Gold & Silver Market Morning

Gold Today -New York closed at $1,185.10 down $7.90. Asia held the price at New York's close and then London took it down $2 at the opening. The dollar was stronger at $1.1261 but looked like weakening in London and the dollar Index was higher at 94.81.The gold price was set this morning at $1,183.35 down $10.35 with the dollar at $1.1224 and the dollar index stood at 95.05, yesterday. The euro equivalent was ?1,054.54 up ?3.19. Ahead of New York's opening, gold was trading in London at $1,183.60 and in the euro at ?1,054.90.

Silver Today - The silver price rose to $16.20 up 10 cents in New York. Ahead of New York's opening it was trading at $16.00.

Gold _{(very short-term)} The gold price will consolidate, in New York today.

Silver _{(very short-term)} The silver price will consolidate, in New York today.

Price Drivers

With the news that the Greek government had put forward a new set of proposals that covered pensions and taxation it appeared that the government was capitulating. However, details of these proposals were not made public. Listening to the IMF & E.U. reactions it seemed that they felt that real negotiations had only now started, but much more need to be done. Meanwhile, on the surface it appeared that more austerity had been accepted by Tsipras and his government, a step he said he would not take. Even with these new proposals he risks losing his support at home. Has he stepped into no-man's land? This week sees the negotiations taken to the final level, but it remains to be seen if an agreement is really possible. We continue to watch and wait without any assumptions. Are we at the climactic scene of the tragedy? We can't see the fat lady yet!In fact we see these proposals as the best that Tsiprias dare offer and yet the E.U. wants more. This leaves the two still far apart.

But global financial markets are reacting to these steps, becoming more like 'bookies' shops, betting on the hoped-for outcome, not on the current realities. Even the gold market is gyrating both ways, driven by speculative interest, not physical buying and selling. $20 up last week, $20 down yesterday but no break in pattern is yet seen. The market remains thin in London and New York [in particular] with volumes down to 40% this week over last week's levels. Consequently, no direction is being clearly given, so far to gold and silver or any other markets currently. We will have to watch the as yet unwritten scenes of the tragedy unfold during the next days of this week.

Should the Greek story be given so much importance by financial markets? We believe not, unless Greece does exit the euro, when the ramifications will affect the monetary world and make the euro stronger. If it is simply going to be more of the same old, same old, as Greece continues as an impoverished nation for the next generation then no, it should not affect gold or silver prices.

Gold investors in the SPDR disagreed with market movements yesterday and bought 3.578 tonnes of gold into the SPDR gold ETF with no change in the Gold Trust on Monday. The holdings of the SPDR gold ETF are at 705.475 tonnes and at 167.79 tonnes in the Gold Trust. Subscribe www.goldForecaster.com

Silver- Silver is steadier than gold, as it waits for real news. Subscribe www.SilverForecaster.com

Regards,