $19.16 down 21 cents. Ahead of New York’s opening it was trading at $19.22.

Gold _{(very short-term)} We expect gold to have a weaker bias, in New York today.

Silver _{(very short-term)} We expect silver to have a weaker bias, in New York today.

Price Drivers

There were sales of 1.795 tonnes of gold from the SPDR gold ETF and 0.18 of a tonne from  the Gold Trust, on Tuesday. The holdings of the gold ETFs stand at 793.204 tonnes in the SPDR gold ETF and at 165.27 45 tonnes in the Gold Trust. 

The physical sales from the two Exchange Traded Funds were insufficient to cause such a fall in both gold & silver. With low volumes, still, in the markets the way forward for gold is to look for the point where demand comes in. In past weeks we published an article on China controlling the gold market. We believe this continues to be so. Lower prices are still seen as producing greater physical volumes in the market. At the moment falling gold prices may induce greater sales of physical gold from investors triggering stop losses and from fear of further falls. If this does not happen then investors may well not hold back and accept current prices.  This applies to China too. China’s appetite is not waning. It is ounce driven not price driven, except when prices fall too low. This could happen soon.

The Chinese international gold market is due to start trading on the 18^th September. We are sure that it would benefit that market if orders were held back until then.

The degeneration of the Ukraine crisis has certainly moved to a point where it is civil war and Russia is intervening. Today sees proposed sanctions on Russia disclosed. These still focus on financial matters. With a rapidly falling Ruble the proposal to shut Russia out of capital markets and possibly to shut it out of the SWIFT system will have a sufficient impact to hurt Russia as it will be shut out of the leading currency markets of the world. Russia will retaliate to the detriment of the Eurozone economy. It will certainly be an object lesson for other countries to realize that the dollar and the euro are not simply means of exchange or measures of value. Gold as such will be favored by this degeneration and, globally, governments will make moves to lessen their vulnerability to such politicizing of currencies. This hastens the fragmentation of the current monetary system. Subscribe to www.GoldForecaster.com – ensure your gold will not be confiscated and you not penalized -see www.Stockbridgemgmt.com .

Silver– The silver price will follow gold down. www.SilverForecaster.com]

Regards,

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

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 -- Published: Wednesday, 3 September 2014 | E-Mail  | Print  | Source: GoldSeek.com

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