Gold Today –Gold closed in New York at $1,285.30 on Tuesday and held there in Shanghai and London’s opening.

The $: € held at $1.1228 overnight. The dollar index is standing at 94.78 up from 94.46.

Yuan Gold Fix

Shanghai ran ahead of London and New York today but not by far. Later, London pulled it back to be set at the price below.

But the important factor to note is that the gold price is holding above $1,280, or above overhead resistance that is becoming support. As we said yesterday though, there is certainly enough going on in the currency world to cause volatility.

Global financial markets are tensioning up in preparation for next week’s Brexit vote, with the Yen hitting new recent highs at 106.21: $1, as global equities continue to rise slightly to ‘toppy’ areas.

As we have said in the past, equities are rising because they are the only place left where there is yield, not because a rosy future lies ahead. The huge danger in this is that if and when interest rates do rise, both bonds and equities will tumble!

LBMA price setting: $1,282.00 up from Tuesday 14th June’s $1,279.40.

The gold price in the euro was set at €1,141.79 down from Tuesday’s €1,147.83.

Ahead of New York’s opening, the gold price was trading at $1,282.35 and in the euro at €1,141.85.

Silver Today –The silver price closed in New York on Tuesday at $17.38, down from Monday’s $17.42 a fall of 4 cents. Ahead of New York’s opening the silver price stood at$17.42.

Gold (very short-term)

The gold price will consolidate, in New York today.

Silver (very short-term)

The silver price will consolidate, in New York today.

Price Drivers

With the Fed completing its two-day meeting today and announcing their conclusions later today, markets are holding their breath to see if any surprises are sprung on us. We expect none. But we may hear Mrs. Yellen be less optimistic than the market expects and hopes. The persistent desire for higher interest rates, which the Fed indicated was on the way in summer, may well miss summer and autumn. We see winter as an appropriate time because of the cold damage winters can cause. The U.S. economic recovery may well be looking OK but the data threatens to weaken. In itself this prospect will put the Fed off raising rates. The global economy continues to weaken and will affect the U.S. Most importantly, a rate hike will cause the dollar to rise, something that will damage the U.S. economy.

Yesterday, we mentioned ‘a potentially devastating set of ‘ripple’ effects’’. We need to emphasize this. We are not simply talking about the ripples setting off other crises elsewhere, we are taking about a group of crises being set off and when synergized together, create an even larger global crisis in which precious metals will blossom.

We detail this potential more in our newsletters [website for subscription below].

Gold ETFs – On Tuesday the holdings of the SPDR & gold Trust rose as 2.376 tonnes was purchased into the gold ETF, leaving its holdings at 898.671. No purchases or sales were made in the Gold Trust, leaving its holding at 196.90 tonnes. This persistent buying is not simply holding prices up, but steadily draining London’s physical gold liquidity. We are under no illusion that once the ‘season’ for gold begins in September. Market physical shortages will shine through.

Silver –Silver is again marking time and could do so for the next week.

Regards,

Julian D.W. Phillips

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance

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