Gold and Silver's Daily Review for 13th Sept 2010


New York and London saw the gold price sitting below $1,250 with Asia and London holding at that level over the weekend.   The morning Fix in London today was at $1,243.00.

Some commentators refer to the Basel III Agreement as being the factor that has gold on the back foot.   We think not.   The weakness follows a period of attacking $1,260 but not breaking through yet.   There is no reason why the gold price shouldn't hold at these levels until dramatic news comes forward to trigger U.S. buying.   Meanwhile, institutional demand is sufficient to keep it at current levels and take all offers that come to the market.   We see this demand as being controlled, yet persistent.

We are developing the theme of the last article [Subscribers can access our archives] on "The new threat to the U.S. Dollar – A Global Yuan" in the current issue of the Gold Forecaster, and writing "Will the Chinese Yuan rise – what of Chinese Gold Investors?" These will not be issued in full as short articles to gold sites in general.   To read these important pieces and to find out our preferences and for our full range of weekly forecasts please subscribe through: – or for our weekly newsletters.

Gold – Very Short-term

Gold has been quiet to slightly weak today, so we expect New York to try to weaken it further.

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Silver – Very Short-term

After a Fix at $19.90 the silver price eased to the present $19.86.   As with gold we expect a slightly weaker day for silver today.

Gold Price Drivers

Monday has been a quiet day a slight fall in the gold price to the lower $1,240 area.   The market is waiting for New York to guide the way.

New York generally opens by pushing the prices down before it picks up and rises higher as it has done in the last week or so.   The gold price is still in firm resistance, but close to breakout.   We call it a 'point of resolution', where demand and supply are getting closer to each other, with a lessening of the difference between the two.   This is when markets become risky and investors can be hurt or helped by a sudden and large move either way.   Short-term it can be either way.

The fundamentals of the gold price are very healthy and even better regarding silver.

But short-term prices are like the waves of the sea on the seashore, ebbing and flowing irrespective of the current.   The skill is to get the current and the wave action to match each other.

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Julian D.W. Phillips