Welcome to illuminati silver, we tell you
the truth about silver. Today is Sunday 23rd July 2017 and we are
providing our gold and silver weekly update for the week ending 21st July.
Gold rose $25 last week from $1,229 to $1,254 having hit a high of $1,255 and a low of $1,228.
In sterling terms gold finished the week at £965 that’s up £27, and in Euros it closed
at 1,075 Euros that’s up 4 Euros on the week.
Silver rose 52 cents from $15.99 to $16.51 having hit a high of $16.52 and a low of $15.98.
In sterling terms it closed at £12.70 that’s up 50 pence for the week and in Euros it closed
at 14.15 euros that’s up 0.21 euros. The Gold to Silver Ratio fell from 76.86:1
to 75.95:1 The Dow Jones closed on Friday at 21,580 down
31 points on the day and down 57 points on the week, and the NASDAQ closed at 6,387 down
2 points on the day and up 75 points on the week.
Brent Crude fell 85 cents from $48.91 to $48.06 and US Light Crude fell 77 cents from $46.54
to $45.77 The dollar index stands at 93.58 that’s
down 1.57 on the week. Last week gold and silver prices rose quite
strongly, fundamentally due to the pressure placed on the dollar, initially by the considerable
rise in the Australian dollar and the Head of the ECB stating that the stimulus may be
tapered in September, thereby enabling the Euro to rise significantly. In addition, US
Treasury yields continued to fall, thereby making gold a more attractive option. Added
to this we witnessed Trump’s failure to pass his Health care reforms and now some
are questioning whether his tax and infrastructure spending bills will also fail. All of this
adds to uncertainty in the value of the dollar and has given gold what we believe to be a
temporary boost. We do think that President Trump will get
a tax cut Bill passed soon and achieve an increase in infrastructure spending, – after
all these are 2 key planks of his election campaign. Nevertheless, while uncertainty
dominates, and not forgetting the increasing pressure concerning the Russia collusion investigation,
gold will remain underpinned and in our opinion stand at around $50 – $100 higher than it
should. This week, we have a number of key events
which are likely to control and influence the direction of the gold market: The U.S.
Federal Reserve’s interest rate decision and monetary policy statement on Wednesday,
U.S. Durable Goods on Thursday and Advance GDP on Friday.
The Federal Open Market Committee is widely expected to leave interest rates unchanged.
However, investors will be looking for clues in its monetary policy statement as to the
timing of the next interest rate hike. Core Durable Goods are expected to show a
0.4% increase, up slightly from the previous 0.3%. Advance GDP is expected to come in at
2.5%, up from the previous 1.4%. So until these are out of the way and especially
the FED’s decision and comments on Wednesday, we may indeed witness a little further strengthening
in gold in the early part of the week. Silver markets broke through the $16 resistance
level and up towards $16.50. That’s an additional area that should continue to offer resistance,
but we may initially see that level breached early in the week. We are confident that silver
is merely reacting to the gold price rise and the weakness of the dollar, and its fate
short term will lie in direct alignment with it.
Our overall assessment for gold and silver for the August period is lower prices, though
we may well see a little further ‘tick up’ depending on what is announced on Wednesday.
Of course the FED is not going to raise rates and will remain quite cautious. We believe
it will confirm that there will be another rate rise this year (we suspect November or
December) and this may allow the dollar to fall a little further short term, thereby
strengthening gold and silver prices this week. That said, we are not convinced that
the rally will hold for long and expect to see prices fall back again in August.
The caveat we have to add however, is that politically we are becoming ever more confident
that President Trump is going to fire or seek the resignation of his Attorney General as
a prelude to getting rid of Mueller, the Special Counsel. Whatever one may believe about Russian
collusion etc, the one thing we are most confident of, is that Trump does not want his business
dealings investigated, and an encroachment into this area will be a step too far. So
should this occur, then the political turmoil that will ensue, will undoubtedly be positive
for gold and silver prices. We shall just have to wait and see.
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Illuminati Silver owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.