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 -- Published: Wednesday, 23 November 2016 | Print  | Comment - New! 

Gold Today –New York closed at $1,212.00 yesterday after the previous close of$1,208.30 London opened at $1,211.00.

Overall the dollar was stronger against global currencies.

-         The $: € was stronger at $1.0603: €1 from $1.0644: €1 yesterday.

-         The Dollar index was a weaker at 101.20 from 100.74 yesterday. 

-         The Yen was weaker at 111.06: $1 from yesterday’s 110.58 against the dollar. 

-         The Yuan was weaker at 6.9055: $1 from 6.8910: $1 yesterday. 

-         The Pound Sterling was weaker at $1.2380: £1 from yesterday’s $1.2491: £1.

Yuan Gold Fix

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle Eat eastward metric measurements are used against 0.9999 quality gold. [Please note that the 0.5% difference in price can be accounted for by the higher quality of Shanghai’s gold on which their gold price is based over London’s ‘good delivery’ standard of 0.995.]

Gold prices in Shanghai are $11 higher than New York’s close and $12 higher than London’s opening [allowing for the difference in the quality of gold priced in the different markets]. 

The dollar has started to rise again, climbing over the 101 dollar index level. Will it go higher and move into a bull market again? More importantly, will it cause gold to fall further? To us we see it building a base at $1,210 at the moment, which, if it holds is positive for gold!

London is trying to follow New York again today ignoring the fact the China is quite a bit higher. It is clear now that China can buy at the lower levels in London and ship the gold to China sucking more gold out of the west. Should the selling stop in the U.S. we see any attempt to get back into the gold market being met with higher prices than when they exited.

LBMA price setting:  The LBMA gold price setting was at $1,213.25 against yesterday’s $1,217.55. The gold price in the euro was set higher at €1,141.45 againstyesterday’s €1,145.07.

Ahead of the opening of New York the gold price was trading at $1,211.55 and in the euro at €1,140.34.  At the same time, the silver price was trading at $16.61.

Silver Today –Silver fell to $16.66 at New York’s close yesterday from $16.59, Monday. 

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

Russian central bank added around 48 tons of gold to its reserves during the month of October, which is the most it has bought since 1998. A great number of assumptions are made about why Russia varies its purchases, from a stronger Ruble to a change on Russia’s gold policy. 

China can buy and leave it with their buying agents and not take it into its reserves until another day. Both Russia and China are major gold producers so can take that production into reserves, but Russia does declare its monthly purchases. 

We are aware that central banks do not like to affect the gold price when buying and we are also aware that they are not keen to be predictable in their purchases. What is a practical ploy in buying is to not go to the market but to let the market come to them and just ‘accept the offer’ of gold from dealers when they are heavy with holdings. This does not affect the price but does remove available gold stocks from the market. 

With such heavy sales of gold from the gold ETFs [around 86 tonnes since the election] central banks in Russia and China were given a great opportunity to acquire stock. If we are correct we expect Russia to declare a large purchase next month.  [We will discuss this in future issues of the Gold Forecaster for subscribers!] - Subscribe -GoldForecaster.com - To ensure you can benefit from the future higher gold prices we will see then, you need to hold it in a manner that makes sure it can’t be taken from you.Contact us at admin@stockbridgemgmt.com to buy physical gold in a way that we feel, removes the threat of it being confiscated. We’re the only storage company that offers that!

Gold ETFs – There were sales of 3.855 tonnes of gold from the SPDR gold ETF and sales of 0.60 of a tonne from the Gold Trust yesterday, leaving their respective holdings at 904.91 tonnes and 205.78 tonnes. The selling in the U.S. based gold ETFs continued yesterday pulling back the gold price to support at $1,210. 

Since January 4th this year, 309.681 tonnes of gold has been added to the SPDR gold ETF and to the Gold Trust.

Silver –Silver continues to be subdued in the face of gold’s trying to build a base at $1,210. 

Regards,

Julian D.W. Phillips 

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance [Gold Storage geared to avoid its confiscation]