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

For Clues On The Economy, Follow The Money
By: Dave Kranzler

Zinc One Announces Approval of Permit for 124 Drill Platforms on the Bongará Zinc Mine Project, Peru
By: Zinc One Resources Inc.

Yet Another Reason The Tax Bill Stinks
By: Rick Ackerman

Gold Seeker Closing Report: Gold and Silver Trade Mixed With Stocks
By: Chris Mullen, Gold Seeker Report

Gold And Cryptos Destroy Fiat
By: Stewart Thomson

Mike's New Crypto Documentary And Large Silver Purchase
By: Mike Maloney

CPM Group’s Jeff Christian Responds “NEGATIVELY” To The SRSrocco Report On Silver Investment Demand
By: Steve St. Angelo

Low Silver Price Creating Buying Opportunities; SilverCrest Preparing for Maiden Resource
By: Nicholas LePan, SilverSeek.com

Bitcoin Hyper-Deflation, Gold and Silver Report
By: Keith Weiner

Cryptojunkies: Beware the Ides of December
By: Michael Ballanger

 
Search

GoldSeek Web

 
Gold and Silver Market Morning: May 05 2017 - Gold may have found a bottom should be volatile today!


 -- Published: Friday, 5 May 2017 | Print  | Disqus 

Gold Today New York closed at $1,239.50 yesterday after closing at $1,239.50 Wednesday. London opened at $1,235.05 today. 

 

Overall the dollar was weaker against global currencies early today. Before London’s opening:

 -         The $: € was weaker at $1.0964 after yesterday’s $1.0932: €1.

-         The Dollar index was weaker at 98.83 after yesterday’s 99.11. 

-         The Yen was stronger at 112.23 after yesterday’s 112.96:$1. 

-         The Yuan was weaker at 6.8994 after yesterday’s 6.8949: $1. 

-         The Pound Sterling was stronger at $1.2935 after yesterday’s $1.2887: £1.

 

Yuan Gold Fix

Trade Date

Contract

Benchmark Price AM 1 gm

Benchmark Price PM 1 gm

      2017    5    5

      2017    5    4

      2017    5    3

SHAU

SHAU

SHAU

/

277.91

280.58

/

276.41

280.04

$ equivalent 1oz @    $1: 6.8994

        $1: 6.8949

        $1: 6.8921

      

 

/

$1,253.68

$1,266.23

/

$1,246.17

$1,263.80

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle East 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.]

 

The Shanghai Gold Exchange was trading at 277.00 towards the close today. This translates into $1,243.76. New York closed at a $6.67 discount to Shanghai’s close yesterday. London opened at a discount of $8.71 to Shanghai’s close today.

 

We are learning that narrowing discounts are indicative of stabilizing global gold markets, ahead of the next move which may change the direction of the gold price.

 

LBMA price setting:  The LBMA gold price was set today at $1,239.40 from yesterday’s $1,235.85. 

 

The gold price in the euro was set at €1,130.99 after yesterday’s €1,130.18. As you can see this was largely dollar weakness, as the euro price barely changed.

 

Within the hour of the gold price setting on London the price was marked down $6. We find it difficult to accept that the gold price setting was out of line with the market, rather the market was bracing itself for more selling in the U.S. Ahead of the opening of New York the gold price was trading at $1,232.40 and in the euro at €1,124.66. At the same time, the silver price was trading at $16.36. 

 

Silver Today –Silver closed at $16.31yesterday after $16.47 at New York’s close Wednesday. As gold’s fall slows, we expect to see silver find a bottom and likely rise to discount one in the gold price. So today should be more volatile for silver than for gold.

 

Gold (very short-term) The gold price should be volatile either way, in New York today.      

                                                                                              

Silver (very short-term) The silver price should be volatile either way, in New York today. 

 

Price Drivers

The gold price globally is showing signs of having found a bottom at around $1,230. A look at this morning’s price setting in London shows a strength not reflected in the market price, after the fix. But we believe that the sheer volume seen at the Fixing should determine the gold price, not the immediate after market. Hence we expect volatility in New York.

 

Global balance of power shifts

We believe it is important for gold investors to look at the way the globe is developing both on the political front and the monetary fronts. When President Trump came to power many felt a great change was coming that would lead to America being great again. Markets responded but were disappointed as we have seen a retreat on those promises or a change in them. The difficulty and division experienced in the U.S. over the health care bill, which has just passed, is symptomatic of the way the U.S. government will perform in the future. Until some synergy is achieved in the U.S. in government, we have learned to lower expectations for the country.

 

Against that, in China, we have seen such synergy, albeit imposed on all sectors of the economy and politics by their governmental system. But the result is two decades of a massively growing economy that is certain to overtake the U.S. economy and continue to draw the bulk of global growth to itself. It is therefore inevitable at some point in the future that the U.S. accepts this future reality. But will it? Yesterday saw the Chinese unveil their equivalent of a 737 Boeing. It is inevitable that China will compete, at lower prices, with both Boeing and Airbus. Because it will [by government decree] capture the Chinese airplane market making immediately successful. Its growth will be at the expense of the developed world’s aero industry. This is symptomatic of the future global shape of the main global economic zones and shape of the global economy. The big question is, will the U.S. accept this loss of power quietly? We think not.

 

Oil

Another area where we expect drastic government action is in the oil industry. If non-U.S. oil producers fight U.S. shale producers, to keep market share, by increasing oil production and accepting lower oil prices [$30? Or lower?] to put shale producers out of business, we have no doubt that President Trump will impose duties on imported oil to protect U.S. producers viability. This will impact deeply on the monetary world as well as on oil.

 

These changes to the global economy and monetary system will benefit the gold price considerably, long term. [For our forecasts, subscribe through www.GoldForecaster.com ] Because of such structural changes to the global economy, already on the horizon, we believe long-term fund managers will soon begin to hold a significant proportion of their portfolios in gold bullion.

 

Gold ETFs – Yesterday saw sales of 0.287 of a tonne from the SPDR gold ETF and the Gold Trust saw sales of 1.20 tonnes. Their holdings are now at 853.075 tonnes and at 203.03 tonnes respectively. While the sale of 1.2 tonnes is large for the Gold Trust, total sales yesterday were not sufficient to hurt the gold price.

 

Since January 4th 2016, 254.751 tonnes of gold have been added to the SPDR gold ETF and to the Gold Trust.  Since January 6th 2017 44.695 tonnes have been added to the SPDR gold ETF and the Gold Trust.

 

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!

 

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 $89 trial subscription and gain immediate access to the latest weekly Gold Forecaster Newsletter! 

 

  Global Gold Price (1 ounce)

 

Today

Yesterday

Franc

Sf1,219.03

Sf1,225.22

US

$1,232.40

$1,234.35

EU

€1,124.66

€1,129.53

India

Rs.79,335.75

Rs. 79,263.79


| Digg This Article
 -- Published: Friday, 5 May 2017 | 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.