Another big purchase into GLD as gold tests resistance

Gold TodayNew York closed at $1,337.10 after the previous close of $1,334.00 yesterday.  London opened at $1,335.20.

    • The $: € was slightly stronger at $1.1212: €1 from $1.1232: €1 yesterday.
    • The Dollar index was stronger at 95.41 from 95.26 yesterday.
    • The Yen was slightly weaker at 100.84: $1 down from 100.64: $1 yesterday against the dollar.
    • The Yuan was barely stronger at 6.6693: $1 from 6.6696: $1 yesterday.


  • The Pound Sterling was weaker at $1.2968: £1 from yesterday’s $1.3057: £1.


Yuan Gold Fix

Trade Date Contract Benchmark Price AM Benchmark Price PM
     2016  09  23

     2016  09  22







Dollar equivalent @ $1: 6.6693

$1: 6.6696





New York, Shanghai and London were roughly in line, while exchange rates calmed down with the dollar slightly stronger, in a normal market correction.

The gold price in global gold markets is holding higher levels.

LBMA price setting:  The LBMA gold price setting was at $1,335.90 against yesterday’s $1,332.45.

The gold price in the euro was set at €1,191.12 against yesterday’s €1,186.35.

Ahead of the opening of New York the gold price was trading at $1,338.30 and in the euro at €1,193.21.  At the same time, the silver price was trading again at $19.82.


Silver Today –The silver price rose to $19.90 at New York’s close yesterday up from $19.83, Friday.  

Price Drivers

Throughout yesterday gold prices continued to hold the higher levels. Bear in mind that it was dollar weakness, not gold’s strength that led to higher dollar gold prices. With today’s dollar settling at lower levels [as the Treasury and Fed want] we do not expect any gold price moves to be caused by dollar moves.

As we have pointed out frequently, the main gold price driver in the U.S. is demand for U.S. based gold ETFs. So, yesterdays over 6 tonne purchase should have kicked the gold price higher. But from $1,340 to $1,350 represents strong resistance as a break through this level would signal overhead resistance has been defeated. Certainly a major purchase of ETF shares would do it.

With the weekend ahead of us we do expect more market action today than any other day of the week.

Gold ETFs – There were purchases of 6.528 tonnes into the SPDR gold ETF (GLD) and of 0.30 of a tonne into the Gold Trust (IAU) yesterday, leaving their respective holdings at 950.919 tonnes and 223.81 tonnes.

Looking back over the week, we have seen overall U.S. demand for the shares of U.S. based gold ETFs strong and sales standing back waiting to see where gold prices will go from here. A critical question to ask is, “Have the major sellers exited the market?” If they have we could see decisive action from physical gold demand ahead.

Silver – Silver prices followed gold higher, but not in a rush, as the silver price moved strongly higher over the last few days, already. Overhead resistance on the gold price is heavy, so silver is standing back to see where gold will go today.

Julian D.W. Phillips | | StockBridge Management Alliance

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