Lawrence Williams

About the Author Lawrence Williams

Former CEO of Mining Journal Ltd. and subsequently General Manager of Mineweb.com - a position relinquished in October 2012 to continue as a freelance writer. Graduate mining engineer from London's Royal School of Mines (part of London University) - has worked on gold, platinum and uranium mines in South Africa, copper in Zambia, uranium in Canada and holds a South African Mine Manager's Certificate. Joined Mining Journal originally as Financial Editor and worked for the company for over 30 years spending 13 years as CEO. Particular follower of the gold and platinum market and has written numerous articles on precious metals for Mining Journal and Mineweb and has also written for London's Financial Times as well as for other media and publications including SeekingAlpha. Has been regular writer for mineweb.com - and now has own blog - www.lawrieongold.com as well.

Gold Keeps Pushing Higher, Slowly But Surely

Gold closed in New York at $1,268.00 up from $1,260.80 in New York on Monday. In Asia on Tuesday, it moved higher to $1,274 and then in London until the LBMA price setting was set at $1,274.10 up from $1,267.60 yesterday. The dollar index is slightly lower at 97.17 down from 97.61 on Monday.

The dollar is down against the euro at $1.1009 from $1.0963 Monday. The gold price in the euro was set at €1,157.33 down from €1,156.25.

Ahead of New York’s opening, the gold price was trading at $1,277.70 and in the euro at €1,159.86.

Silver Today – The silver price closed in New York at $15.65 up 16 cents.  Ahead of New York’s opening the silver price stood at $15.67.

Price Drivers

China saw 25% lower exports last month, but that month included the week long Chinese Lunar New Year, so a lower figure was expected. Likewise imports dropped 13%+. Because of that the falls should not be taken as a ‘hard landing’ for China. But it is clear that global growth is declining steadily. Monetary policy certainly won’t reverse this. Therefore the environment for gold remains positive and will do until governments across the world take effective action to promote growth.

Gold ETFs The holdings of both the SPDR gold ETF and the Gold Trust remained the same yesterday. This is the second day running that the holdings were barely changed and yet the gold price keeps pushing higher, slowly, but surely. This certainly does not have the appearance of a ‘spike’ but a steady solid set of rises.

COMEX  is seeing short covering and increases in long positions. A look at today and yesterday’s gold price shows that COMEX is no longer leading the way, but following prices as they rise now. Dealers too are getting more confidence in the gold price holding these levels.

We do see gold and silver markets remaining very volatile in New York in the coming days as liquidity levels remain under visible pressure. However, after yesterday, we expect the volatility to come in taking gold higher. Bear in mind, please, that physical gold buying in these markets does not create ‘spikes’. We expect COMEX to cause volatility as liquidity pressures continue, while London calms the market.

Silver – The silver price looks like it will hold its gains and move higher with gold.