Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Roughly 1% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 12 1 2017
By: Ira Epstein

COT Gold, Silver and US Dollar Index Report - December 15, 2017
By: GoldSeek.com

Gold Bullish on Fed Hike 2
By: Adam Hamilton, CPA

Europe, Brexit and the credit cycle
By: Alasdair Macleod

WGC: 2018 Set To Be A Positive Year For Price of Gold and Investors
By: GoldCore

GoldSeek Radio Nugget: John Embry and Chris Waltzek
By: radio.GoldSeek.com

Basing Phase Ending
By: Gary Savage

AlphaZero for President
By: George Smith

Ira Epstein's Metals Video 12 14 2017
By: Ira Epstein

 
Search

GoldSeek Web

 
Gold and Silver Market Morning: Dec 16 2016 - Gold and Silver stabilizing?


 -- Published: Friday, 16 December 2016 | Print  | Disqus 

Gold Today New York closed at $1,127.40 yesterday after closing at $1,142.60 on the 14th December. London opened again at $1,133.85 today.

 

Overall the dollar is stronger against global currencies today.

-         The $: € was stronger at $1.0441: €1 from $1.0478: €1 yesterday.

-         The Dollar index was stronger at 102.95 from 102.54 yesterday

-         The Yen was weaker at 118.17: $1 from yesterday’s 117.81 against the dollar. 

-         The Yuan was much weaker at 6.9463: $1 from 6.9352: $1 yesterday

-         The Pound Sterling was weaker at $1.2430: £1 from yesterday’s $1.2520: £1.

 

Yuan Gold Fix

Trade Date

Contract

Benchmark Price AM 1 gm

Benchmark Price PM 1 gm

      2016  12    16

      2016  12    15

      2016  12    14

SHAU

SHAU

SHAU

261.65

263.55

264.98

261.75

263.45

264.99

$ equivalent 1oz @  $1: 6.9463

      $1: 6.9352

$1: 6.9025

 

$1,171.59

$1,181.99

$1,194.58

$1,172.04

$1,181.54

$1,194.08

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle Eat eastward metric measurements are used against 0.9999 quality gold. [Please note that the 0.5% difference in price can be accounted for by the higher quality of Shanghai’s gold on which their gold price is based over London’s ‘good delivery’ standard of 0.995.]

 

Shanghai prices fell around 1% today, after New York’s fall of 1.3% signalling a calmer market despite the fall caused by ongoing ETF sales.  When translating Yuan prices into the dollar equivalent we see the ‘discount’ of New York to Shanghai prices rising to $44.19 the highest ever seen. Against London’s opening of $1,133.85 the London ‘discount’ was $38.19, again the highest we have ever seen. Once again this is accounted for by the dollar’s ongoing strength. 

 

This confirms that the moves in gold prices in the different markets are a reflection of currency movements not sales and purchases of gold so much. The arbitrage opportunities are huge for those selling gold to sell into China, not London or New York.

 

LBMA price setting:  The LBMA gold price setting was at $1,134.85 this morning against yesterday’s $1,132.45. 

 

The gold price in the euro was set slightly lower at €1,085.31 after yesterday’s €1,085.45.

Ahead of the opening of New York the gold price was trading at $1,135.00 and in the euro at €1,086.12.  At the same time, the silver price was trading at $16.08.

 

Silver Today –Silver closed at $16.00 at New York’s close yesterday from $16.80 on the 14th December. 

 

Gold (very short-term) The gold price will test current levels as a bottom, in New York today.      

                                                                                              

Silver (very short-term) The silver price will follow the gold price, in New York today.

 

Price Drivers

After the Fed’s announcement comes the discounting of the best possible scene in markets. Then comes rumination on the realities of life. Likewise in markets! The Fed’s confidence in the economy and the hopes that the future under Trump will see “America great again” are being discounted. The bond market is diving, as future rates will be much higher.

 

The euphoria is taking the U.S. equity market higher despite the interest rate future that we will see next year through 1919.

 

Such an immediate discounting of such a bright future will bring us close to the bottom in the gold price as U.S. sellers dump the gold in gold ETFs and turn to equities and the exported funds which sought greener pastures comes home. Once this process is complete and the dollar’s rise exhausted the bottom in the gold and silver price will be established.

 

Now balance these expectations against the real expectations, across the world and one sees the future for currencies, debt, stability and uncertainties painting a different picture. After the initial reactions to Trumpanomics and interest rates being seen now, the markets will settle down and the dollar’s rise [against U.S. interests] will be stabilized and likely fall back. Likewise, gold and silver prices will see a rally as Asia gobbles up the gold thrown up by the selling in the U.S., with prices moving back up to Shanghai prices, as the Yuan continues to fall.

 

The scene in the E.U. is worsening as interest rates are being held down through Q.E. for another year. Apart from the Italian banking crisis moving towards dramatic events [Monte dei Paschi] the Greek debt crisis is back on stage as well. 2017 promises to see the E.U. and the euro in trouble as a result.  Either of these could spark an even bigger crisis than markets are currently factoring in for the euro and E.U.

 

A President Trump may defy all expectations of his international behaviour and do the unforeseen. We will have to wait until the ‘ides of March’ 2017, which we see the end of his first ‘100 days.’ We could be in a completely different world then with global power held by a very small number of men. We have looked at the potential scene being in place then and all of them include a solid place for gold with gold and silver prices looking to rise!

 

 Gold ETFs – Yesterday, there were sales of 7.118 tonnes from the SPDR gold ETF and no sales from the Gold Trust, leaving their respective holdings at 842.327 tonnes and 196.35 tonnes. As the ripples from the Fed’s statement diminish we expect the selling to slow to a trickle. This will remove the downward pressure on the gold price, leaving only the dollar affecting the price negatively.

 

Since January 4th this year, 238.204 tonnes of gold has been added to the SPDR gold ETF and to the Gold Trust.  So far this year over 162 tonnes have been sold out of these two funds.

 

Regards,

 

Julian D.W. Phillips 

 

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance  To ensure you can benefit from the future higher gold prices we will see then, you need to hold it in a manner that makes sure it can’t be taken from you. Contact us at admin@stockbridgemgmt.com to buy physical gold in a way that we feel, removes the threat of it being confiscated. We’re the only storage company that offers that! – We’re Shari’ah compliant!]

 

About GoldForecaster.com Service: 

 

We focus on keeping our readers on top of the emerging Gold bull market with a global fundamental and technical overview. Members gain access to our comprehensive, weekly report with the latest Gold market news, price analysis, along with coverage of other key markets. Economic and monetary topics are covered as well, along with many other influences that have an impact on the Gold market. 

 

Try a $99 trial subscription and gain immediate access to the latest weekly Gold Forecaster Newsletter!

  

Global Gold Price (1 ounce)

 

Today

yesterday

Franc

Sf1,166.72

Sf1,163.78

US

$1,135.00

$1,129.50

EU

€1,086.12

€1,083.66

India

Rs.76,914.98

Rs. 76,676.11

China

Y 7,898.01

Y 7,833.76

 
| Digg This Article
 -- Published: Friday, 16 December 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

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, its affiliates or advertisers. GoldSeek.com 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, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.