Archive for the ‘Goldman Sachs’ Category

Traders Stock Up on Metals, Not Stocks

Posted by on July 26th 2014 in China, General Economy, Gold, Goldman Sachs, Iraq, Middle East, Russia, Short Sellers, Silver, Ukraine, Wall Street | Be the first to comment!

StockingUpOnMetals

Although gold and silver ended slightly lower on the week, they were back to being safe havens on Friday, with futures gaining about 1% each on what Bloomberg describes as “escalating havoc in Eastern Europe and the Middle East” that “boosted demand for haven assets.” Or, as a brokerage VP put it, “When you see schools shelled in Gaza and heavy artillery fire from Russia and Ukraine, people are very nervous, and you can’t blame them. As we go into the weekend, with the amount of turmoil that we have, people are going to buy gold.”  An opinion seconded by a strategist who added yet another hot spot to the mix, telling Reuters that “With the news flow coming out Russia and Ukraine and you don’t know what’s going to happen in Iraq, traders are buying gold as they don’t want to get too exposed to geopolitical risks going into the weekend.”

See also:

Zero HedgeStocks slide, gold soars on weak earnings, geopolitical fears; Goldman goes schizo on gold – Boosts price target to $1200 even as it’s “Selling It with conviction”

Jesse’s Café Américain:  Metals bounce, huge week for events & news coming

CNBC/Seeking Alpha:  BlackRock strategist – Stock market could get ‘nasty’; The blow-off top is here

New York Times/Bloomberg:  Op-ed – A Chinese gold standard?; Ecuador weighs escape from dollar ‘straitjacket’

BusinessWeek/Euro Pacific Capital:  Gold diggers revive French exploration as prices drive hunt; The strange case of German gold (scroll down)

Time/Daily Reckoning:  Meet America’s most beloved CEO—Too bad he just got fired; Where you can make $56,000 a year delivering pizzas

‘Boring’ Gold ‘Quite Resilient’ as ETF Holdings Surge

Posted by on July 3rd 2014 in CFTC, China, Clinton Inc., Federal Reserve, General Economy, Gold, Goldman Sachs, IMF, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

GoldETFSurge

With gold and silver futures gaining 0.3% and 0.9% respectively ahead of Thursday morning’s release of the jobs report for June, BullionVault‘s Adrian Ash tells MarketWatch that “Mid-June’s big jump aside, gold has become so boring not even U.S. payrolls are giving traders much fun right now,” but he adds that unless the jobs number exceeds 300,000, “it’s hard to see U.S. futures getting sold before the long weekend.”

This as Bloomberg reports that assets in GLD rose 1.4% on Monday and Tuesday of this week, the biggest two-day gain since November 2011. The article quotes one commodity broker as saying that “the dovish outlook from the Fed is increasing interest in gold, and we are seeing some investors return,” and cites a report from UBS AG analysts, who wrote that “Although the overall macroeconomic backdrop remains unfriendly towards gold, with ongoing QE tapering, looming rate hikes and stocks at record highs, prices have generally been quite resilient.  That the aggressive ETF selling of 2013 has not made a comeback has provided ongoing support.”

See also:

BullionVault/SRSrocco Report:  Silver prices- Is 14% enough for one month?; The coming two-stage rally in silver;

Alhambra Investment Partners/CNBCThe golden tail?; Trader- Gold will be the second half’s big winner

USA Today/The Hill:  Stock market’s correction-free run tops 1,000 days; Another financial meltdown on the horizon?

Arabian Money:  Is gold going to be an effective hedge in the next global financial crisis?

NY Times/Reuters:  Janet Yellen signals she won’t raise interest rates to fight bubbles; Yellen drives wedge between monetary policy, financial bubbles

Zero Hedge:  The Fed’s inflation survey that the Fed would rather not hear; “Clinton Inc.” raises almost $3 billion, and the biggest ‘donor’ is…

Wall Street on Parade:  Hillary and Bill- Their rugged journey from paupers to one-percenters in 365 days

Gold Holds Gains; Silver Keeps Surging

Posted by on June 21st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, IMF, Iraq, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

 BestWeekForMetalsInFourMonths

Gold futures inched up 0.2% on Friday, but silver gained 1.5% on what was seen as a “perfect storm” of buying.  Both metals had their best week in four months, and according to a Bloomberg report, “Trading in bullion options show the biggest rally in nine months has more to run after some contracts betting on higher prices surged by the most since 2012 yesterday.”  It points to Fed Chair Yellen’s outlook for low U.S. interest rates as “bringing investors back to gold.”

But another theory for the metals’ rise that took root in the financial alternative media — see post below — gets some mainstream exposure.  MarketWatch quotes an FX strategist who says that “In the background, the unwind of China’s commodity financing deals may be helping to boost the price of gold as Chinese speculators sell their physical gold and at the same time buy back their hedges in the futures market.  This mechanism assumes that the paper market dominates the pricing of gold rather than the physical market, which seems possible given the difference in volumes.” That it does. How about 55 to 1?; Maybe 100 to 1?; Or even 400 to 1?

See also:

Dan Norcini:  Silver takes the lead over gold; Inflation expectations rise this week

Arabian Money:  Geopolitics more important than Fed hints on inflation in shifting gold & silver prices higher from here

KWN:  Andrew Maguire – 90-ton delivery triggered short squeeze in gold; Grant Williams: “Given [gold's] scarcity, the prices that we could see are astronomical”

In Gold We Trust:  Investment gold demand higher in Switzerland than China?

Wall Street Journal:  IMF girds for market storms ahead; The Fed’s never-ending downward growth revisions

CBS News:  Former Goldman Sachs trader sues over skimpy $8.25 million bonus

‘Boring’ Jobs Number; ‘Very Interesting’ Response

Posted by on June 7th 2014 in CFTC, China, ECB, Federal Reserve, General Economy, Gold, Goldman Sachs, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

MixedBagJobsReport

Despite falling a fraction of a percent on Friday, gold and silver futures ended up on the week, about 0.5% and 1.7% respectively. May’s U.S. jobs gain of 217,000 was said by an analyst to be “the most boring number ever but it does give one message out which is things are not getting worse regardless how you read that data.  This has triggered some selling pressure for gold but nothing as many thought, because if we had a strong number today, the situation would have been very different.”

But one trader found the response by both the dollar and the gold price “very interesting. The dollar initially bumped up while gold dropped slightly but then both reversed course with the dollar moving lower and gold moving higher. Both markets then reversed course once again. The result of this is to provide evidence that investors/traders are uncertain in their outlook for both interest rates and inflation.”…Read more >>>

See also:

Comstock Partners/MarketWatchInflation vs. Deflation; Fed governor:  No rate hike until mid-2015 at earliest

Mining.com/Barron’s:  Europe’s leap into inflation unknown bumps the gold price; Gold headed to $1,400 on Asia demand?

GoldMoney: Alasdair Macleod – Asian gold strategy clarifying; Gold in near-death experience on the Comex

SilverSeekBullish record PM shorting

Fortune/MarketWatch:  Ecuador to Goldman Sachs – We win, you lose; Banned North Korean gold taints U.S. products

Arabian Money/IRD:  Will end of London silver fix also be important for the gold market?; The Barclays gold fix: Fake justice for real criminals

 

China and India Seen Outconsuming Mined Gold

Posted by on June 3rd 2014 in China, Federal Reserve, General Economy, Gold, Goldman Sachs, India, Short Sellers, Silver, Wall Street | Be the first to comment!

ChinaIndiaGold

In an interview last December, Bloomberg‘ precious metals analyst Kenneth Hoffman spoke of London’s gold vaults being “virtually empty,” with the gold having been sent to Switzerland, “where it has been recast to higher grade formats and shipped off to Hong Kong and then to China never to return.” Reporting on a recent Bloomberg-sponsored precious metals forum in London, Mineweb summarizes a presentation by Hoffman as showing that “China and India between them are consuming more gold than the world is actually mining.” In response, USA Gold’s Michael Kosares writes that “I cannot emphasize enough how important it is that the physical production is being drained from the market this year, and year after year, by buyers in India and China…. Whenever the West presents easy prices posted in the (arbitrary) paper markets, the East takes advantage in the form of hard physical metal.”  He reasons that “At some point, the market system breaks in favor of strong hands.”

See also:

SilverSeek/Investing.com:  Gold and silver end modestly lower; Gold falls on U.S. data, multiple ISM data corrections

Times of India/Want China Times:  Indian government cuts import tariff value on gold, silver; Wall Street concerned over China’s gold hoarding

Telegraph/SafeHaven:  China explores bond buying in first hint of QE; U.S. Treasury bonds, gold and the stock market

Wall Street on ParadeIs the market crazy? Treasurys are screaming crisis while stocks yawn

Seeking Alpha: June is historically the worst month of the year for silver; Why we are now selling our gold positions for silver positions

Bloomberg/Liberty Blitzkrieg:  Ecuador sends gold bricks to Goldman Sachs in liquidity hunt

Metals Ride Home Sales Slide Higher

Posted by on April 24th 2014 in China, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

NewHomeSalesSlideBoostsMetals,jpg

Gold and silver futures inched up a fraction of a percent on Wednesday with gold said to be “getting some bids after the disappointing home-sales data,” which showed that new home sales dropped 14.5% from February to March, hitting their lowest level since last July.  “The sector’s weakness could help convince the Federal Reserve to keep benchmark interest rates near zero long after it ends a bond-buying stimulus program later this year,” reports Reuters.  Also, a ratcheting up of tension over Ukraine was seen supporting gold.

But, lamenting that gold and silver “continued to be capped just below 1300 and 20 respectively” on Wednesday, a post at Jesse’s Café Américain notes that “Someone asked me today how it was that the prices could be ‘capped’ so effectively given the continuing pressure on physical supply by buyers from Asia.” Explaining that “The paper markets are where the price is set, and they have only tenuous connections to fundamentals like supply and demand for real products,” he predicts that eventually “the paper and physical will have to reacquaint themselves and converge, and I suspect that will be a notable reunion indeed.”

See also:

Got Gold Report/KWN: Elephant tracks signal upward reversal in gold; Grant Williams – West hemorrhaging gold, but here’s its true Achilles’ heel

CNBC:  Playing gold?  Keep an eye on silver

Mineweb: Chorus to lower gold curbs grows louder in India; So the funds sell gold – Look beyond for demand signals

King One Eye:  Two charts showing inflation heating up

BBC:  Special Putin silver coins mark Crimea annexation

Silver Eagle Sales Set Record Pace

Posted by on April 23rd 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

 SilverEagleSales

Gold and silver futures finished mixed on Tuesday, with silver up a cent and gold off about 7 dollars to hit its lowest level since mid-February. Gold was said to have been spared a deeper drop by an upgrade of the precious metals mining sector from “sell” to “neutral” by two Goldman Sachs’ analysts. And also on Tuesday, reports Coin News, “bullion Silver Eagle coins topped 17.3 million in year-to-date sales. The series has been around since 1986 and sales have never been as high during the January through April 22 period. Tuesday is the first time that Silver Eagle sales surpassed those from last year which were at 17,291,000 on the 22nd.”

See also:

Jesse’s Café Américain/Zero Hedge:  Gold and silver charts – Hotel California; Gold tumbles to 2-month lows… because It’s Tuesday

Reuters:  E-trading pulls gold into forex units as commodity desks shrink

SilverSeek/Pater Tenebrarum: Silver up and S&P down;  Gold looks ugly, but the dollar looks uglier

The Daily BellReuters analysis -Printing money is more important than ever for Yellen

Confounded Interest:  Bernanke: QE was for “The man on the street” (Wall Street, that is!)

Yahoo Finance/Of Two Minds:  The astounding power of “economic elites”; The political poison of vested interests

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