Archive for the ‘GATA’ Category

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!


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!


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!


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:’s problems – technical and political – run deep;  More legal trouble for Affordable Care Act


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!


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


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

Citi: Major Upswing Off Bottom for Silver and Gold

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

According to a new report from Citigroup, “Gold and silver appear to be in the process of finding a bottom; however, the price action could continue to be choppy in the coming weeks. Ultimately we expect both precious metals to move much higher in the long term with the potential for silver to be the outperformer, as was the case from 2008 to 2011.”

It goes on to predict that gold “will form the base for a new leg higher,” which can take it “to our target of $3,400 – $3,500 by 2016,” and “as with gold, our bias is that silver is in the process of bottoming before a more aggressive move higher, such as that seen after the correction in 2008. That suggests a move in silver to over $100 by 2016.”

Earlier this week, Citi analyst Tom Fitzpatrick previewed the report in an interview with King World News.

News & Views

Reuters:  Gold posts worst quarter on record despite rally Friday; gains 2.2% on day as silver pops 5.9%

Dan Norcini/Got Gold Report:  Heavy call option activity in GLD; Chart of the week – GLD holdings

Jesse’s Café Américain/GATA:  More than 600 tonnes of gold removed from major ETFs & Comex since January 1; Jim Sinclair – Comex will run out of gold soon and go to cash settlement

KWN:  Andrew Maguire – Massive 580 tons of gold purchased in just 7 days; Keith Barron – Available gold supply disappearing as gold price plunges

Reuters:  China’s 2013 gold consumption to top 1,000 tonnes, says state-owned gold producer; Gold rush 2013-style has Dubai scrambling; Gold-squeeze in India stokes silver demand

Bloomberg/MarketWatch/P. Radomski:  Gold traders split as rout resumes in bear market; Is the bad news over?; Where is the bottom?

Mike Shedlock:  Calmer waters for the bond market? Gold? Worst over?

Bloomberg/Reuters/WSJ:  Fed officials intensify effort to curb surge in interest rates; Fed’s Williams – ‘still too early‘ to reduce QE3; Fed’s Stein adds to chorus saying markets misread Bernanke

Sprott Asset Management/Zero Hedge:  Have we lost control yet?; Henry Smyth – Is this the Rothschild moment for gold?

GATA:   Market-rigging central banks laugh at technical analysis and ‘fundamentals’

Barron’s/Steve St. Angelo:  How much trouble for gold miners?; Can the primary miners survive $18 silver?

Reuters:  New rules pressure gold miners to come clean on costs; Peru peasant squads rally against U.S. firm’s $5 billion gold mine

Mineweb:  It’s no fun being a gold miner CEO these days

On Any Given Data

Posted by on June 26th 2013 in CFTC, China, Federal Reserve, GATA, General Economy, Gold, India, JPMorgan, Media, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

With examples of what it describes as “Bizarro headline ‘explanation’,” Zero Hedge illustrates how news outlets misinterpret and/or distort economic data to the benefit of stocks and the detriment of gold.  On Wednesday, the U.S. Commerce Department cut its estimate for Q1 GDP growth from 2.4% to 1.8%.  After which, according to one MarketWatch article, “U.S. stocks jumped … as a revision in economic growth calmed concern about U.S. monetary policy,” but MarketWatch also reported that “Gold futures dropped sharply … on growing expectations the U.S. Federal Reserve will slow the pace of economic stimulus later this year.”

And at Bloomberg, “U.S. stocks rose … as China’s cash crunch eased and slower-than-forecast economic growth fueled speculation the Federal Reserve will maintain stimulus,” but in another article, “Gold plunged to a 34-month low” on Wednesday “as improving U.S. economic data strengthened the case for the Federal Reserve to reduce stimulus.”

News & Views

GoldSeek:  Gold and silver fall over 4% and 5%; Gold continues to bleed from the Comex

BullionVault/Jesse’s Café Américain:  Gold price crash June 2013: Panic vs. history; Gold has had a 34% correction; Big corrections like this are not unusual in bull markets

James Turk:  Mid-year review of gold & silver

Reuters/KWN:  SPDR gold fund’s holdings shrivel as metal’s price slides; Physical gold market in disconnect as premiums hit record

Zero Hedge/Peter Grandich:  Gold drops below its average cash cost; Gold ($1,225) bottom in sight

Mineweb:  John Embry – The optimist’s dance and why gold will have to go higher

Yahoo! Finance/ABC (Australia) : Jim Rickards:  Bull case for gold has not changed; Slashing rates a big mistake Why the tumble in gold prices actually predicts a bullish market; Making a stealth leveraged bet on gold

Bloomberg:  Richmond Fed’s Jeffrey Lacker says Fed far from balance sheet cuts

Zero Hedge:  Lacker – Another faux-hawk takes the dovish tone; What does China’s Dr. Doom foresee?

Reuters/IndiaWires:  India’s gold premiums jump as physical demand outstrips supply; Ban on sale of gold coin creates panic

GATA:  Patrick Heller – Gold rig reaches the desperation stage; Fund manager on CNBC:  Gold market rigging ‘wouldn’t surprise me a bit’

Bloomberg:  Gold bear market hits hardest in South African mines; Newcrest is so cheap even gold bears see deal

MarketWatch:  Gold bug Howard Ruff hangs up his spikes

Metals Snap Back; ‘No News’ Is Good News

Posted by on May 20th 2013 in CFTC, China, Federal Reserve, GATA, General Economy, Gold, India, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!

“Gold and silver prices gained nearly three percent on Monday,” reports Reuters, but that followed “a roller-coaster session that opened with a gut-wrenching dive in silver prices to their lowest in 2-1/2 years before an abrupt midday turnaround.”

Describing the silver slide as a “flash crash,” Zero Hedge also points out that “Gold has retested $1400 and Silver $23 on no news… so it seems the demand for ‘cheaper’ precious metals was enough to warrant a 4.6% rally off overnight lows in gold and 12.5% in silver amid heavy volume in futures markets.”

News & Views

CNBC/MarketWatch:  Silver higher after wild ride; Gold rises, snapping 7-session losing streak

KWN/Jesse’s Café Américain:  Dan Norcini on Monday’s gold and silver market gyrations; Gold & silver futures hourly charts – Sharks with laser beams

Gold Bug Cantina/Mike Shedlock:  Should you buy gold?: Wild swings in gold and silver – Time to give up hope?

The Golden Truth:  Ultimate contrarian indicator – Gold is most hated asset class; A simple interpretation on gold for times of monetary madness

Paul Craig Roberts/Aden Forecast/Yahoo! Finance: No bear market in gold;  A wounded bull; Jim Rogers – The commodities bull market is still on

MinewebRobin Hood in reverse – gold being taken down to make the rich richer

Hard Assets Investor:  Contango report – The volatility of silver; Market doesn’t believe huge volatility in gold & silver markets will last

Alasdair Macleod:  Bank balances and gold

Arirang/Bloomberg: South Korea sees high gold demand amid suppy shortages;  Singapore’s Changi Airport seeks growth with gold, tuna

Bullion Street:  China’s ‘Shanglin gang’ sweeps gold in Ghana; Nepal central bank told to explain gold shortage

GATA: Barron’s gets suspicious about gold market manipulation; At least India’s government is candid about waging war against gold

The Big Picture:  Is every market rigged?

JPMorgan’s Master(s) of the Universe in Hot Seat

Posted by on May 3rd 2013 in CFTC, China, Federal Reserve, GATA, General Economy, George Soros, Gold, India, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

Gold and silver ended mixed on Friday, with the former flat and the latter gaining 1% after a better-than-expected non-farm payrolls report showed that the U.S. added 165,000 jobs in April.  But one job that might be in jeopardy is that of Blythe Masters, JPMorgan Chase’s head of global commodities, and a bête noire of retail silver investors.

When JPMorgan took over Bear Stearns in 2008, it famously inherited a slew of silver shorts.  It also inherited from Bear Stearns the rights to sell electricity from power plants in California and Michigan.  And according to a Federal Energy Regulatory Commission (FERC) document leaked to the New York Times, “Government investigators have found that JPMorgan Chase devised ‘manipulative schemes’ that transformed ‘money-losing power plants into powerful profit centers,’ and that one of its most senior executives [Masters] gave ‘false and misleading statements’ under oath.”

News & Views

Reuters/East Valley Tribune:  Arizona governor vetoes bill making gold, silver legal tender

The Economist:  America’s jobs report: Not swooning, not soaring

RTT/Wall St. Cheat Sheet:  U.S. factory orders fall more than expected in March; Are falling factory orders a bad economic omen?

Got Gold Report/The Daily Bell:  Charles Biderman – Harsh consequences from the end of money printing; Fed is tightening. No, it’s loosening. No, it’s …

GoldMoney:  Fear Index April 2012 – The calm before the storm; Gold market report – reduced volatility

Bloomberg:  Gold volatility fueled by structured note trades, BNP says; Gold traders most bearish in three years after drop

Jesse’s Café Américain:  The metals bears advance to Stalingrad

MarketWatch/Peak Prosperity/Got Gold Report:  What bullion dealers are saying about gold demand; What the gold charts are telling us; Gold and silver COT report for May 3

SilverSeek/Sprott Money:  Little cracks in confidence; Ask the expert – John Embry

South China Morning Post/Mineweb: Chinese mothers beat Wall Street to force gold price rebound; Who’s smartest on gold – Chinese housewives or George Soros?

Bloomberg:  UBS says India gold flows at least 5 times the 12-month average; Gold imports by India to decline as central bank curbs purchases

GATA:  Tocqueville’s John Hathaway – Somebody is ‘sitting on the gold price’; Bill Buckler’s farewell – Denying gold market manipulation is silly

Bloomberg: Justice Department official:  U.S. prosecutors pursuing Libor convictions

Business Insider/MSN Money:  Regulators blame Libor fixing on the sex, drugs, and lavish perks of London banking; Earlier:  Did coked-up bankers cause the financial crisis?

Down Day, Up Week for Metals; What’s Next?

Posted by on April 26th 2013 in CFTC, China, Federal Reserve, GATA, General Economy, Gold, India, JPMorgan, Media, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

Gold and silver ended the week up 4.7% and 3.1% respectively, despite falling on Friday by 0.6% and 1.7%. The reasons given for Friday’s drop included profit-taking and a large “margin call,” after the metals had initially advanced on a weaker than expected first-quarter GDP increase of 2.5%, leading to the characterization of the U.S. economy as “incredibly stagnant.”

Reuters quotes a Société Générale analyst who thinks the GDP shortfall “is encouraging for gold because the whole sell-off in the metal was linked to perceptions that the U.S. economy was getting stronger and stronger.” And asking “So what’s next?,” Jesse’s Café Américain sees no halt to QE “for the forseeable future,” and goes on to point out that “Gold and silver are lightly owned. When they break out and the common person becomes more aware of what is going on, there will be a huge shift in buying to the upside. And those who manage the markets fear this.  They not only fear their loss of control, but also the exposure of their market antics and the widespread corruption in the system.  We are in a credibility trap, after all.”

News & Views:

Bloomberg:  Gold traders most bullish in month as buying surges

Zero Hedge:  Who got the golden margin call at the European close?; JPMorgan accounts for 99.3% of the Comex gold sales in the last three months

BullionVault/Dan Norcini:  Gold shortage seen in Asia as physical market still tight;  Gold bounce coming to an end

Tim Iacono:  What do soaring call option premiums mean for gold and silver?

Washington Post/GoldSeek:  Economy grew at 2.5 percent in 1st quarter, amping fears of a stalled recovery; Hugo Salinas Price:  How to get the U.S. economy going again

CNBC/Bullion Bulls CanadaMore money printing? Here’s how it could happen; Bloomberg news – Central banks grossly incompetent

Eric Parnell:  Stock market triple fantasy; The 3 faces of silver

P. Radomski/KWN:  Silver’s underperformance against gold; Eric Sprott – Historic panic bottom ushers in new gold bull market

Herald Sun:  Gold bug bites again after sell-off

AP/Mineweb:  Fund managers see opportunity in gold’s price drop; Gold’s price plummet puts smiles on India’s government and brides alike

Bloomberg: Gold buyers throng Indian stores for second week on rally; Japanese seek refuge in bullion as yen slumps, inflation looms

GoldSeek:  Arizona’s hard currency: How much gold might it need?

SafeHaven/Globe & MailBetter “safe haven” – Switzerland or Canada?; Some like their money in Swiss banks, but Swiss keep their gold in Canada

GATA:  Swiss banking chief tries to quell clamor about gold; Ohmigod! A gold mining company notes suspicions of market manipulation

Zero Hedge:   CNBC viewership plunges to eight-year lows