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Gold and Silver Market Morning: March-1-2016 -- Big physical buying in the U.S. ongoing!

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Published : March 01st, 2016
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Category : GoldWire

Gold Today -Gold closed in New York at $1,234.00 up from $1,233.00. In Asia on Tuesday, it rose to $1,245 ahead of London's opening. It then rose further to be set by the LBMA at $1,240.00 up from $1,234.15.COMEX's pricing is giving way to Asia. The dollar index is unchanged at 98.25.

The dollar is up against the euro at $1.0873 up from $1.0895 on Monday. The gold price in the euro was set at ?1,140.44 up from ?1,132.77.

Ahead of New York's opening, the gold price was trading at $1,246.05 and in the euro at ?1,145.00.

Silver Today -The silver price closed in New York at $14.80 up 15 cents.Ahead of New York's opening the silver price stood at $15.02.

Gold (very short-term)

The gold price will have a stronger bias in New York today.

Silver (very short-term)

The silver price will have a stronger bias in New York today.

Price Drivers

China continues to slow, but now with a reported slowdown in the services sector. While a great deal of fuss is made of China's slowdown the growth it provides to the rest of the world was always set to diminish as it replaces manufactured imports with locally manufactured ones.So we see no likelihood of China lifting the developed world out of its stagnation/recession. It is a long process that began 20 years ago and will continue for the foreseeable future.

Gold ETFs On Monday, in came another huge purchase of shares/gold into the SPDR gold ETF of 14.869 tonnes and a purchase of 0.90 of a tonne into the Gold Trust. The holdings of the SPDR gold ETF are now at 777.274 tonnes and at 189.42 tonnes in the Gold Trust.With such buying of physical gold going on the gold price is now steadily building a firm base from which to spring. U.S. investors are coming round firmly to the idea of a bleak future as painted by the most august of institutions in the world. With no effective government action to change this future even in the planning stage, gold can only have a bright future.

The Indian budget was a disappointment for gold investors there. The government has added a third level of taxes, a 1% sales tax to gold purchases now. It must be noted that each tax on gold is handled by a different government department, muddying the waters even more.

But the demand for a tax number from large buyers is far more of a deterrent for Indians do not like disclosing their financial picture. The need for financial privacy there was spawned by the corrupt use of such information by bureaucrats and tax officials in the past and remains a present danger. There is, as a consequence, two financial worlds, one of which is not disclosed.

So what these taxes do is to increase the profitability of smuggling. So any reduction in 'official' imports is matched by increases in smuggling, now very well established and immeasurable. Hence Indian demand is now moving up on all fronts.

Pent-up demand that was held back ahead of the budget is now coming back to the market, supporting the gold price even more. With the price holding around the $1,220 - $1,250 area price sensitive Asian buyers are beginning to accept these prices and returning to the market.

Protect yourself from Gold Confiscation: www.Stockbridgemgmt.com ]

Silver - Silver has re-affirmed its relationship with gold having recovered over 3% overnight. It must be understood that dealers will move prices when they feel that a fall is coming to protect themselves from buying silver when it is going to fall. When sales to them [purchases by them] arrive they don't want to be caught long. So when their expectations are not met and they find they have to sell silver at those low prices, they quickly mark up prices even on small buying [selling by them].

Regards,

Julian D.W. Phillips

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance

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Data and Statistics for these countries : China | Georgia | All
Gold and Silver Prices for these countries : China | Georgia | All
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Julian Philips' history in the financial world goes back to 1970, after leaving the British Army having been an Officer in the Light Infantry, serving in Malaya, Mauritius, and Belfast. After a brief period in Timber Management, Julian joined the London Stock Exchange, qualifying as a member. He specialised from the beginning in currencies, gold and the "Dollar Premium". At the time, the gold / currency world exploded into action after the floating of the $ and the Pound Sterling. He wrote on gold and the $ premium in magazines, Accountancy and The International Currency Review. Julian moved to South Africa, where he was appointed a Macro economist for the Electricity Supply Commission, guiding currency decisions on the multi-Billion foreign Loan Portfolio, before joining Chase Manhattan the the U.K. Merchant Bank, Hill Samuel, in Johannesburg, specialising in gold. He moved to Capetown, where establishing the Fund Management department of the Board of Executors. Julian returned to the 'Gold World' over two years ago and established "Gold - Authentic Money" and now contributing to "Global Watch - The Gold Forecaster".
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Julian ~ how important (relevant, irrelevant, trivial) are the Trump factor and the Sanders factor to the Gold and Silver markets in America ??
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Julian ~ how important (relevant, irrelevant, trivial) are the Trump factor and the Sanders factor to the Gold and Silver markets in America ??  Read more
Gypsy - 3/2/2016 at 9:46 AM GMT
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