Gold and silver looking for a bottom and creating buying opportunity

Gold TodayNew York closed at $1,268.70 yesterday after the previous close of $1,313.30.  London opened at $1,309.80.

    • The $: € was weaker at $1.1223: €1 from $1.1171: €1 yesterday.
    • The Dollar index was weaker at 96.06 from 96.15 yesterday.
    • The Yen was weaker at 103.11: $1 up from 102.34: $1 yesterday against the dollar.
    • The Yuan was weaker at 6.6820: $1 from 6.6745: $1 yesterday.


  • The Pound Sterling was weaker at $1.2732: £1 from yesterday’s $1.2775: £1.


Yuan Gold Fix:  Shanghai Gold Exchange is closed for week-long Golden Week holiday

Shanghai remains on holiday. New York prices continue to dominate and will until China returns.

No doubt both Chinese and Indian gold investors have tuned into the fall in the gold price, which is back to levels when they were buyers. All they need is to see the gold price stabilize then we will see them return to the market in force.

LBMA price setting:  The LBMA gold price setting was at $1,274.00 against yesterday’s $1,309.15.

The gold price in the euro was set at €1,135.27 against yesterday’s €1,173.39.

Ahead of the opening of New York the gold price was trading at $1,273.65 and in the euro at €1,134.96.  At the same time, the silver price was trading again at $17.86.

Silver Today –The silver price fell to $17.85 at New York’s close yesterday from $18.82, Friday.  

Price Drivers

We hear on one side that the reason for the fall in the gold price came from hawkish comments by a non-voting member of the FOMC, but that seems unlikely to us. We also heard that ‘rumors’ of a gradual termination of the E.C.B.’s quantitative easing program, but that needs more solid evidence for that to be believable.

We looked around markets to see that Shanghai is closed, London left it starting to fall through $1,300 but it was New York that hammered it down. We looked at the gold ETFs and saw no sales but a small purchase into the Gold Trust.  

What we did see was no real buying, which opened the door to COMEX speculators to test support heavily [non-physical] who hit it hard to trigger stop losses all the way down to $1,268. But again no physical selling!

This has left dealers between a rock and a hard place. If physical buying comes into the gold ETFs the dealers will have to lift prices very fast. If more COMEX sales some in all the market will check the Technical picture.

What do we think at Gold Forecaster and Stockbridge Management Alliance Ltd? We 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 can do that!

Gold ETFs – There were no sales or purchases from or to the SPDR gold ETF (GLD) but there was a purchase of o.55 of a tonne into the Gold Trust (IAU) yesterday, leaving their respective holdings at 947.952 tonnes and 227.23 tonnes.  This is quite remarkable considering the fall in the gold price of $44.60 on the day. We believe this means the gold price is going to be extremely volatile for a while.

Silver – Silver prices will fall in the short term and will go the same direction as gold but should turn faster than gold when it does.

Julian D.W. Phillips | | StockBridge Management Alliance

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