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2014 will not be a quiet year for gold/silver

We see it being exciting and with fundamental influences coming to bear to change the shape of these markets entirely, says Julian Phillips.

Gold Today –Yesterday the gold price in New York rose back to close at $1,228.40 after which Asia lifted it to $1,234. The dollar hardly moved at $1.36.12: €1 ahead of London’s opening. In London the gold price was Fixed at $1,232.25 up $6.25 on yesterday. In the euro it, Fixed at €906.533 up nearly €6.00. Ahead of the opening in New York gold stood at $1,233.40 and in the euro at €907.55. The dollar stood at $1.35905:  €1

Silver Today –The silver price was unchanged in New York at $19.59 but rose in Asian trade to $19.67 ahead of London’s opening. Ahead of New York’s opening, it was trading at $19.76.

Gold (very short-term)

Once again, we expect the gold price to consolidate today, in New York.

Silver (very short-term)

Once again, we expect the silver price to consolidate today, in New York. 

Price Drivers

Yesterday saw no sales from the SPDR gold ETF or the Gold Trust gold ETF, whose holdings stand at 793.121 tonnes at 161.83 tonnes respectively. We expect to see a narrowing of the trading range in both the gold and silver prices today, after which we expect a stronger move either way.  Today, Friday, is a favorite day for sales from the SPDR gold ETF, so we wait to see what will come. If no sales do come, we would expect to see prices rise.

The Technical picture is showing both strong support below $1,220 and heavy overhead resistance up to $1,260. What is remarkable is that the current pattern has not formed the usual pennant formation which leads to a clear resolution of demand and supply. The pattern we now see shows no narrowing of trading ranges as it moves between $1,220 and $1,250. Investors need to ask themselves where do the fundamentals that lead directly to either buying or selling of physical gold point to. Citing news that does not cause either is irrelevant. It boils down to news that really does cause a buyer to buy, or a seller to sell. If there is none of that news around, then gold and silver prices will simply move sideways. But when that news does arrive we could see a clear direction given to gold and to silver prices for the longer term.

We do not believe that 2014 will be a quiet year for gold and silver. We see it being exciting and with fundamental influences coming to bear to change the shape of these markets entirely. 

Silver – The silver price has changed its price pattern back to little movements on a daily basis followed by strong moves in quick bursts. Again we need to see that silver investors are very like gold investors, focussed on the monetary aspect of silver, not its role as an industrial metal. These investors control the silver price and are U.S. based.

Julian Phillips is the founder of www.GoldForecaster.com and www.SilverForecaster.com

 

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JSE ALSI52,544-0.50%2015-05-29 10:10 +0000
DAX11,521-1.34%2015-05-29 10:10 +0000
CAC 405,072-1.28%2015-05-29 10:09 +0000
Dow Jones close18,1632015-05-29 10:11 +0000
S&P 500 close2,1232015-05-29 10:11 +0000
Gold1,190.330.03%2015-05-29 10:09 +0000
Silver16.750.48%2015-05-29 10:10 +0000
Platinum1,118.190.15%2015-05-29 10:09 +0000
Palladium783.970.93%2015-05-29 10:09 +0000
Gold ZAR/oz14,439.090.24%2015-05-29 10:10 +0000
Brent Crude63.310.81%2015-05-29 10:10 +0000
USD / Euro0.910-0.30%2015-05-29 10:10 +0000
CAD / USD0.804-0.02%2015-05-29 10:10 +0000
ZAR / USD0.0820.04%2015-05-29 10:10 +0000
UAD / USD0.7660.13%2015-05-29 10:10 +0000

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