Gold and Silver Market morning, December 05, 2012

Gold Today –New York closed at $1,715.20 yesterday. This morning, Asian dealers pushed prices down, unusually, to $1,705 before London opened. It was Fixed at $1,703.00 down $3.75 on yesterday’s Fix. In the euro it was Fixed at €1,300.794 down €5.354 while the euro was stronger at €1: $1.3092 and stabilizing. Ahead of New York’s opening, gold was $1,702.5 and in the euro at €1,301.01.

Silver Today – Silver closed in New York at $32.96 yesterday. In Asia and London’s start to the week, silver recovered to $33.05 in London, ahead of New York’s opening recovering faster than gold.

Gold _{(very short-term)}

Gold is expected to consolidate with a positive bias, in New York today.

Silver _{(very short-term)}

Silver is expected to consolidate with a positive bias, in New York today.

Price Drivers

Gold & Silver – Traders and speculators are really pushing gold down hoping that support will really break. Just as they thought they had done so the gold price recovered on Indian and Chinese demand plus unobtrusive central bank demand. This pulled it back from the $1,692 brink to this morning’s Fixing at $1.703.00. Having touched the bottom of the current consolidation patter it has turned back up. The consolidation is expected to continue in both silver and gold for the rest of this week before deciding to give a clear direction one way or the other. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]

The fall in the gold price was significant in terms of currencies. Gold fell while the euro rose. But the dollar rose against all currencies too, with the euro even stronger. We will be addressing the underlying pattern that shows the U.S. moving to a lesser dependency on the global economy. Pressure on branches of foreign banks in the U.S. to comply with the capital requirements as U.S. banks in the U.S.A.is a move we tie to the coming oil self-sufficiency in the next few years. Additionally there is a drive to get manufacturing jobs back inside the U.S. These moves point to a drive to a much higher level of self-sufficiency for the U.S. economy. We will see this begin to show in a far better U.S. Trade balance in the next few years.

More importantly for gold and silver, we see in these moves preparations for the dollar to lower its role as the world’s sole reserve currency. Taking this further, the level of global economic and trade integration will turn from a rising pattern to a falling one. Precious metal investors should attune themselves to these future developments, which are positive for the gold price in all currencies as it has always been important in such transitions.

Silver – Silver bounced back strongly as gold returned to the above $1,600 level today. Despite it robustness it will continue to move with the gold price.

Regards,

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