Gold and Silver Market Morning: Nov-25-2014

Gold Today – The gold price closed up at $1,199 in New York on Monday.London held it there ahead of the Fix. It was Fixed at $1,202.25 up $6.25 and in the euro at €966.594 up €1.922, while the euro stood slightly stronger at $1.2438. The volumes of net gold traded were one seller selling 18,000 ounces and two buyers buying 10,000 ounces before the pro-rata process kicked in. Ahead of New York’s opening, gold was trading at $1,202.00 and in the euro at €966.59.

Silver Today – The silver price closed in New York at $16.55. Ahead of New York’s opening was trading at $16.68.

Gold _{(very short-term)} The gold price will consolidate around $1.200 in New York, today.

Silver _{(very short-term)} Silver will consolidate alongside gold, in New York, today.

Price Drivers

In New York, there were no sales or purchases from or to the SPDR gold ETF but a sale of 0.42 tonnes from the Gold Trust yesterday. The holdings of the SPDR gold ETF were at 720.914 and at 160.00 tonnes in the Gold Trust.

Gold inventories in the U.S. are falling to extremely low levels now. The implications of this are that U.S. banks and funds are not in a position to launch a full blown bear raids on the gold price. While COMEX may dump a huge number of contracts onto the market, they are sterile in terms of their impact on the gold price as they do not involve physical gold sales. These, alone, are needed to squash the gold price. Even such physical sales have no impact unless they are followed by others selling physical gold, because such ‘raids’ are entered into with the intention of buying back such gold, or, as we see today, inventories of gold are depleted. Such is the case now, where inventories are very low. London believes it still has the liquidity to impact the gold price through professional speculation, but even there with the massive offtake of gold to Asia, that is persistently ongoing, such liquidity becomes depleted. With this in mind it is becoming increasingly risky to attempt such bear-raids.With smaller amounts of physical gold available for such raids, bears find the time of day in gold’s 24-hour market when trading is at its thinnest [say lunchtime Shanghai or at close of business] to raid. But again if there is no investor follow through selling, these positions have to be closed, limiting impact to the very short-term.

The Iran nuclear deal deadline has been postponed for six months. The implications are that both the U.S. and Iran want to agree a deal. We believe a deal will be reached and have far reaching effects on the Saudi Arabian attitude to the U.S., oil pricing and the use of the dollar in oil pricing as well as a shift in the balance of power in the Middle East. This will be gold positive. [Get the bigger picture - Subscribe to www.GoldForecaster.com & www.SilverForecaster.com – to protect against confiscation and penalties -see www.Stockbridgemgmt.com]

Silver– The silver price is moving with gold and will keep doing so in the future irrespective of its fundamentals. www.SilverForecaster.com

Kind Regards,