Gold Today –Gold closed in New York at $1,249.50 up from $1,245.80 on Thursday. On Friday morning in Asia, it held there before London pulled it back to $1,245 ahead of the LBMA price setting.

LBMA price setting: It was then set at $1,245.40, up from Thursday’s $1,257.65, on Friday.

Yuan Gold Fix: We are waiting for the publication of the Shanghai Gold Fix for yesterday afternoon and today’s Fixings and will report them once we have them. The SGE has not yet loaded them onto its website. We discuss these in our newsletters –subscribe now!

The dollar index is higher today, at 94.92 up from Thursday’s 94.45. The dollar is half a cent stronger against the euro at $1.1255 down from Thursday’s $1.1315.

The gold price in the euro was set at €1,105.65 up from Thursday’s €1,111.49.

Ahead of New York’s opening, the gold price was trading at $1,245.00 and in the euro at €1,105.83.

Silver Today –The silver price closed in New York higher at $17.00 on Thursday.Ahead of New York’s opening the silver price stood at $17.30.

Gold (very short-term)

The gold price will follow the dollar with a stronger bias, in New York today.

Silver (very short-term)

The silver price will continue to rise, in New York today.

Price Drivers

The gold price is following the euro at the moment with little action in the U.S. gold ETFs. When the physical action is small dealers will move prices in the opposite direction to the dollar. With today being Friday and gold now at the bottom of its latest trading range, sitting on support today may well be lively.

Mario Draghi and the E.C.B. did not raise rates, which was expected, but he did open the door to negative interest rates in the future. This sent the euro weaker, but as in the past we do not expect this to last. The determination of the U.S. market forces is for a lower dollar and we have no doubt that is what we are headed for. After all it’s one thing to talk and another to act. Germany’s wish to see the end of such stimulus was dismissed by Draghi, otherwise the euro would have been stronger today. In Japan the talk of deeper negative interest rates also weakened the Yen, to 111 against the dollar.

Dealer’s adjustment of gold prices was technical rather than demand/supply driven. But even on the Technical front the desire of Treasury/Fed to see the dollar hold or fall will rule, we believe.

Greece has reared its debt squashed head once more. With 25% of their economy gone in the midst of their debt crisis, the Creditors want to see more austerity in the form of higher taxes and less government spending. This will crush the economy even more and force a similar situation to appear, thereafter.

Hopefully, we are not too cynical when we say that Greece would have been better off to have left the E.U. and sought debt relief.

Gold ETFs – Yesterday saw no sales or purchases into or out of the SPDR gold ETF or the Gold Trust. This leaves their holdings at 805.032 and 187.56 tonnes in the SPDR & Gold Trust respectively.

Silver – The silver price is amazing all as it continues to soar. Today it is moving up at $17.30 despite gold holding at the bottom of its trading range.

Regards,

Julian D.W. Phillips

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance