Gold Today – Gold closed in New York at $1,622.80, the day before the holiday in the States yesterday. A quiet London pulled it back to $1,613.50 at the p.m. Fixing. The morning Fix today the 5^th July was set at $1,616.75 and higher in the euro at €1,292.986, up €8 on yesterday’s p.m. Fixing, while the euro stood at €1: $1.2504 down 80 cents. The euro stood at €1: $1.2502 after the Fix. Ahead of New York’s opening gold stood at $1,618.00 in the middle.

Silver Today – Silver was higher in London by $28.27 up 18 cents. Ahead of New York’s opening at $28.26 again.

Gold _{(very short-term)}

Gold should remain steady to weaker today, in New York.

Silver _{(very short-term)}

Silver should remain steady to weaker today, in New York.

Price Drivers

Gold & Silver – While the tone in the gold and silver markets remains good, the strength of the metals was disguised by this steadiness as the euro weakened. Ahead of New York the market remained quietly firm, in a market that was thin, ahead of the return from a day’s holiday for Independence Day. As we said yesterday, “There remains a low net long speculative position on COMEX. Add to these the short positions in both the physical and derivatives market and you see the potential for short covering.”

With these metals battling overhead resistance now, traders in New York will show their views on the direction by the way they drive the gold and silver prices. Will they feel that their short positions are vulnerable and switch to long positions as they deem the technical position has changed with gold above $1,600 again? Or will they drive the prices back down to support? [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.]

In markets as quiet as the gold market at the moment, traders have a greater ability to move prices easily. Yesterday’s absence of the New York trading and speculative communities demonstrated this for the gold price barely moved throughout the day as the gold Fixings dominated prices. The change from the quietness of gold and silver prices to today’s volatility will highlight just how traders and speculators influence the market. They will remain fixated on the charts of Technical analysis. As such expect New York to give us the price direction for the rest of the week.

Silver – The silver price is also showing the same strength as gold, as the dollar strengthens and silver, follows the dollar, alongside gold.

Regards,

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