Archive for the ‘GATA’ Category

Wait a Minute(s): ‘Dovish’ Fed Seen in No Hurry to Raise Rates

Posted by on July 10th 2014 in CFTC, China, CME Group, Federal Reserve, GATA, General Economy, Gold, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

FedSaysWaitAminutes

Gold and silver gained before and after Wednesday’s release of the minutes from June’s FOMC meeting, which warned that “market participants were not factoring in sufficient uncertainty about the path of the economy and monetary policy.” The Fed also delivered what was described as a “dovish message” on interest rates, with FOMC members said to be “clearly in a position where at least right now, they’re inclined to let this thing run a little further, to take out some insurance. Given how long we have under performed, if you’re the Fed and you view things the way they do, what’s the harm in going a little further?”

But according to a contributor at The Street, who describes Wednesday’s stock market gains as a “dead cat bounce,” the Fed is also “between a rock and a hard place. It has said that it will end the bond purchasing by October. If it withdraws the easing by stopping the money printing, the Fed will puncture the asset bubbles. If it keeps printing, inflation will gather strength. As weak data over the rest of the year come in, the Fed will realize it has tapered into weakness. This will cause it to launch new money printing, or QE4, in 2015.  The big winner in terms of asset class will be the precious metals [and] energy.”

See also:

Short Side of Long/Got Gold Report:  Precious metals bulls are back!; COT turning point?

King One Eye/Yahoo Finance:  Gold is still in a big uptrend (chart); Technical analyst – Charts hinting at a big move for gold

GATATF Metals Report – Understanding the latest bank participation report; London Silver Fix – Meet the new boss…

CNBC:  Schiff makes case for gold, but Gartman not buying it; Marc Faber says stock market will crash, just don’t know catalyst

Zero Hedge:  Gold and China’s challenge to the “narrative of central bank omnipotence”

Metals Hold Gains; Weak Dollar, Geopolitical Strife Support Gold

Posted by on July 2nd 2014 in CFTC, Federal Reserve, GATA, General Economy, Gold, Iraq, Russia, Silver, Ukraine, Wall Street | Be the first to comment!

GoldVsDollar

Despite big gains in stocks, gold and silver “held their rally” on Tuesday, as futures again inched up with gold’s support seen coming from a declining dollar — “The dollar weakness is helping gold stay supported at the current levels” — and geopolitical tension — “Gold is being supported by Iraq and now Ukraine.” Concerning Monday’s rally, Dan Norcini cites the latest number from the GLD holdings showing “a nice influx of some 5.05 tons of gold since the last updated number,” which he describes as “a nice ‘positive’ strike three. I mean by that, you had the gold price moving higher yesterday, the mining shares moving higher and the GLD showing an increase of 5 tons. That is exactly what one wants to see if they are a gold bull. That, plus the fact that the U.S. dollar index fell below 80 on its chart.”

See also:

Hard Assets Investor:  Rick Mills – Rising demand and falling supply equals higher metals prices

Scott Pluschau/SilverSeek:  Silver is at a key reference area to trade from; Trading the ratios and swapping gold for silver

Market Oracle/BullionVault:  Gold prices benefit from economic sins; Gold price vs. pundits – can’t both be wrong

Telegraph/Bloomberg:  Fund manager – ‘Why I am backing cash and gold until stock markets fall’; How Memphis firm decoded bond secrets mystifying Wall Street

GATA:  Gold market manipulation injected uncomfortably into BNN interview; Bank of England gets pretty intimate with the London Bullion Market Association

Metals React Positively to ECB Going Negative

Posted by on June 6th 2014 in CFTC, China, ECB, Federal Reserve, GATA, General Economy, Gold, Monetary Policy, Quants, Short Sellers, Timothy Massad, U.S. Congress, Wall Street | 1 comment

LessThanZeroGold and silver futures gained 0.7% and 1.6% respectively on Thursday, after the the ECB cut interest rates from 0.25% to 0.15%, and dropped the rate on  overnight deposits to negative 0.1%, which was described as an “historic step” that “signals strange economic times.” But the moves were also seen as a “disappointment” for not going far enough, with the euro rebounding to hit a ten-day high. And according to a Bloomberg report, the ECB’s action “probably won’t quell calls for more radical measures such as quantitative easing to stop the euro area from sliding into deflation.”

And while gold’s gains were said to be “coming mainly from short covering and not from a huge throng of eager new buyers,” it was also suggested that gold and silver “took a hit the past couple of days after option expiration to dampen any rally possibilities over what should surely be a big positive for the precious metals.” Gold Newsletter‘ editor Brien Lunden agrees, telling MarketWatch that “since gold responds over time to increases in the supply of fiat currency…. Increasing amounts of euros, as well as dollars, yen and other currencies, will raise the relative value of ‘things’ — and especially gold.”

See also:

GoldSeek/Mineweb:  When money printing runs wild; Despite gold’s fall, fundamentals suggesting rebound – but when?

Dow Jones/Bloomberg:  Two more declare interest in overseeing London silver fix; Silver electronic auction favored as replacement for fix

AP/Law 360:  Senate confirms Timothy Massad to head CFTC

Wall Street on Parade/CNBC:  Was that really a public meeting on high frequency trading?; Here are the 24 stocks high-speed traders love

WSJ:  Bill Gross – I don’t own a cellphone

Indian ‘Taper’ Would Be a Gold-Friendly One

Posted by on May 20th 2014 in China, ECB, Federal Reserve, GATA, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

IndianTaper

Gold and silver futures settled up, but by less than $1 on Monday, with gold seen supported by a dollar dip and the prospect that India’s newly elected government will relax import restrictions. “There is a lot of optimism that India will slash the tariff rate. People expect India’s demand to rise in the second half of the year,” according to one broker quoted by Bloomberg.  While an Indian economist says that “It’s not the burning issue right now,” but it is “one of the items on their to-do list. The currency is strengthening and capital inflows being in a good position, it allows the government to taper it off in a pretty orderly manner. At least symbolically they should start doing it.”

See also:

SRSrocco Report:  U.S. exports 128 tonnes of gold in Jan/Feb 2014… supply deficit increases

Silver News Blog/In Gold We Trust:  Overlooked bullish news for silver; Chinese real estate debt settled in silver, Shanghai exchange silver premium at 5.7 %

The Gold Report/Zero Hedge:  Sprott’s Charles Oliver – Time is the trigger for equities and bullion;  Asset managers hold most cash in 2 years in “least believed bull market” ever

Reuters:  Death of silver fix heralds overhaul for precious metal benchmarks

Telegraph/GATA:  Europe agrees pact to avoid Gordon Brown’s gold sale error; Only mainstream financial journalism thinks central banks are out of the gold market

The Fix Is In—Court

Posted by on May 7th 2014 in CFTC, China, GATA, General Economy, Gold, Janet Yellen, Media, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

TheFixIsIn—Court

During a 40-minute hearing in Federal District Court in Manhattan on Monday, “lawyers for more than 20 plaintiffs … gathered to coordinate their linked lawsuits against the five banks that make up what is known as the London gold fix,” reports the New York Times. “The lawsuits — and there are still more being filed — center on two main aspects of the gold fix: the fact that it is unregulated and that member banks can trade gold, and gold derivatives, during the call,” which is held twice a day.  The afternoon fix call, at around 3 p.m. London time, has drawn the most scrutiny.

The Tocqueville Gold Fund’s John Hathaway holds out hope that the legal proceedings “will finally demystify the inner workings of the London gold market.  Ukraine is obviously the headline grabber right now and for good reason, but, to me, one of the key longer term catalysts for gold is to shed daylight on the connection between the physical market and the synthetic market for gold.” The five banks being sued are Barclays, SocGen, ScotiaBank, HSBC and Deutsche Bank, which last week announced that it was giving up its gold and silver fix seats without finding a buyer.

See also:

Gold Silver Worlds:  Gold price manipulation reaches mainstream media; GATA to NY Times – We’re “a little more serious than the ‘offbeat activists’ of your description.”

Coin News: Gold dips, silver rises, U.S. Mint bullion coins gain

Got Gold Report/Investing.com:  U.S. dollar index breakdown attempt?; Will Yellen save the dollar?

Zero Hedge:  And the first thing Ukraine will buy with IMF money is…

Guardian/Reuters:  Ukraine crisis worsens amid intense fighting and warnings of civil war

Metals Drop on Euro Weakness vs. USD

Posted by on April 4th 2014 in CFTC, China, Federal Reserve, GATA, General Economy, Gold, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!

GoldEuroDollar

In advance of Friday’s jobs report, spot gold and silver fell 0.8% and 0.5% respectively on Thursday, with the drop attributed to the dollar gaining against the euro, which fell 1% as ECB head Mario Draghi spoke at a press conference, in which he said “There was a discussion about QE, it wasn’t neglected.” But USA Gold’s market report points out that “While the dollar firmed intraday, gold did as well, giving a very preliminary indication that a launching of ECB asset purchases may ultimately supplant Fed tapering as the monetary policy story of the year…. the ECB is prepared to contort itself in whatever way deemed necessary to justify such purchases. It is also arguably a testament to the dire nature of Europe’s predicament.”

See also:

Daily Reckoning/Gold Silver WorldsExcess liquidity keeps the global economy afloat; If reflation is here, then gold is your ultimate hedge

Bullion Bulls Canada:  Is there any gold left for central banks to buy?

Coin Update/Coin News:  American Silver Eagle bullion sales jump in March, top 5.3 million

GATAReuters interviews Jim Rickards about gold’s ascent after ‘The Death of Money’; HFT controversy may lead to short squeeze in gold, Tocqueville’s John Hathaway tells KWN

Reuters/Of Two Minds:  U.S. futures regulator CFTC probing speed traders; It’s not just the stock market that’s rigged: the entire status quo is rigged

Fund Manager Hathaway Sees Implosion of Paper Gold

Posted by on December 5th 2013 in China, Federal Reserve, GATA, General Economy, Gold, India, Janet Yellen, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!

Stand&Deliver

In reporting on a keynote speech at London’s Mines & Money conference by John Hathaway, asset manager of the Tocqueville Gold FundMineweb‘s Lawrence Williams writes that “Hathaway’s interpretation of gold’s decline, paints an exceptionally bullish long term picture….The same physical demand that has caused an apparent unwinding of trades in the paper market will therefore drive a ‘new leg in a secular bull market for gold’, with an eventual ‘implosion of credit structures’ in the gold futures markets of London and New York.” Williams has more coverage of the conference, in a separate article headlined, “Bull market or bear market – where does gold stand now?

See also:

Jesse’s Café Américain: Comex deliverable gold still out on the tails of leverage at 57 to 1

Reuters:  Gold drops 1.1% on uncertainty over Fed tapering; Silver also off 1.1%

Coin News:  Gold gives back some gains; U.S. Mint gold bullion coins soar

Business Insider:  People are buying a lot of silver & gold with their Bitcoins

Liberty Blitzkrieg:  Gold smuggling increases 7x in India and surpasses illegal drug trade

GATA:  Grant Williams: Today’s gold suppression will break just as London Gold Pool did; Williams – Twisted (By the Pool)

Zero HedgeJim Rogers cautions “Be prepared, be worried, and be careful… This is going to end badly

IB Times UK:  Freedom Ship: $10 billion floating city for world’s super rich

Hair Today, Gone Tomorrow

Posted by on November 6th 2013 in Bart Chilton, CFTC, Gary Gensler, GATA, Gold, Goldman Sachs, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

ChiltonCallsItQuitsCFTC Commissioner Bart Chilton announced that he’s leaving the agency at the end of the year.  Or, GATA’s Chris Powell puts it, in an appreciation of Chilton’s efforts to address allegations of manipulation in the gold and silver markets, “Financial interests finally get rid of CFTC’s Chilton.”

“Chilton’s five-year term on the CFTC expired in April and he had said this year that he would like to be reappointed,” writes Powell.  “His announcement today contradicting himself suggests that he has been told that President Obama would not be renominating him, which should be no surprise, given the enormous trouble Chilton has caused for the powerful financial interests that control the U.S. government….His departure from the CFTC will be a great loss….Read more >>>

See also:

PoliticoMaverick CFTC member Bart Chilton to exit

Zero Hedge:  Bart Chilton jumps CFTC ship

Reuters:  New commissioners open CFTC to change

MarketWatch:  In announcing departure, CFTC’s Chilton references Etta James’ “At Last

‘Quanticipation’ – Metals Weigh Fed Prospects

Posted by on October 28th 2013 in CFTC, China, Federal Reserve, GATA, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

MetalsWeighFedProspects

Comex gold and silver futures ended down slightly on Monday, but “Quanticipation is back, and gold says the Fed won’t taper QE or change anything else on Wednesday,” according to BullionVault‘s Adrian Ash.  And while he cautions that gold might “dip after the announcement itself … Electronic money printing now looks a permanent fixture.  It’s hard to see the markets being better prepared [for a taper] than they were by September. Yet still the Fed lost its nerve, even after setting the stage for more than six months.”

And noting that in the past two weeks “gold has gained about 6 percent as weak U.S. data and budget battles in Washington looked set to deter the Fed from scaling back asset purchases,” Reuters quotes one asset manager who observes that “What we’re seeing now is a subtle shift in underlying technical and psychological sentiment for this market.”

News & Views

AP/Bloomberg:  Factory output rises just 0.1% in September; Factory output slowdown shows U.S. has little traction

Reuters/GATA:  Fed to hold its fire this week, wants clearer economic view; Sunday New York Times front-pages an appeal for lots more inflation

CNN Money/Bloomberg:  QE3 on track to be Fed’s largest stimulus program yet; Yellen poised to rival Obama with financial power;

BullionVault/The Hindu/Got Gold Report:  Urge to “dump gold” finished as U.S. Fed “turns dovish”, Diwali begins; Playing catch up, CFTC releases COT report for October 1

Zero Hedge:  Mark Faber fears “stocks could be dead money for a while” but “gold has bottomed

Seeking Alpha/GoldSeek:  12 reasons why gold will rebound in 2014; Aden Forecast – As good as it gets… For a buy

Gold Silver Worlds/USA Gold:  How gold ETF demand could lift the gold price dramatically higher

GATA/USA GoldFinancial Times‘ John Dizard notes potential strain on paper gold; Screen-traded fiat gold could get very violent wake-up call

Koos Jansen:  Central banks bullish on gold at LBMA conference

Bloomberg/Mineweb:  Russia reduces gold holdings for first time in a year; UBS – Indian gold demand soldiers on despite govt intervention

Got Gold Report/KWN; CPM Group alleges whistleblower Andrew Maguire has no metals history; Maguire & Eric Sprott refute allegations & discuss war in gold

James Kunstler/Of Two MindsTwo forces and three bears; The gathering storm

Gallup/CNN Money:  In U.S., fewer believe “Plenty of opportunity” to get ahead; Growing precentage of middle-class Americans plan to work until they die

CBS News/LA Times:  HealthCare.gov’s problems – technical and political – run deep;  More legal trouble for Affordable Care Act

PhysicalGold&Silver

Silver Seen ‘Working Through Aggressive Consolidation’

Posted by on October 24th 2013 in CFTC, China, Federal Reserve, GATA, General Economy, Gold, Goldman Sachs, India, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, U.S. Congress, Wall Street | Be the first to comment!

SilverConsolidation

SilverSeek CEO Peter Spina asks: “So what will re-ignite the silver bull? Will we see $50 again?” He argues that silver’s still in “a long-term secular bull market working through an aggressive consolidation…. Just like with the gold market, the current prices are working through these negative market factors which could continue for many months. The reversal will come once fear has exhausted itself and fundamentals re-exert themselves.” Spina concludes that “silver investors who can take advantage of the price decline in silver will be rewarded in the years ahead as we retest former record highs.”

And in an “Ask the Expert” interview with Sprott Money News, James Turk fingers the U.S. Treasury’s Exchange Stabilization Fund as the “higher authority” that the CFTC bowed to in dropping its five-year investigation into silver market manipulation, which Ted Butler predicts could end sooner than later.

News & Views

MarketWatch/Reuters:  Gold settles above $1,350 at five-week high; Gold up 1% after U.S. jobless claims; silver adds 0.8%

InvestorPlace/Dan Norcini:  Weak U.S. dollar, stronger China send gold higher; So much for China concerns

Jesse’s Café Américain:  U.S. dollar valued in gold since 1718; Gold and silver charts – Straining at the leash

Zero Hedge:  Gold hits 1-month high in aftermath of Goldman’s (and Gartman’s) “slam dunk sell” advice; SocGen warns there is “possibility” Fed may increase QE next week

Wharton/Bloomberg:  Janet Yellen – What’s ahead for the Fed?; Central banks drop tightening talk as easy money goes on

CFTC/The Hill:  Delayed COT reports to resume Friday; Report – Sequester leaves CFTC workers facing two-week furloughs

Sprott Group/Koos Jansen:  A piece of the gold puzzle falls into place; Switzerland has never exported this much gold

Barron’s/Mineweb:  World Gold Council responds to Eric Sprott’s open letter

BullionVault/Arabian Business:  India’s gold coin import ban “will stay,” smuggling surges; $1.9m of gold found in flyDubai plane toilet

MarketWatch/STA Wealth Management:  Is the U.S. stock market overvalued or not?; Are we entering the 3rd stage of the bull market?

PBS Newshour/WSJ:   More than 25 million Americans still can’t get a full-time job; Don’t blame health law for high part-time employment

AP/FINalternatives:  Fed proposes big banks hold more cash, assets; Prosecutors move towards Madoff charges against JPMorgan

Silver Investing News:  CPM Group, GATA to go head-to-head on manipulation at Silver Summit

PhysicalGold&Silver

Ted Butler: CFTC Avoided ‘Key Issue’ in Silver Probe Statement

Posted by on September 26th 2013 in Bart Chilton, CFTC, China, Federal Reserve, Gary Gensler, GATA, General Economy, Gold, India, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Ted Butler, U.S. Congress, Wall Street | Be the first to comment!

As the CFTC closing its investigation into silver market manipulation without filing charges is “met with howls of protest by gold and silver bugs,” Ted Butler joins the fray:  “Undoubtedly, to those (like me) that are convinced that silver has been and is manipulated in price, the announcement doesn’t seem to offer any substantive evidence that silver wasn’t manipulated; just an affirmation that the investigation was thorough.”

“The announcement touched on many issues, but not the key issue,” writes Butler, “namely; how a 30% net market share by JPMorgan wouldn’t be manipulative to the price. Such a large percentage of market share had always been prosecuted by the CFTC in the past for being a market corner and manipulation. Rather than answer that simple question, the Commission initiated an expensive taxpayer-funded investigation designed to avoid answering the real question.”

And in an interview with King World News, GATA’s Chris Powell suggests that the CFTC’s hands were tied:  “the CFTC’s conclusion today that it cannot act regarding silver market rigging in no way discredits complaints of silver market manipulation.  This, in all likelihood, means that the CFTC already knew or has recently discovered that the market rigging is being conducted by the U.S. government.  As such it is exempt from ordinary securities law.”

News & Views

Coin News/Reuters:  Gold and silver end lower, fourth time in five sessions; Gold falls on dollar rise, mixed U.S. economic data

Dan Norcini:  Another piece of economic data – Another reaction in gold

Zero Hedge/Jesse’s Café Américain:  Deja deja deja vu gold smackdown; “Gold and silver look like safe havens here, but in the short term anything can happen…”

USA Gold/CNBC/Reuters:  Gold range bound as fiscal crisis looms; Wall Street worries about consumer as Congress squabbles

Tim Iacono:  Is the Fed now dysfunctional too?

MarketWatch/WSJ:  Fed’s Kocherlakota wants to boost, not taper, QE3; Fed should work more aggressively to battle unemployment

Zero Hedge/Liberty Blitzkrieg:  “Whatever it takes” comes to the U.S.; Peter Schiff was right part deux: The “taper” edition

Hard Assets Investor:  Jim Rickards says Fed will never end QE, gold to hit $5,000

Koos Jansen/Sean Brodrick/Marc Faber:  Gold held in China; 11 charts on China — See if you can spot the trend; China’s economic growth more like 4%

Business Standard/Economic Times:  As Indian investors seek silver lining, metal’s import up 311%; Why Indians love it when government makes gold expensive

BullionVault/ForbesDollar and gold price info from Venezuela; Changing balance of power may unlock Venezuela’s markets

AP:  One man’s hunt for a pirate booty gold mine

Metals Drop Despite No New News from Bernanke

Posted by on July 17th 2013 in CFTC, China, Federal Reserve, GATA, General Economy, Gold, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

Although Fed Chairman Bernanke’s House testimony on Wednesday was seen as having “A dovish tilt towards easier money,” with statements such as, “If we were to tighten policy, the economy would tank,” the above charts show that stocks and metals headed south after Bernanke began his Q&A with lawmakers.

“The markets saw Bernanke as more hawkish in the Q&A session of his testimony,” according to a portfolio manager quoted by MarketWatch, but a Reuters article attributes the selloff to Bernanke simply reiterating that the Fed would likely begin tapering later this year, sending gold & silver futures down 1% & 2.6% for the day.

MarketWatch also quoted the Real Asset Co.’s Jan Skoyles as saying that while markets may be preparing for tapering, “given the fact that QE is still on-going and the euro-zone crisis is still making a lot of noise, I fail to see how anyone can think that Bernanke knows how to fix this and how to predict the future.”

News & Views

Jesse’s Café Américain:  Gold & silver obviously hit with a bear raid in honor of Bernanke’s testimony; COMEX registered gold falls to new record low

Got Gold Report:  John Paulson in rare TV interview – Rationale for gold still valid

Xinhua/MarketWatch:  Where is the end of the slump of gold price?; Why heavy gold shorting could lead to a rally

Seeking Alpha:  Markers in place for precious metals sector resurgence

Mineweb:  Odds favour sharp gold price recovery ahead – but when?; The bizarre price action in gold – counter to logical assumptions

SilverSeek:  Zombie bank analysts rise from the dead to keep fiat money alive

GATA:  Hong Kong fund manager identifies refinery recasting central bank gold/Interview transcript

Bullion Street:  Chinese exchange delivers 1098 tons of physical gold in H1-2013; India can’t completely ban gold imports

Money Morning:  With gold, don’t miss the top

MarketWatch/Alt-MarketSell signal from key stock market indicator; Get ready for the next great stock market exodus

BullionVault/GATA:  Gold mining “set to shrink”, hedging eyed; Gold mining industry would rather go back to hedging than fight

Business Week/Fox Business:   FERC flexes regulatory muscle in talks with JPMorgan, reportedly on the verge of a record $1 billion settlement

CBS News:  ACLU warns of mass tracking through license plate scanners/Report