Archive for the ‘Goldman Sachs’ Category

Metals Quiet Ahead of Fed

Posted by on October 28th 2014 in Bart Chilton, CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, India, Interest Rates, Janet Yellen, Monetary Policy, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

MetalsQuietAheadOfFed

Silver and gold futures inched up and down respectively on Monday, with the market said to be in “a wait-and-watch mode” ahead of this week’s FOMC meeting. One reason that gold “came under pressure” on Monday, reports Reuters, was “a sharp pullback in crude oil after Goldman Sachs slashed its price forecasts, citing lackluster global demand.” But it was also “underpinned” by China’s net gold imports from Hong Kong hitting a five-month high in September. This as the Times of India reports that annual Swiss gold exports to India have hit a record high level in advance of Switzerland’s gold referendum on November 30.

See also:

Mining.com/Mining Feeds:  Will the Fed turn off the QE tap?; What will the end of QE mean for the precious metals?”

Motley Fool CA/Market Sanity:  3 reasons why I remain bullish on silver; Rick Rule – Why to love the silver bear market

SafeHaven:  Gold and silver – Respect the trend but prepare for a reversal

Telegraph/BullionVault: BIS warns on ‘violent’ reversal of global markets; Gold as investment insurance

SRSrocco Report:  China- 10,000 tons of gold reserve? Could have been done with ease

Zero Hedge:  How China & gold will shape the future; Caption contest – Bart Chilton salutes you

Metals Take Small Steps in Right Direction

Posted by on October 3rd 2014 in CFTC, China, CME Group, ECB, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!

SmallStepAs gold futures inched down on Thursday, and silver added about a half a percent, Comerzbank analysts noted that “Gold and silver have recovered somewhat from their respective multi-month and multiyear lows.” This as the U.S. dollar and the euro are said to “have turned modestly corrective this week, with the euro being boosted amid disappointment that the ECB didn’t make that final leap into QE.”

And, Reuters reports that “pro-democracy rallies in Hong Kong underpinned gold prices,” quoting one metals analyst as saying: “With the likelihood of further weakness in equity markets, coupled with the still-volatile situation in Hong Kong, we would rather not want to be short gold here, as we think the precious metal may benefit from some short-covering heading into the weekend.”

See also:

Nikeei Asian Review/NY Times:  China trying to avert another Tiananmen in Hong Kong; Mainland Chinese tourists get a glimpse of rebellion

Examiner.com:  China will use gold and gold pricing to force global currency reset

Coin News/Bloomberg:  U.S. Mint coins gain again; Gold sales at Perth Mint reach 11-month high as prices retreat

USA Gold:  U.S. Eagle gold and silver coin sales surged in September

SilverSeek/Daily Reckoning:  Gold to silver ratio – sentiment; 4 ways to make a fortune with one precious metal

Bloomberg: High-speed trader accused of commodity market ‘spoofing’; Is the New York Fed a pushover for big banks? Dudley fires back

Public Integrity:  Megabanks lock up prison financial services – Government gives no-bid contracts

Gold/Silver Ratio Tops 70

Posted by on October 1st 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | 1 comment

Gold:SilverRatioTops70

With spot silver slumping 2.5% on Tuesday, and silver futures diving 19% for the quarter, the biggest drop since mid-2013, the falling price is bringing out the coin buyers.  The 4.1 million 2014 American Silver Eagles sold in September more than doubled August’s total, and was the “highest since sales of 5,354,000 in March,” reports Coin News.  “Silver Eagle sales for the year are at 32,251,000, the second quickest pace in the coin’s 29-year history.”

An Economic Times article deems silver to be a “better investment bet than gold,” given silver’s sharper fall in price, compared to gold’s, along with silver’s rising industrial demand.  It also points out that the gold/silver ratio, which hit 71.2 on Tuesday, is “much above the 10-year average of 57.75 times. So the risk-reward ratio is more in favor of silver.”

See also:

Numismatic News:  Patrick Heller – Silver gets cheaper relative to gold

Reuters/Dan Norcini:  Gold posts first quarterly loss this year as dollar soars; EuroZone inflation data hammers the euro

SafeHaven: Does surging demand for gold and silver coins signal a bottom?

Bullion Star/USA Gold:  China aims to surpass U.S. in official gold reserves; Why China thinks gold is the buy of the century

Zero Hedge:  Why is China hoarding gold? Alan Greenspan explains

BBC/Reuters:  Hong Kong democracy protesters defiant on National Day; Protests approach potential National Day flashpoint

Wall Street on Parade/Washington Times:  Carmen Segarra – Wall Street’s Spy vs. Spy; Sen. Elizabeth Warren calls for corruption investigation of Federal Reserve

Silver Price Seen Struggling—To Go Any Lower

Posted by on September 27th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Quants, Russia, Short Sellers, Silver, Wall Street | 1 comment

SilverTDI

Referencing the above chart of The Disparity Index (TDI), for silver, which measures the relative position of its current price to the 40-week moving average, Gary Christenson calls attention to “the recent smash-down in silver prices and its deeply over-sold daily status,” which has led to a current daily silver TDI reading that’s “the most over-sold since the post-1980 crash.

And in his weekly market wrap-up, Alasdair Macleod cites an exceptionally high volume of futures contracts being swapped for physical silver. “Could it be that this silver was required to be delivered to other markets,” asks Macleod, “such as Shanghai, where stocks are depleted and silver is trading at a price premium? Could it be that the acceleration of demand for silver eagles is indicative of the demand for physical silver at these low prices? If so, it is an indication that Comex is pricing silver futures too low to reflect genuine demand, and the price will struggle to go lower.”

See also:

Bloomberg/LA Times:  Gold drops 0.5% as U.S. economy expands most since end of 2011; silver gains 0.6%

Zero Hedge:  High-yield credit’s worst week in 15 months sends stocks sliding; It’s the dollar, stupid!

WSJ:  Watch that rising dollar, it might eventually give the Fed pause; U.S. dollar strength not likely to dampen inflation much

GoldCore:  Currency wars deepen – Russia, Kazakhstan buy very large 30 tons of gold in August

Jesse’s Café Américain:  William Cohan responds on his silver rigging exposé - Two U.S. national publications refused the story

Michael Lewis – The secret Goldman Sachs tapes:  ProPublica article; This American Life episode

Salon:  Wall Street’s new jackpot at taxpayers’ expense

Metals Gain Ahead of Fed

Posted by on September 17th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, India, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

China'sStealthQE

Gold and silver advanced for the second and third session respectively, with gold said to be “getting a bid as the dollar weakened and China has announced some stimulus program,” described as a “stealth QE” that injected the equivalent of some $81 billion of liquidity into five banks.  The metals were also seen benefiting from talk that the Fed will slow-walk any eventual interest rate increases, in advance of  Wednesday’s conclusion of the two-day FOMC meeting. And with silver outperforming gold, Reuters reports that “a technical indicator showed Tuesday’s gains sent the white metal out of oversold conditions.”

See also:

Hard Assets Investor:  Bulls shouldn’t be worried, they should buy if gold falls to $1,180

Michael Pento/Seeking Alpha:  Why Goldman Sachs is wrong on gold; Complete 2nd Quarter gold all-in costs show that ‘peak gold’ may be a reality

GoldCore/Reuters:  Gold demand in India triples as China launches global gold bourse this Thursday

Bloomberg:  China may boost gold reserves amid imbalances in holdings; Biggest banks said to overhaul FX trading after scandals

Wall Street On Parade:  There’s a bear growling in this bull market; Today’s stock market – Shades of the company town

Of Two Minds/Mises CanadaJanus Yellen and the great transition from risk-on to risk-off; Economic policy treats symptoms, not underlying causes

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