Gold And Silver Market Morning…Gold Continues Consolidating!

May 3, 2017

Gold Price –New York closed at $1,256.90 yesterday after closing at $1,257.20 Tuesday. London opened at $1,254.00 today. 

Overall the dollar was slightly weaker against global currencies early today. Before London’s opening:

 -         The $: € was weaker at $1.0912 after yesterday’s $1.0908: €1.

-         The Dollar index was weaker at 99.08 after yesterday’s 99.13

-         The Yen was barely changed at 112.16 after yesterday’s 112.14:$1. 

-         The Yuan was stronger at 6.8921 after Friday’s 6.8969: $1. 

-         The Pound Sterling was stronger at $1.2923 after Friday’s $1.2875: £1.

Current gold prices is many currencies: http://www.gold-eagle.com/

The Shanghai Gold Exchange was trading at 280.70 towards the close today. This translates into $1,261.78. New York closed at a $4.88 discount to Shanghai’s close yesterday. London opened at a discount of $7.78 to Shanghai’s close today.

LBMA price setting:  The LBMA gold price was set today at $1,253.95 from yesterday’s $1,255.80. 

The gold price in the euro was set at €1,148.88 after yesterday’s €1,151.27.

Ahead of the opening of New York the gold price was trading at $1,254.20 and in the euro at €1,149.06. At the same time, the silver price was trading at $16.81. 

Silver Price –Silver closed at $16.83 yesterday after $16.89 at New York’s close Monday. Should the gold price return to an upward path, we see silver racing higher than gold’s rise.

Gold (very short-term) The gold price should continue to consolidate in New York today.                                                                                              

Silver (very short-term) The silver price should continue to consolidate in New York today. 

Price Drivers

The gold price remains in a vulnerable position, capable once more, of making a strong move either way. A glance at the fundamental factors shows a rise in the dollar gold price remains more likely than a fall. What’s more, we note that despite this vulnerability all we have seen by way of opportunist, speculative attacks have been dealers marking down prices in expectation of sales. The lack of bear raids from New York, tells its own tale about the state of the gold market, particularly the physical gold market. Should they continue to be absent, it would be a piece of solid evidence that the influence of COMEX over the gold price is waning.

The unstoppable shift of gold bullion to the east.

As we pointed out in the piece on Swiss gold exports demand from Asia remains very strong indeed. The refineries in Switzerland have been working 24 hours a day and 6 days a week to convert gold into metric measurement bars. This has gone on for many years now and is set to continue for the foreseeable future. It is quite remarkable that the developed gold world is quiet on the subject because it is only a matter of time before the western gold markets becomes secondary markets to Shanghai. [For our forecasts, subscribe through www.GoldForecaster.com ]

The Fed

We expect no actions from the Fed today, but as usual, any slight change in the language of the statement will affect financial markets across the globe. The recent weak data in the U.S. is expected to be temporary but we would look to the Fed’s statement for such assurances. If it is a concern to the Fed, we expect the gold price to benefit.

The Fed must be frustrated by the delay in the implementation of President Trump’s election promises, to which their policy should be riveted. They cannot afford to be out of step with government, which now seems unable to deliver on their promises, so remain directionless until the way forward for government is clarified.

Gold ETFs – Yesterday saw no sales or purchases from or into the SPDR gold ETF or the Gold Trust. Their holdings are now at 853.362 tonnes and at 203.82 tonnes respectively.

Since January 4th 2016, 255.828 tonnes of gold have been added to the SPDR gold ETF and to the Gold Trust.  Since January 6th 2017 45.772 tonnes have been added to the SPDR gold ETF and the Gold Trust.

Julian Phillips is the Founding Partner of Gold Forecaster - Global Watch and Silver Forecaster [incorporating Platinum]. Mr. Phillips analyzes the gold, silver, and platinum market alongside the macro economic currency aspects of these precious metals. He covers the shares involved in these sectors and publishes numerous articles on specialist websites concerning precious metals. Mr. Phillips is also a specialist in Exchange Controls and international currencies. He has qualified to be a member of the London Stock Exchange. His working life has focused on Gold/Currencies/Fund Management and now Silver and Platinum. Additionally, Mr. Phillips has spent some years in capital creation in currency distressed countries through exchange control incentives. Mr Phillips is also the Chairman of Stockbridge Management Alliance Ltd. a company that offers gold storage in a way designed to prevent its confiscation should such an order be issued in any country. His websites are at http://www.goldforecaster.com  and http://www.silverforecaster.com/.

The world’s largest gold nugget is 61 lbs, 11 oz and is on display in Las Vegas.

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