Archive for the ‘Goldman Sachs’ Category

Metals Drop as Investors Shrug Off Ukraine

Posted by on April 16th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

UkraineWeHardlyKnewYee

After being “monkey-hammered early on,” gold and silver “limped back higher” to close down 1.8% and 2% respectively on Tuesday, despite a ratcheting up of Ukraine tensions. Gold was “hit by profit-taking as the rally to $1,330 on Fed minutes appeared overdone,” according to one precious metals trader, who added that “The break below 200-day moving average and $1,300 level also triggered tons of sell-stops.” Another factor weighing on gold was said to be “speculation that a gain in U.S. consumer prices will give the Federal Reserve more leeway to reduce monetary stimulus.”

And citing a World Gold Council report on “China’s gold market,” USA Gold points out that also on Tuesday, “the market was worried by the WGC’s opinion that Chinese demand in 2014 might fall short of the “exceptional” demand seen in 2013. The WGC expects 2014 to be ‘a year of consolidation.’ While speculators might view a protracted period of consolidation as a reason to look for yield elsewhere, most buyers of physical gold [and silver] are not speculators. They buy gold for the purpose of long-term wealth preservation. In that frame of reference, steady or even lower prices are a gift, allowing one to accumulate gold weight without chasing ever-rising prices.”

See also:

Dan Norcini/Zero Hedge:  World Gold Council report pressuring gold; Gold futures halted again on latest furious slamdown

Tim Iacono/GoldSeek:  Gold sell-off reminiscent of a year ago

BullionVault/Mineweb:  Silver prices “ready to break out” as futures betting jumps to pre-crash level; USGS – U.S. mined silver output continues to fall

CNBC:  Can gold confound the markets and hit $1,400?

Steve St. Angelo/Bloomberg:  Goldman Sachs is highly motivated to low-ball the price of gold

 

Metals Seen Supported by Fed, Stock Drop

Posted by on April 12th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

SilverOpenInterest

With gold and silver ending slightly higher on the week, while stocks continued plunging on Friday, Alasdair Macleod writes of a “better tone to precious metals,” which was set by Wednesday’s release of the relatively dovish minutes from March’s FOMC meeting.  He also contrasts gold, “where Comex volume is moderate,” to silver, where “volume is high indicating very strong support at current levels.”  His conclusion is that “bullion banks trying to balance their silver books cannot do so at current prices. Yet higher prices are likely to trigger a vicious bear squeeze, so it appears the bullion banks with short silver positions will remain trapped either way.”

And in reference to the FOMC minutes, MarketWatch quotes one analyst as saying that “the magic of the central bank’s comments is still very strong and this was one of the reasons that we have seen the bounce for gold this week…We think the downside is limited for now and there is more potential for the upside.  Weak earnings coming in so far — and this trend could very well continue next week. This is going to keep the correction going in the equity market and could make the metal more attractive.”

See also:

Jesse’s Café Américain:  Gold and silver charts – Flight to safety continues

Zero Hedge:  Goldman summarizes the rout – “Derisking is the name of the game”; Blythe Masters under investigation by federal prosecutors

Mining.com:   The case for higher U.S. interest rates and higher gold

Bloomberg/In Gold We Trust: Shanghai gold bourse to start lease platform by the end of June;  New physical gold exchange in Singapore

Time/CNN:  Moscow is ‘ready for combat,’ NATO says; Photos ‘show Russian military buildup‘ near Ukraine

Gold and Silver Rally on ‘Dovish’ Fed

Posted by on April 10th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Quants, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

MetalsRallyOnDovishFed

Gold and silver finished mixed on Wednesday, but both rallied along with stocks — see “Fed Cat Bounce” — after minutes from last month’s FOMC meeting showed that members seemed less inclined to raise interest rates than previously thought. “The Fed sounds less hawkish than it did last month, which is good for gold,” according to an investment strategist quoted by Bloomberg, who added that the market is nonetheless “confused because there are so many contradicting signals from the Fed.”

Or, as Dan Norcini, under the headline “Dovish Fed sinks US Dollar” describes it:  “Watching them swing from hawkish to dovish in such a short interval makes me understand why our markets are so screwed up. The Fed is consistently changing their assessment of things. That would be just fine and dandy were not the U.S. financial markets addicted to easy money and so utterly dependent on these jokers for their latest fix.”

See also:

Telegraph/Peak Prosperity: China ‘has more gold than official figures show’; China’s demand for gold has trapped the West’s central banks

BullionVault/SilverSeek:  Buying goldandsilver yet?; Real U.S. silver money would consume nearly half of world’s mine supply

J.S. Kim/Zero Hedge:  Bankers are using HFT algos to manipulate gold and silver prices; Put this guy in charge of the SEC

Wall Street on Parade/John Crudele:  Goldman Sachs drops a bombshell on Wall Street: Goldman keeps its “Flash Boys” under wraps

Bloomberg: Global growth threatened in $693 trillion derivatives review

Reuters/AP:  Separatists in east Ukraine call on Putin for help, Kiev warns of force; NATO’s military head – U.S. troops may be sent to Eastern Europe

MarketWatch: ‘How Gold has Stomped the Competition’

Posted by on March 22nd 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, India, Janet Yellen, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

MarketWatchGold

“After a 28% price plunge in 2013, the worst since at least 1984, analysts weren’t expecting much from gold this year,” begins MarketWatch’s annotated slideshow on how “Gold is beating nearly every investment this year…. Many big banks were forecasting average 2014 prices below $1,300 an ounce, down from last year’s average of $1,413. But the precious metal has already managed to outperform U.S. stocks, bonds, emerging markets and the dollar.

Gold benefitted as two important sources of demand bought at the same time: Western speculators and Eastern savers, said Brien Lundin, editor of Gold Newsletter…. The metal’s performance has been impressive against a bevy of assets. But its path is far from set. Developments between Ukraine, Russia and the West are still fluid, and hints from Federal Reserve Chairwoman Janet Yellen that a U.S. interest-rate hike could take place sooner rather than later could make bond yields more attractive. Still, if you were one of those contrarians who were quietly bullish in January, we’ll forgive some back-patting. In seven charts, here’s a look at how gold has stomped the competition and what could come next.” ….Read More >>>  

See also:

Zero Hedge/Mineweb:  Goldman doubles down its hate on the best performing asset of 2014; Goldman’s blinkered view on gold could be so wrong

Dan Norcini:  Carnage in biotech sector provides support for gold

SilverSeek/Jesse’s Café Américain: Ted Butler – Suing JPMorgan & the COMEX; “My primary concern is a lack of transparency.”

CNBC:  Peter Schiff and Mark Dow do battle on gold

Zero Hedge/Asia TimesPetrodollar alert:  Putin prepares to announce “holy grail” gas deal with China; How Crimea plays in Beijing

The Hankyoreh/Bloomberg:  Official gold market to open in South Korea; Smuggled gold in flower pots defying India import limits

Gold and Silver Fall on Jobs Beat

Posted by on March 8th 2014 in China, Federal Reserve, General Economy, Gold, Goldman Sachs, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

JobsFeb2014

Following Friday’s release of a better than expected non-farm payrolls report showing that 175,000 new jobs were created in February, gold and silver futures fell 1% and 3% respectively. “Investors were looking for a number that could potentially ‘taper the taper’ but obviously that concept is completely off the table,” according to one analyst quoted by MarketWatch.

But fund manager and frequent precious metals commentator, Axel Merk, tells Reuters that while the jobs number was “a decent data point,” he contends that “Ultimately, the Fed is not interested in tightening any time soon because Yellen says she doesn’t think inflation is a problem.”  And a post at Jesse’s Café Américain points out that “while gold fell down to the support of its tightening symmetrical triangle, it would not stay down, even in the non-active month of March which is seasonally poor for the precious metal.”

See also:

GoldSeek:  Gold and silver end mixed on the week

Peter Schiff/Dan Norcini:  Weather or not?; The Friday job’s curse

Zero Hedge:  Record jobs for old workers; everyone else – better luck next month; No raise for you – Earnings growth drops to new post-Lehman lows

Bloomberg:  Commodities – Gold defying Goldman Sachs with coffee percolating

In Gold We Trust:  China’s road to secret gold accumulation

CNBC:  4 potential killers lurk as bull market hits 5

Gold Tops $1,300; Silver Up for 9th Straight Day

Posted by on February 14th 2014 in China, Federal Reserve, General Economy, Gold, Goldman Sachs, Janet Yellen, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

Gold$1300

Gold settled above $1,300 for the first time since November on Thursday and silver was up for the 9th session in a row.  The gains were attributed to a larger-than-expected drop in U.S. retail sales and a rise in first-time jobless claims.  “Today’s key economic numbers makes it clear that all is not well,” according to one asset manager quoted by Bloomberg, while the head of a precious metals fund added that “The economic data today helped reaffirm the idea that the Fed is tapering too fast. There is a shift in sentiment, which is helping prices move up. The emerging-market situation and physical demand continues to remain supportive.”

See also:

Seeking Alpha:  Why Yellen is great for gold

GoldSeek/Real Asset Co:  Getting positioned in the precious metals; Should coins be in your portfolio?

Bloomberg:  Gold seen rising to $1,400 on 100-day average by Citi Futures

Jesse’s Café Américain:  “The precious metals cartel is giving up ground, but grudgingly”

Zero Hedge: Matt Taibbi takes on Blythe Masters & the banker commodity cartel/Original article

Silver Streak Hits 8 Days; Gold Flirts With $1,300

Posted by on February 13th 2014 in Bitcoin, CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

SilverStreak8Silver futures ended up for the eighth straight day on Wednesday — the longest streak of gains since April 2011 — and gold hit a three-month high, reports Bloomberg, “as speculation that U.S. stimulus will continue boosted the appeal of alternative assets.”  Citing Tuesday’s Congressional testimony by Fed Chief Yellen, and comments by St. Louis Fed President James Bullard on Wednesday, the Bloomberg article quoted one analyst as saying that “Bullard and Yellen made it clear that the Fed is not in a hurry to end stimulus. Continued injection of easy money into the system is helping gold.”

Gold fell just short of $1300/oz on Wednesday, before “the Anglo-American gold cartel” was said to have “brought the water cannons to bear, and pushed it back down to $1292 in the after hours.”

See also:

SilverSeek:  U.S. Mint nearly sells out of its weekly Silver Eagle allocation in 2 days

Gold Silver Worlds: The best performing financial asset in 2014 – Gold

Hard Assets Investor:  Emerging markets give gold & silver rally more room to run

BullionVault/MinewebChina uncertainty “driving gold prices” says SocGen; ‘Dama’ women behind much of China’s current gold demand

Zero Hedge: Goldman on gold – “This is a very important level to watch;  Jim Grant – “Gold is nature’s bitcoin

What’s JPMorgan’s Long Game?

Posted by on February 5th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

JPMorganLongGame

A Gold Silver Worlds‘ article highlights Ted Butler’s analysis that JPMorgan has built the longest position in physical silver in recorded history, having “accumulated between 100 and 200 million ounces of physical silver (if not more).” And in his latest weekly review, Butler writes that “Quite literally, what JPMorgan does or doesn’t do determines the price of gold and silver. It’s easy to lose track of the big picture when one focuses on all the details. But when you step back a bit, JPMorgan is dominant in just about every detail.”

Citing the above quote, a post at Jesse’s Café Américain applauds Butler for doing “an exceptionally good job of analyzing the Comex market, and I appreciate his efforts…. Sources like this are a blessing.”  But, adds that “I am rather reluctant to lay any wagers on JPM’s motives based on this information however.  It is not clear to me where their ultimate interests, as well as profits, may lie in this matter.  And for whom they may be acting, even as they seemingly take positions for their own accounts. Unfortunately, this is the nature of the game, in times of currency wars.   Some of the TBTF Banks act as instruments of policy for their respective governments from time to time, and are certainly beholden to them.  Everything is not always as it may seem.”

See also:

MarketWatch:  Gold ends 0.7% lower as dollar gains, equities rebound; silver adds 0.1%

TF Metals ReportBear down

Zero Hedge:  Citi – Stocks, bonds, gold, & JPY levels to watch

CNBC:  Marc Faber – Here’s how much I want stocks to fall; Peter Schiff – Prepare for a gold ‘moonshot’

GATA:  The gold market is central banking’s most desperate project

Mises DailyBernanke’s legacy – A weak and mediocre economy

‘Angry Bart Takes His Parting Shot’

Posted by on December 24th 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, Goldman Sachs, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

AngryBart

In early November, Bart Chilton announced that his 6 1/2-year tenure as a CFTC commissioner would end at the end of this year.  As the only commissioner who publicly expressed concern about gold and silver market manipulation heads for the exits, Bloomberg columnist William Cohan writes that “Chilton leaves behind a sobering message: As we long suspected, Wall Street continues to use every trick in its playbook to do whatever it can to eviscerate numerous post-financial-crisis rules. The arsenal includes high-powered lobbyists who outnumber lawmakers 10-to-1; $1,000-an-hour letter-writing lawyers who gain strength from negotiating over arcana; and the occasional hoodwinking of a president whose knowledge of the ways of finance are close to nil.” … Read More >>>

Before President Obama announced last week that he’s nominating Wall Street securities attorney Sharon Bowen to replace Chilton, the New Republic reported that Bowen “has little background in derivatives, commodities or agricultural markets—the core subjects of CFTC regulation—and no track record for reform.”

See also:

NY Times:  Federal Reserve grants JPMorgan right to expand its reach in electricity

Ted Butler:  JPMorgan and others used taper announcement to manipulate metals’ prices lower

Winter Actionables:  JPMorgan thought to be procuring gold on behalf of China

Saudi Gazette:  Drop in gold prices fuels buying frenzy

Times of India/ReutersSmugglers smile as Indian emigres can bring 1 kilo of gold into country legally

Zero Hedge:  A year later, Bundesbank has repatriated only 37 tons of gold (of 700 total)

GoldSeek/MarketWatchGold and silver gain in pre-Christmas trade; Gold pushes back above $1,200

Gold Scents/Greedometer:  Earnings season could bring the stock bear out of hibernation; Margin debt hits yet another new all-time high

 

The ‘Fix’ Is In, But It’s Now Getting Outed

Posted by on December 20th 2013 in CFTC, Gold, Goldman Sachs, Media, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!

SpeckSilver

Following up on Bloomberg‘s late-November exposé on the London gold fix, allegations of gold and silver market manipulation get more mainstream exposure in the news service’s publication of a commentary headlined, “How to Keep Banks From Rigging Gold Prices.”

Among the evidence cited by author Rosa Abrantes-Metz, is research by commodity analyst Dimitri Speck, from his new book, “The Gold Cartel.” She describes it as combining “minute-by-minute data from most of 1993 through 2012 to show how gold prices move on an average day. He finds that the spot price of gold tends to drop sharply around the London evening fixing (10 a.m. New York time). A similar, if less pronounced, drop in price occurs around the London morning fixing. The same GoldCartelBookdaily declines can be seen in silver prices from 1998 through 2012.” (See above chart)

Abrantes-Metz finds it “extremely odd that the prices of gold and silver are still based on such an archaic and exclusive system. Whether or not authorities  seek and find conclusive evidence of manipulation, they should learn the lesson of the London interbank offered rate and reform the gold and silver markets in a way that will deter such behavior. Both metals are highly liquid commodities, so their benchmark prices could easily be set by observing actual trades. To ensure reliability, the process should be overseen by an independent institution with the appropriate governance structure and minimal conflicts of interest.”

Gold Be Gone … To China

Posted by on December 20th 2013 in CFTC, China, Federal Reserve, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

GoldBeGoneToChina

With gold and silver off 1.8% and 2.7% respectively on Thursday, Jesse’s Café Américain addresses commentary by a Bloomberg analyst, who said that London’s gold vaults are “virtually empty. And went on to explain that the “gold had been transferred out of London, 26 million ounces, and its gone to Switzerland, where its been recast into a higher grade and shipped off to Hong Kong. And then into China, never to return.”

And in an interview with GoldBroker.com, Café proprietor Jesse further discusses the shift from West to East, and he’s also asked how concerned should gold and silver investors be about the correction in the metals, which has lasted more than two years:  “Corrections are all a part of a bull market. I would suggest that people not hold over large positions or use leverage if they are worrying. That is often a sign that they have not come to terms with what they are doing, and have not taken a position that serves them and their needs suitably. But to be direct, based on my own portfolio and positioning I am not concerned. My investment horizon is very long term. I am playing the turn of a page in history and these only have the appearance.”

Hathaway: If You Can’t Hold It, Fold It

Posted by on December 13th 2013 in Bailout, CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, IMF, Janet Yellen, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

HoldingGold

In what is heralded as “a brilliant study of the gold market,” Tocqueville Gold Fund’s John Hathaway looks at the “Big Picture in Gold as We Head into 2014″ and concludes with two words of advice, get physical:

“It seems to us that restoration of sustainable fiscal order remains a long shot and that money printing, thought by most to be only an emergency measure, will become the norm. Our negative view on the prospects for fiat currency has not been invalidated by the steep two year decline in gold price. When the market reverses, the diminished physical anchor to paper claims, concerns over title and encumbrances on central bank bullion, and worries over the drift of public policy will drive liquid capital into gold. However, this time around, it seems to us that the major recipient of flows will be the physical metal itself. Holders of paper claims to gold will receive polite and apologetic letters from intermediaries offering to settle in cash at prices well below the physical market. To those who wish to hold their wealth exclusively in paper assets, implicitly trusting the policy elites to resurrect normally functioning capital markets and economic conditions, we say good luck. For those who harbor doubts on such an outcome, we say get physical.”

More from Hathaway in a follow-up interview to his article, in which he reiterates that “We are in a world of permanent money printing, and what may trigger this massive squeeze in gold to new all-time highs is when this all dawns on the investment community at large.”

See also:

Mises Daily:  How the paper money experiment will end

Jesse’s Café Américain:  Holding gold or silver in unallocated storage or in ETFs & brokerage accounts

MarketWatch:  Gold & silver advance to post slight weekly gain; JPMorgan cuts 2014 gold forecast by 10%, leaves silver unchanged

Index Universe:  Gold could surprise on the upside next year

Zero HedgeSafe-havens sought as stocks tumble to worst run in 4 months

Dan Norcini:  Commitment of Traders and the reverse flash crash