Gold & Silver Market Morning

Gold Today – The gold price closed at $1,282.00 down $0.40 on Wednesday’s level in New York. In Asia and London, gold prices were slightly higher in both the dollar and the euro.The gold price was Fixed at $1,288.00 up $3.00 and in the euro at €975.536 up €0.574, while the euro was stronger at $1.3202. Ahead of New York’s opening, gold was trading at $1,290.90 and in the euro at €978.99.

Silver Today – The silver price closed in New York at $19.44 up 4 cents. Ahead of New York’s opening it was trading at $19.80.

Gold _{(very short-term)} We expect gold to consolidate, in New York today.

Silver _{(very short-term)} We expect silver to consolidate, in New York today.

Price Drivers

There were sales of 1.496 tonnes from the SPDR gold ETF and none from the Gold Trust on Wednesday. The holdings of the gold ETFs stand at 795.597 tonnes in the SPDR gold ETF and at 165.96 tonnes, in the Gold Trust.As we reach the edge of the gold season it may serve you readers well to look at what lies ahead:

In the U.S. many investors see the gold price moving in the opposite direction to the state of the U.S. economy or the dollar. This ignores the fundamentals of the gold market.

In Europe the breakdown of the talks over Ukraine, yesterday, point to a crisis on the energy front and to stability and more sanctions, which are destructive to both sides. Instability is positive for gold in Europe.

In Asia the state of the monsoon has a direct bearing on the demand for gold in the final quarter of the year [smuggling negates to a large extent, government restrictions] and the first quarter of the year. In China demand for gold is being, we feel, misinterpreted as only the volumes entering Hong Kong. With continuing vibrant growth in China, the SGE volume figures are, we believe, more representative of demand there. The growing middle classes have not abandoned their love of gold.

In the Middle East gold represents money and wealth, so with the growth of chaos as the religious war sucks in different nations the demand for gold will grow.

In Russia, the government’s demand for gold continues strongly as its economy moves to a decline.

The oil price is set to fall strongly, which is a strange phenomenon bringing stimulation to some economies and falling cash flows to others. But excess dollars, now available, because of them not seeing so much demand, is bad for the dollar.

Now, how can we give proportion to these factors? Here is a clue;

The U.S. accounts for 7% of annual gold demand.

Europe accounts for 8% of annual gold demand.

The Middle East accounts for 20% of annual gold demand.

China & India accounts for 54% of annual gold demand.

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Silver– The silver price is quietly firm.www.SilverForecaster.com]

Regards,