Gold ETF Inflows Helping Gold

For the time being, continued gold ETF inflows are helping to keep gold’s head above water. Going forward, with gold at these levels, I don’t expect to see new inflows continuing
into the ETF marketplace.

April $1,106 level is our first level of support, and in my opinion, for the market to hold its bullish sentiment we would have to hold that figure. With the lack of professional gold traders participating in the market, I expect it will create some downside pressure in the price short term. As I indicated in my previous comment, some gold traders have jumped ship and gotten involved in the crude oil market.

Second day in a row the LBMA silver fixing price was set below where the spot market was
trading. Today not as dramatic as the $ .80 cents difference yesterday, but still a concern for most participants. The spot silver price at the time of the fix was around the $ 14.20 area as the fix was settling at $14.08. I wonder if this pattern continues, if a fix ( no pun intended ) to this problem is available.

It looks to me that the electronic fixing platform for silver is becoming a market of its own with very little liquidity. This can become a serious problem for the world producers, government mints and refiners who have annual contracts selling and hedging their production on the silver fixing price.

Have a wonderful weekend.

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