Silver Market Morning
Gold Today –New York closed at $1,712.70 up $5.7. This morning, Asia and London dealers are trying to pull it back to $1,700. But it Fixed at $1,704.00 and in the euro at €1,316.440 €5 lower while the euro was at €1: $1.29.44 almost the same a yesterday. Ahead of New York’s opening gold stood at $1,704.33 and in the euro at €1,319.91.
Silver Today – Silver closed higher at $32.12 up 50 cents in New York yesterday. It then dropped to $31.71 as it continued to consolidate ahead of New York’s opening.
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 – The pervasive influence of the slowing global economy on the back of warnings from the world’s most responsible monetary bodies continues to erode market values including those of gold and silver. The gold price looks to be holding the $1,700 level but it needs further demand to lift it higher. With Indian demand back in the market ahead of Diwali and lower Rupee gold prices, demand from that quarter is rising. Likewise, Chinese demand is again on the rise as China’s economy looks to have bottomed and is turning up there, ahead of the changing of the guardians of that nation later this year. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]. We are of the opinion that central bank demand will rise in line with the amounts available from selling as the gold price pulls back from near $1,800 to $1,700. A rising gold price implies lower amounts of gold available and central banks won’t chase prices. The recent fall is the climate in which they pick up decent volumes.
The force of their buying is certainly supporting the trend of the gold price as they can easily adjust the amounts they buy subject to volumes offered. Certainly, there is no good reason why they will cease buying. The sales of gold by some central banks are good housekeeping moves, we believe, not changes of policy.
Silver – Silver continues to be moved by its monetary appeal not industrial demand.
Julian D.W. Phillips for the Gold & Silver Forecasters