Gold and silver consolidating in a narrowing band


Gold Today –New York closed at $1,253.60 yesterday after the previous close of $1,259.70.  London opened at $1,254.25.

–         The $: € was stronger at $1.1014: €1 from $1.1124: €1 yesterday.

–         The Dollar index was stronger at 97.79 from 97.09 yesterday.

–         The Yen was stronger at 103.60: $1 from 103.89: $1 yesterday against the dollar.

–         The Yuan was slightly stronger at 6.7140: $1 from 6.7160: $1 yesterday.

–         The Pound Sterling was weaker again at $1.2261: £1 from yesterday’s $1.2308: £1.

Yuan Gold Fix

Trade Date Contract Benchmark Price AM 1 gm Benchmark Price PM 1 gm
      2016  10  12

2016  10  11







Dollar equivalent

1 oz @ $1: 6.7140

$1: 6.7160





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.

China continues to hold higher gold price levels than New York or London.

With the gold price in sterling having risen +37.11% since January 6th we note that the last time the Pound Sterling faced this much exchange rate damage it imposed Exchange Control in the form of the Dollar Premium. Now it simply accepts the fall in sterling, which gives it a huge competitive edge in the exports markets. It is likely to also see a major drop in the Trade deficit. And this is only on the certainty, but not the reality of Brexit, which will not be triggered until next year and completed two years after that.

LBMA price setting:  The LBMA gold price setting was at $1,255.70 against yesterday’s $1,256.40. The gold price in the euro was set higher at €1,139.78 against yesterday’s €1,130.92.

Ahead of the opening of New York the gold price was trading at $1,250.50 and in the euro at €1,134.96.  At the same time, the silver price was trading again at $17.41.

Silver Today –The silver price rose to $17.62 at New York’s close yesterday from $17.32, Monday. 

Price Drivers

With the dollar Index showing strength at 97 we feel it is unlikely to reach 100, above which it peaked. We have made clear that a strong dollar is not in the interest of the U.S. Current talk is that any continuing strength on the back of a potential rate hike would be so unwelcome as to influence December’s FOMC meeting.

With China’s prices higher than London’s we would have expected arbitrage operation would have smoothed out such price differences, but that is just not happening, right now. It is feasible by using currencies to take positions in both centers in gold, holding those positions and reversing them should the opportunity arise. There is no short term need to move the gold itself, but should the long position grow . We would expect this to happen in the days ahead. Subscribe –

You will have noticed how the trading range of the gold price since the fall from over $1,300 has narrowed to the point where the gold price is barely moving. It is at these points that we expect a strong move in the gold price either way. It may hold this pattern for up to a week or so, but inevitably the move will come.

Repeat: This is what we think at Gold Forecaster and Stockbridge Management Alliance LtdWe see the price very close to the Technical targeted bottom. We do see current price areas we see as a major buying opportunity.

You are welcome to contact us at [email protected] should you wish to buy physical gold in forms that are dealable all over the world and we can hold them for you in a robust manner that, we feel, removes the threat of being confiscated. We’re the only storage company that offers that!

Gold ETFs – There were no purchases or sales into or from the SPDR gold ETF. Nor were there any changes in the holdings of the Gold Trust, leaving both their respective holdings at 958.902 tonnes and 227.23 tonnes.

Since January 4th this year, the holdings of these two gold ETFs have risen by 385.153 tonnes.

Silver – Silver prices should resume following the gold price. As we see gold price bounce, we do expect to see silver prices bounce more.


Julian D.W. Phillips | | StockBridge Management Alliance