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Gold Today – Gold
closed higher at $1,575.40 and in London’s early morning rose to
$1,577.80. The euro was slightly weaker in London at €1: $1.2539 50,
cents lower. It Fixed at $1,573.75 and in the euro at €1,255.666. Ahead
of New York’s opening gold stood at $1,572.30 and in the euro,
€1,254.93 while the euro was at €1: $1.2529. [To
follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today - Silver in
London rose to $28.55. Ahead of New York’s opening at $28.25.
Gold
(very short-term)
Gold should
show a weaker bias, today in New York or surprise with a strong move, either
way.
Silver (very
short-term)
Silver should
show a weaker bias, today in New York or surprise with a strong move, either
way.
Price Drivers
Gold – In
quiet global markets over the last few weeks, gold in Europe and Asia was
firm. This reflected the solid underlying tide in the gold and silver
markets. But with volumes on the light side in the open market traders carry
undue influence on prices. So today we expect to see the market change from
steadily, quietly, firm to a much more volatile scene as developed world
traders push markets both ways.
You may well ask, if China and Russia are buying
gold in large quantities for their reserves, why doesn’t this reflect
in a more volatile gold price?
The reason is that both these countries primarily
purchase locally produced gold direct from their miners, before it reaches
the market place. Thus it shows itself simply as a drop in supply and not a
demand factor. Where non-gold producing nations are buying on the open market
their influence is to remove stock from the market, further narrowing
supplies.
It’s demand in the ‘open market’
itself that moves prices. With only 5% of COMEX deals involving the movement
of physical bullion the direct impact of these speculators and traders is far
less than people believe.
The Indian Rupee keeps weakening and now stands at
Rs.55.84 from Rs.55.1975. This is now raising gold and silver prices in India.
Silver – Silver is waiting for New York to open before moving properly. We may
well see the silver price strongly influenced out of China soon, as silver
futures are dealt in Shanghai. The broadening of the market and increased
liquidity from there may exert a positive influence on the price too!
Regards,
Julian D.W. Phillips
for the Gold & Silver Forecasters
Global Gold Price (1 ounce)
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Today
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1 day ago
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Franc
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Sf1,503.05
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Sf1,503.65
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US
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$1,655.25
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$1,653.00
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EU
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1,250.76
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€1,251.32
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India
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Rs.87,045.46
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Rs.86,799.03
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