Saturday, 15 December 2012

Gold & Silver Market Morning



By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - GoldForecaster.com



-- Posted Friday, 14 December 2012 | Share this article | Source: GoldSeek.com

http://news.goldseek.com/2011/marketmorning.jpg
Gold Today –New York closed at $1,697.10 down $14. While Asian dealers were quiet overnight and gold prices held up, in London there was a battle to push them down. Gold Fixed at $1,696.50 $1.75 higher than yesterday. In the euro it was Fixed at €1,297.316 down nearly €2 while the euro was slightly stronger at €1: $1.3077. Ahead of New York’s opening, gold was $1,696.60.00 and in the euro at €1,295.70.

Silver Today – Silver closed higher at $32.55 down nearly a dollar in New York yesterday. In Asia and London, silver was pushed down to $32.51. Ahead of New York’s opening silver stood at $32.52.

Gold (very short-term)

Gold is expected to continue to consolidate with a mixed bias, in New York today.

Silver (very short-term)

Silver is expected to continue to consolidate with a mixed bias, in New York today.

Price Drivers
Gold & Silver – Despite the fall in the gold price the economic performance of China is on the rise again. But this time it is in a way that encourages gold and silver investors.

While exports are on the rise it is internal demand that is causing the growth. Such growth spreads throughout the Chinese population and deepens and widens economic growth there extending the middle classes in the same way. The middle classes are the prime gold and silver buyers. With direct government encouragement to its people to buy gold and its support of the expansion of the gold distribution system westwards demand for gold will increase in line with this growth. [Subscribe to our newsletters at www.GoldForecaster.com and www.SilverForecaster.com]. It has taken well over the last decade for the Chinese economy to move away from almost total reliance on exports to jump-start internal demand. It is internal demand that will lead to the Chinese economy becoming self-sustaining. It is this internal growth that will have the greatest impact on the Chinese economy and the rise of wealth there. With China overtaking India as the largest center of gold demand this is positive for gold long-term!

Silver – Silver investment demand from Chinese investors has jumped in recent years, making China the world’s largest market for both physical investment and paper trading of silver future and other similar contracts. This crown was taken from the U.S., many of whose ‘crowns’ are likely to be taken in the same way. In 2011, China’s demand for silver bars and coins soared to 17 million ounces, accounting for 8% of worldwide net purchases of physical silver. This confirms that the demand for silver there is likely to follow the growth of demand for silver in the same way. But with silver we must combine the growth in industrial demand to that of investment demand.

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters

Global Gold Price (1 ounce)

Today
3 days ago
Franc
Sf1,566.39
Sf1,568.31
US
$1,693.00
$1,693.00
EU
1,295.70
€1,296.47
India
Rs.92,490.15
Rs.92,210.09


-- Posted Friday, 14 December 2012 | Digg This Article | Source: GoldSeek.com

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