Welcome to illuminati silver, we tell you
the truth about silver. Today is Saturday 8th September 2018 and we
are providing our gold and silver weekly update for the week ending 7th September.
Gold fell $5 last week from $1,201 to $1,196 having hit a high of $1,206 and a low of $1,190.
In sterling terms gold finished the week down £1 to £925 and in Euros it closed at 1,035
Euros unchanged on the week. Silver fell 39 cents from $14.53 to $14.14
having hit a high of $14.54 and a low of $14.04. In sterling terms, it closed at £10.94 that’s
down 27 pence and in Euros it closed at 12.24 euros that’s down 0.28 euros.
The Gold to Silver Ratio rose yet another week from 82.65:1 to 84.58:1
The Dow Jones closed on Friday at 25,916 down 79 points on the day and down 48 points on
the week; and the NASDAQ closed at 7,902 down 20 points on the day and down 207 points on
the week. Brent Crude fell 81 cents from $77.64 to $76.83
and US Light Crude fell $2.05 from $69.80 to $67.75
The dollar index stands at 95.36 that’s up 0.22 on the week.
Whereas the week before last, gold vacillated within a $17 range, this past week it vacillated
within a $16 range but at a slightly lower level. Prices were up at the start of the
week but fell quite decidedly on Friday after better than expected jobs figures were announced.
It certainly looked as if that gold was going to hold above the $1200 level, but the non-farm
payroll report put paid to that. So let’s briefly cover what it revealed:
Nonfarm payrolls increased by 201,000, while the unemployment rate was unchanged at 3.9%.
Economists had forecast that 190,000 jobs would be added and that the unemployment rate
would fall to 3.8%. Wage growth, was more impressive than forecast.
Average hourly earnings increased by 0.4% month-on-month. And at 2.9% year-on-year growth,
wages increased at their fastest pace since June 2009.
August was the 95th consecutive month in which American employers hired more people than
were fired, and there’s never been a longer streak.
Traders are now conflicted as to gold’s direction. There is clearly some support at
or around $1200 but all are aware that the strong dollar supported by emerging market
turmoil, and the prospect of higher interest rates will dictate its price in the short
term. What most agree on however is that should
gold fall below $1150 then $1,000 is clearly in sight. Most however anticipate a small
bounce back this coming week though we suspect prices will again be range bound and potentially
slightly weaker. Silver prices just seemed to fall from Tuesday
and apart from a slight blip on Thursday continued its descent. Again, $14 offers considerable
support and should silver fall below it then frankly there is very little resistance until
we reach $13. Again, though as with gold, silver ‘s price is heavily influenced by
the strength of the US dollar. We are however very aware as we said earlier in the week
that the Gold to Silver ratio is again reaching that sort of level which normally leads to
a small correction between the two in terms of price, and although this is not guaranteed,
silver relative to gold is beginning to look very cheap.
So what news is likely to affect gold and silver prices this coming week?
Well: • Monday – Survey of consumer expectations
for August and consumer credit figures for July
• Tuesday – Wholesale Inventories for July • Wednesday Producer Price Index for August
• Thursday – Consumer price index and Core CPI for August
• Friday – Retail sales and Industrial Production for August
So, another quite reasonable week for data which can have an influence on US dollar value. We have to admit, that precious metals have
taken a small pounding these past 5 weeks and a small correction is due. However, we
can see little immediately ahead of us that will weaken the US Dollar, especially with
the Emerging Market Turmoil causing investors to invest in the US dollar and evacuate their
own currencies. What particularly gives us the view that the
dollar has further to rise is the jobs report showing wages strengthening. This is likely
to bolster the Federal Reserve’s decision to raise interest rates, as it is widely expected
to do when it holds a policy meeting September 25-26. In particular, the Fed may view the
increase in wages as a sign that inflation is picking up. So whether it does raise rates or not, the
expectations will be, that it will, and therefore we are still likely to see a stronger dollar
and therefore weaker gold and silver prices towards the end of this month regardless of
any slight recoveries we may see over the next few days.
We are, indeed also acutely aware that normally September sees higher gold and silver prices
because of the Indian Love Trade and this is why we are not necessarily forecasting
a major fall In the gold price as Indian demand for gold and especially silver has been strong
this year but we still believe that on balance, the dollar value rules.
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Disclaimer: 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