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

Something Big, Bad And Ugly Is Taking Place In The U.S. Retirement Market
By: Steve St. Angelo, SRSrocco Report

Reconciling the Us Dollar Outlook with the Super Bullish Gold and Silver Cots...
By: Clive Maund

Bank Deregulation Back in Vogue: It’s time to dance the last fandango!
By: David Haggith

Mr. Trump: You May Not Want To Take Credit For The Stock Market Just Yet
By: Avi Gilburt

The Economic Collapse Began Long Ago
By: Gerold , The Burning Platform

The US Dollar - Looking For a Bounce
By: Mike Golembesky

Why Surging UK Household Debt Will Cause The Next Crisis
By: Mark O'Byrne, GoldCore

Trader Lanci says there's no 'fat finger' but plenty of market manipulation
By: Chris Powell, GATA

Ira Epstein's Precious Metals Video July-26-2017
By: Ira Epstein

Last Week’s Rally in Gold Stocks Erased
By: Przemyslaw Radomski, CFA

 
Search

GoldSeek Web

 
Gold and Silver Market Morning: July 11 2017 - Gold and silver want to confirm the bottom is in!


 -- Published: Tuesday, 11 July 2017 | Print  | Disqus 

Gold Today New York closed yesterday at $1,214.10. London opened at $1,210 today. 

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

 

 -         The $: € was stronger at $1.1396 after yesterday’s $1.1408: €1.

-         The Dollar index was weaker at 96.11 after yesterday’s 96.15. 

-         The Yen was weaker at 114.32 after yesterday’s 114.21:$1. 

-         The Yuan was stronger at 6.7995 after yesterday’s 6.8034: $1. 

-         The Pound Sterling was stronger at $1.2902 after yesterday’s $1.2873: £1.

 

Yuan Gold Fix

Trade Date

     Contract

Benchmark Price AM 1 gm

Benchmark Price PM 1 gm

      2017    7    11

      2017    7    10           

      2017    7    7

SHAU

SHAU

SHAU

/

267.12

269.34

 

Trading at 267.70

266.45

269.52

$ equivalent 1oz at 0.995 fineness

 @    $1: 6.7995

        $1: 6.8034

        $1: 6.7990    

 

 

/

$1,215.95

$1,232.15

 

Trading at $1,219.30

$1,212.89

$1,232.98

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.]

 

Both New York and London turned higher yesterday. New York rose to Shanghai’s level at the close yesterday and London today is pulling the gold price down leaving the differential with Shanghai at just over $9 lower than yesterday’s differential. All global gold markets are looking for a bottom still. But as we mentioned yesterday there is an almost osmotic pressure in London that is shifting physical gold to the Far East constantly, in line with the price differentials between London and Shanghai.

 

Arbitrage between London & Hong Kong

Yesterday we saw the announcement that dual-currency gold futures contract is now available in Hong Kong that is physically settled, linked to a gold contract which is traded on the new gold exchange in London as part of LMEprecious on the LME.

 

This has now taken what was essentially the sole domain of the Bullion banks down to the retail investor trading futures. But this contract is very different from the normal futures contract:

 

-      It is the first time there is a contract in two currencies [the U.S. $ and the Yuan.

-      This contract is not a cash contract but a physical delivery in Hong Kong of gold contract, and in London at LME Gold

-      It is the first and only on-exchange, spot to five-year ‘loco London’ contract in the world.

 

Why is it so important? It’s because investors can now arbitrage between Yuan futures, and the synthetic currency prices derived from dual currency gold contracts. Physical settlement is important, too. If these contracts were purely cash-settled, there could be a price discrepancy between the US$ and Yuan tranches.

 

We detail this major development more fully in the next issue of the Gold Forecaster [Subscribe to Gold Forecaster]

 

Silver Today –Silver closed at $15.66 yesterday after $15.56 at New York’s close Friday.

 

LBMA price setting:  The LBMA gold price was set today at $1,211.90 from yesterday’s $1,207.55.  The gold price in the euro was set at €1,063.26 after yesterday’s €1.069.40.

 

Ahead of the opening of New York the gold price was trading at $1,210.15 and in the euro at €1,061.63. At the same time, the silver price was trading at $15.53. 

 

Gold (very short-term) The gold price will try to confirm the bottom is in, in New York today.      

                                                                                              

Silver (very short-term) The silver price will try to confirm the bottom is in, in New York today.      

 

Price Drivers

The gold price is still searching for a bottom but appears to be settling above $1,200 for the time being. The main force driving it down is sales from the SPDR gold ETF. At the moment U.S. institutions are simply looking at the impact of higher interest rates and falling inflation on the returns gold can bring to investors. Such an attitude ignores long term realities in the global monetary system. However, it rules, at present. We expect that the huge amount of work done to date this year on the gold price above $1,200 will temper further falls, but let’s see!

 

We are the only publication we know of that discusses the Shanghai Gold Exchange in the context of a global gold market. We do this because the global gold market is evolving at a rapid rate. The Shanghai Gold Exchange is the largest physical gold Exchange in the world and trades around 90% of the world’s physically traded gold in the world [New York and London trade ‘paper’ gold contracts and trades over 90% of the world’s gold derivative contracts]. With the advent of the dual currency, physically traded, gold futures, contract traded both in London and in Hong Kong, western investors can now join the global gold market in physical gold. More importantly, this ability to arbitrage, as we have mentioned so often, enables global gold prices to be smoothed out. If successful, we will see another force removing price differentials between global markets.

 

Gold ETFs – Yesterday saw sales of 2.954 from the SPDR gold ETF but a purchase into the Gold Trust of 0.65 of a tonne. The SPDR gold ETF and Gold Trust holdings are at 832.391 tonnes and at 211.41 tonnes respectively.

 

Since January 4th 2016, 193.902 tonnes of gold have been added to the SPDR gold ETF and to the Gold Trust.  Since January 6th 2017 31.387 tonnes have been added to the SPDR gold ETF and the Gold Trust.

 

Regards,

 

Julian D.W. Phillips 

 

 GoldForecaster.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 ultimategoldtrust@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 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

Sf1,171.43

Sf1,172.73

US

$1,210.15

$1,212.75

EU

€1,061.63

€1,065.03

India

Rs.78,193.84

Rs. 78,239.35


| Digg This Article
 -- Published: Tuesday, 11 July 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.