Gold and silver market morning: Gold price rising in dollar and euro

New York closed Friday with the gold price at $$1,157.30 up from $1,139.90. In Asia this morning gold rose to $1,165 ahead of London’s opening. The gold price was set at $1,164.20 up from $1,151.50 at the LBMA gold setting. The dollar Index was down at 94.72 from 94.82 and the dollar was trading against the euro at $1.1379 down from $1.1362. In the euro the fixing was €1,023.11 up from €1,013.47.  Ahead of New York’s opening gold was trading at $1,167.00 and in the euro at €1,025.57.  

The silver price closed at $15.84 up 14 cents over Thursday’s close. Ahead of New York’s opening, silver was trading at $16.00.

Price Drivers

Are we seeing gold break out above $1,160. We are now watching to see if there is follow-through to take it higher. So far that level is holding. If we see more convincing rises, gold will have broken upwards and heading for its next target.

There were no sales or purchases of gold into or from the SPDR gold ETF or the Gold Trust. The rise in the gold price came from COMEX.  This leaves the holdings of the SPDR gold ETF at 687.196 tonnes and 160.62 tonnes in the Gold Trust.

It is extremely important to note that this was not only the gold price rising in the dollar, but the dollar falling against gold! It also rose well in the euro too.

The economic state of nations is not critical to the gold price. It is the exchange rate resulting from that scene that is. But with interference in exchange rates by the different authorities in various ways, distortions have occurred in their values. At the same time confidence in those values has waned. We are therefore moving into an era where these distortions impact on confidence in the monetary system. The gold price moves against currencies, so we are told, but we are seeing the start of an era of currencies moving against gold. This development is seen in so many currencies, outstandingly against the Ruble, other emerging currencies, as well as the euro and the dollar. With a bull market in the dollar seemingly fading in the face of U.S. monetary authorities wishes, we expect to see more progress on the gold price front, in the dollar.

U.S. investors have a history of buying on the rise as the profit motive is so well entrenched. In the Far East where massive demand dominates the fundamentals of the gold market, we see buying happen when a fall is overdone or when a bottom is established. Far Easterner investors buy gold and silver to protect against financial adversity, as well as to keep their savings out of sight of the nation’s authorities.

Silver is steadier today but if gold advances we see silver sprinting ahead.

Julian D.W. Phillips for the Gold & Silver Forecasters – www.goldforecaster.com and www.silverforecaster.com

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