-- Published: Thursday, 27 August 2015 | Print | Disqus
Gold Today –On Wednesday New York closed at $1,124.10 down $15.40. The dollar was stronger at $1.1335 at the close up from $1.1496, against the euro, with the dollar Index stronger at 95.19 up from 94.10 yesterday. This morning the LBMA gold price was set at $1,128.50 down $5.90. The euro equivalent was €999.03 up €8.98.Ahead of New York’s opening, gold was trading at $1,126.40 and in the euro at €998.67.
Silver Today – The silver price closed at $14.18 down 46 cents over Wednesday’s close in New York. Ahead of New York’s opening today it was trading at $14.24.
Gold (very short-term) The gold price will consolidate with a weaker bias today in New York.
Silver (very short-term) The silver price will consolidate with a weaker bias today in New York.
It is important to get a balanced perspective on the global financial market actions in the last few days because we tend to be emotional when such volatility happens. First, the Shanghai Stock Exchange has been treated as a casino where investments are expected to yield short-term trading gains [with government backing]. When China moved to float the Yuan the ripple set off global reactions. Government stepped in to try to show its support even allowing Pension funds to invest in the market [they have yet to do so].In backing off support for the equity market, China removed support for short-term traders. Please note the Shanghai exchange does not impact the Chinese economy but it is a side market that it not taken as seriously as it is in the developed world. Far more important is the capital liberalizing process at Municipal level where capital injections do reach the overall economy. The process of removing Capital Controls in China is set to see a cheaper Yuan, but in the process enhance the Yuan’s relevance in the global monetary system. What is most disturbing is that the Chinese equity market action should have set off sell-offs in the developed world! This tells us that the influence of short-term trading [prompted by demands for performance] is excessive in the developed world. Market liquidity is insufficient to prevent high frequency trading from creating the huge volatility that we have seen this week.
As for gold being part of this scene, it hasn’t been. It has behaved remarkably steadily in line with chart patterns. Gold is for long-term investing mainly, as we have seen this week.
Of more importance to the gold price is the approaching ‘gold season’ beginning next month.
There were no purchases or sales into or from the SPDR gold ETF or the Gold Trust yesterday. This leaves the holdings of the SPDR gold ETF at 681.105 tonnes and 162.07 tonnes in the Gold Trust.- Subscribewww.goldForecaster.com[See our new gold buying, transferring and storing operation:www.Stockbridgemgmt.com ]
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.