Silver Market Morning
Gold Today – Gold closed in New York at $1,619.6 ahead of the Fed’s FOMC meeting today. The Fixing in London today was set at $1,618.75. In the euro it was set at €1,274.807 €17 down. Ahead of New York’s opening gold stood at $1,611.32 and in the euro, €1,269.96 while the euro was at €1: $1.2688.
Silver Today – Silver slipped back to $28.43 in New York again held steady in London’s morning to $28.45. Ahead of New York’s opening at $28.33.
Silver (very short-term)
Silver may well be to weaker, today in New York.
Gold – After the G-20 were ‘encouraged’ by the intentions of the E.U. leadership the euro recovered two cents. But the ‘devil is in the detail’ and that remains far away from the intentions. There is now ‘talk’ of banking union and the E.U. bailout funds being used to buy debt-distressed nation’s sovereign debt. This requires political decisions which should arrive on Friday or over the weekend? The direction being pointed to now, is “more Europe, with growth stimuli” and moderate austerity. Let’s see how this translates into action? Meanwhile, this is roughly how the gold and silver market reacted, moving down only slightly after traders guessed the next way forward.
In India the monsoon is falling behind, being 41% of ‘normal’ levels. This will impact negatively on Indian farmers who will buy less gold if the monsoon does not improve. We wait to see if the urban Indian investors make up for their shortfall? As we have said many times, a stronger Rupee will prompt gold buying and a slowdown in re-cycled gold with a turn back to imports of gold from overseas. This is a potentially big factor going forward.
A bit further across the world away Chinese investors are making up for the shortfall from India’s gold imports as they continue to increase purchases now 18% up on last year. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver – Silver is cautious, waiting for gold to move and for more solid information on direction. Silver investors will be watching the FOMC meeting today carefully.
Julian D.W. Phillips for the Gold & Silver Forecasters