Silver Market Morning
Gold Today –New York closed at $1,722.1 down$18.90. This morning, Asia and London dealers lifted it to $1,725 before it was Fixed at $1,725.00 and in the euro at €1,321.029 €6 lower while the euro was at €1: $1.3058, barely changed. Ahead of New York’s opening gold stood at $1,725.40 and in the euro at €1,320.93.
Silver Today – Silver closed lower at $32.08 down 66 cents in New York on Friday. It then recovered to $32.18 in London and ahead of New York’s opening it stood at $32.19.
Gold (very short-term)
Gold will consolidate with a weaker bias, in New York today.
Silver (very short-term)
Silver will consolidate with a weaker bias, in New York today.
Gold & Silver – With Prime Minister Rajoy’s party winning the elections in Galacia an important province in Spain the Spanish Prime Minister has been empowered to ask for a bailout and to continue with his austerity measures. The request for a bailout is expected to be made in November or before. This is expected to strengthen the euro. The big question is, “Will it also lift gold and silver, or have they broken away from the price of the euro to the dollar?”
To give us perspective, the markets will see this move as staving off Spain’s bankruptcy but not resolving it. With Spain confirmed as a member of the Eurozone, Spain’s problems have been moved across to the E.U. Will this affect the entire E.U.? Yes, it will because it could precede Italy’s request for help. This could overburden the bailout fund. For the Eurozone’s financial crisis to be resolved, growth from ground-level consumer up, needs to be a reality and not just a hope.
Indian buying is palpable as gold import figures to India are now reflecting. We foresee scrap selling falling there as prices remain around current levels.
Silver – Silver is sitting on strong support.
Julian D.W. Phillips for the Gold & Silver Forecasters