Gold and Silver Daily Review for the 22nd December 2010

by Julian D.W. Phillips


Yesterday we forecast a statement from the IMF that they had completed their sales of gold, all 403.3 tonnes of it.   Today they made the announcement to this effect.   It amazes us that few have understood the significance of this [more below].

The U.S. took the gold price down close to $1,380, turned and Asia took the price back up to $1,388.  The p.m. gold Fix was $1,383.00 [€1,052.43]. Asia and London have a far more positive outlook on the gold price, as we see in the morning Fixes compared to the p.m. Fixes. That’s because demand is continuing to rise in Europe and the east.

The oil price is showing signs of rising towards $100, as the recovery in the West shows some signs of gaining traction. Add to that the burgeoning Indian and Chinese economies and we see demand for oil requiring, eventually, OPEC to increase supplies.  What will this do to gold?  We are featuring an article in the next issue of the Gold Forecaster and Silver Forecaster that discusses this. Apart from covering the gold and silver markets Gold Forecaster and Silver Forecaster are structured in a way that gives perspective to macro-economic factors from oil to currencies covering the pertinent global gold markets that directly affect the gold price and some that simply influence it. It is a “must-read” for all who want to understand why the gold price is moving as it is and why. It also aims to help you understand why currencies and today’s national economic problems are influencing the global economy and the precious metal prices [we cover platinum in the Silver Forecaster too].  Subscribe at or for silver at].

Gold – Very Short-term

Gold remains in consolidation mode with a stronger bias today. This should continue today in New York<!–

Silver – Very Short-term

Silver remains in consolidation mode with a stronger bias today.  This should continue today in New York.

Gold Price Drivers

Few realize the significance of the completion of gold sales by the IMF. How the gold market reacts from now on will dictate the direction of gold for many years now.  After this announcement we see little chance of a strong pullback in the gold price due to the festive season.

As you head off into the snow for your holidays, perhaps you will have time to pause for thought? A look forward to the factors we see today that will define tomorrow would be timely. Your conclusions might surprise you. That’s what we will be doing [and publishing them in the next few issues of the Gold Forecaster and Silver Forecaster. A look back at this year describes events that caught everybody unawares and has left the financial world off-balance and uncertain. Unfortunately the economic and financial driving forces behind the developed world economies leave most with low levels of confidence going forward.

We do believe that gold will be far more than interesting in 2011!