Weaker dollar, no GLD sales, gold price recovers a little

Gold Today –New York closed at $1,131.50 yesterday after closing at $1,139.3 on the 19th December. London opened again at $1,133.80 today after yesterday’s $1,132.55.

Overall the dollar is slightly weaker against global currencies today.

         The $: € was weaker at $1.0398: €1 from $1.0384: €1 yesterday.

         The Dollar index was slightly weaker at 103.22 from 103.41 yesterday. 

         The Yen was weaker at 117.50: $1 from yesterday’s 118.19 against the dollar. 

         The Yuan was stronger at 6.9506: $1, from 6.9460: $1, yesterday. 

         The Pound Sterling was slightly weaker at $1.2335: £1 from yesterday’s $1.2373: £1.

 Yuan Gold Fix

Trade Date Contract Benchmark Price AM 1 gm Benchmark Price PM 1 gm
      2016  12    21

      2016  12    20

      2016  12    19

SHAU

SHAU

SHAU

/

263.02

262.67

/

262.19

262.78

$ equivalent 1oz @  $1: 6.9506

      $1: 6.9460

$1: 6.9510

  /

$1,178.16

$1,176.59

/

$1,174.06

$1,176.70

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.] 

The Shanghai Gold Exchange appears to be in the process of updating its website, which needs some more work as today,s prices are not yet accessible.

LBMA price setting:  The LBMA gold price setting was at $1,134.40 this morning against yesterday’s $1,132.75. 

The gold price in the euro was set higher at €1,086.59 after yesterday’s €1,091.39.

Ahead of the opening of New York the gold price was trading at $1,135.35 and in the euro at €1,087.50.  At the same time, the silver price was trading at $16.05.

 Silver Today –Silver closed at $16.059 at New York’s close yesterday from $15.99 on the 19th December. 

Price Drivers

Today the dollar is pausing in its rise and gold too is consolidating with a slightly stronger bias right now. There were no sales from the gold ETFs yesterday, which has assisted the consolidation. If heavy ETF sales come in now the gold price will fall, if not we expect the gold price to continue rising.

Monte dei Paschi looks as though it is failing to convince bondholders or other investors to buy into the bank as shareholders, leaving the burden on the Italian government. We will know by the end of the week if the government will call for a bail-in or carry the burden themselves. The fear is that unless the state does buy in, an E.U. wide banking crisis would be triggered. If that happens gold will rise strongly.

Gold ETFs – Yesterday in New York, there were no sales from the SPDR gold ETF and no sales from the Gold Trust, leaving their respective holdings at 828.098 tonnes and 195.60 tonnes. 

Since January 4th this year, 223.228 tonnes of gold has been added to the SPDR gold ETF and to the Gold Trust. 

Julian D.W. Phillips 

 GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance  

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