Gold & Silver Market Morning

Gold Today -New York closed at $1,204.50 up $5.50 on Friday in NY. Asia took it up to $1,208 with London holding it there ahead of the LBMA Gold Price. The LBMA Gold price was set at $1,203.25 down $1.30. The euro equivalent stood at ?1,118.83 up ?7.11 against a weaker $: ? rate of $1.0753 against yesterday's $1.08355.Ahead of New York's opening, gold was trading lower in London at $1,198.30 and in the euro at ?1,115.68.

Silver Today - The silver price closed at $16.26 down 3 cents on Friday. Ahead of New York's opening it was trading at $16.05.

Gold _{(very short-term)} The gold price will continue to consolidate, then make a strong move either way, in New York today.

Silver _{(very short-term)} The silver price will continue to consolidate, then make a strong move either way, in New York today.

Price Drivers

The dollar began the week at $1.0781 and the dollar index at 97.52 showing a consolidating dollar more than a rising euro. Gold moved through its trading range, ahead of New York's opening. Once again the gold price was essentially moved sideways ahead of New York's opening confirming the tightness of the trading range implying a strong move anytime.

The E.C.B.' Draghi told the media on Friday that it was pointless to short the euro. History shows that when a central banker attempts to stall the movement of a market trend, it is taken as an incentive to do the opposite. We don't see why this time an exception should be made. As we said last week, "The factors that drove the dollar higher remain in position and the trend remains for a stronger dollar." After all, the E.U. is gaining competitiveness enormously by the fall in its exchange rate.

To us the Greek situation is becoming more transparent as Greece said it won't renege on election pledges to end austerity measures. The Deputy Prime Minister said, "We don't budge from our red lines." Now look at the laid back attitude of the Prime and Finance Ministers of Greece and we see them waiting for the E.U. to give a solution as they are unlikely to do more. Unless the E.U. offers more money Greece will be ejected from the euro. The tragedy will therefore grind on until June with the euro tending to weaken until then [we remind readers that the euro trend is down while E.U.Q.E. continues through to Sept 2016].

There were purchases of 2.988 tonnes into the SPDR gold E.T.F. but no change in the Gold Trust on Friday. The holdings of the SPDR gold ETF are at 739.069 tonnes and at 165.28 tonnes in the Gold Trust.

From today onwards we expect Indian demand to subside as the festival season comes to an end.Subscribe www.goldForecaster.com

Silver- Silver is discounting a fall in the gold price. Subscribe www.SilverForecaster.com ]

Regards,