Archive for the ‘India’ Category

Gold Underpinned by ‘Über-Accommodative’ Monetary Policies

Posted by on October 22nd 2014 in China, ECB, Euro, Federal Reserve, General Economy, Gold, India, Interest Rates, Russia, Silver, USD, Wall Street | Be the first to comment!

UberGoldSpot gold and silver gained 0.3% and 0.6% respectively on Tuesday, while futures prices doubled up that percentage, on what a Bloomberg article sees as the perception that the Fed will continue its low interest rate policy.  It notes that interest rate futures “indicated the odds of a U.S. increase at about 46.2 percent by October 2015, down from 55 percent a week earlier.” That notion is seconded by a USA Gold market report that gold “remains underpinned by global growth risks and the expectations that the central banks of the world will maintain their über-accommodative policy stances in hopes of mitigating those risks.”  It adds that “The European Central Bank is in the forefront on that meme these days.”

See also:

Coin News/Motley Fool CA:  Gold hits 5-week high, Silver Eagle sales top 36 million; Why silver is poised to hit $50

Mineweb:  Lawrence Williams – Chinese and Indian gold buyers are back in the market in a big way

Arabian Money/DNA India:  Indian religious buying forecast to almost double this season; Mad about yellow – India’s love affair with gold

IB Times/SharelynxRussia’s gold rush: Putin orders gold reserve buying spree to beat Western sanctions

Gold Switzerland/GoldCore:  Will this save the Swiss financial system?; Poll shows pro-gold side in lead at 45%

60 Minutes:  Turning mushroom hunting into gold in the Yukon

Gold Seen as ‘Growth Uncertainty’ Hedge

Posted by on October 21st 2014 in CFTC, China, ECB, Federal Reserve, General Economy, Gold, India, Interest Rates, Janet Yellen, Russia, Short Sellers, USD, Wall Street | Be the first to comment!

GDPprojections

Spot gold and silver gained about a half a percent Monday on what MarketWatch describes as a combo platter of “global economic uncertainties and overseas demand.”  It cites an analysis by Sharps Pixley, which observes that “While the sentiment towards gold has been soured given little inflationary pressure, the global equity rout and the on-going geopolitical risks have led to a rising demand for gold as an uncertainty and a portfolio hedge.”

“Concern that economic malaise in Europe will spread has helped revive gold demand,” reports Bloomberg, noting that “The 39 percent jump in net-long positions in futures and options last week was the biggest since June, U.S. data show.” And according to a UBS analyst quoted, “This scenario continues to be supportive for gold, as it allows for more room to rebuild positions in the near term should investor doubts on global growth and uncertainties on the timing of Fed rate hikes linger.”

See also:

Bullion Star/Jesse’s Café Américain: The Chinese precious metals market is on fire; Lower gold prices prompt large BRIC purchases

Bullion Street/Sprout Money:   India’s Diwali festivities could push gold higher; Why the Argentinean situation should make you buy gold

Hard Assets Investor/SilverSeek:  David Morgan on why $17 silver is unsustainable; Why worry about bullion silver?

Fox Business/Zero Hedge:  Jim Rickards:  Inflation-deflation tug-of-war means more QE; Santelli & Schiff: “A messy exit is a given… Ending QE will plunge U.S. into severe recession”

Peak Prosperity/Wolf Street:  How the Fed is purposely attacking savers – But bungling badly as it does; Designated losers of monetary policy

Wall Street on Parade/Confounded Interest:  Yellen -  Average net worth of 62 million U.S. households is $11,000; Worries that bottom 90% of Americans don’t own enough assets

China Gold: Production to Slow, Imports to Grow

Posted by on October 18th 2014 in Bart Chilton, CFTC, China, Federal Reserve, General Economy, Gold, India, Short Sellers, Silver, Wall Street | Be the first to comment!

ChinaGoldProduction

The growth in Chinese gold mine output is expected to drop from 6% this year to about 1% in 2018, says the analytics firm Business Monitor International.  It attributes the decrease to declining ore grades and waning profitability, which, reports Reuters, “will pave the way for rising imports to meet persistent strength in demand from Chinese consumers,” according to an analyst for the company.

And on Thursday, MarketWatch cited a note suggesting that “support for gold may come from seasonal demand out of India ahead of this month’s religious festivals, wrote strategists at Commerzbank in Frankfurt. September Indian trade data showed gold imports soared by 450% year-over-year to $3.75 billion, they said, which indicates Indian consumers haven’t been deterred from buying large quantities of gold by import restrictions. ‘If this should turn into a trend, it would doubtless lend support to the gold price,’ they said.”

See also:

SilverSeek/Reuters: Gold and silver end mixed on the week; Gold posts weekly gain on economic fears, U.S. Fed view

Mineweb:  Lawrence Williams:  The sky is falling! Should you buy gold and silver?

Zero Hedge:  Yellen translated – “Let them eat cake“; Calling the Fed’s bluff

Alasdair Macleod/GoldPrice.org:  Market Report: Gold benefits from market uncertainty; Price climbed over two crucial resistance levels this week

Mining.com/King One Eye:  Extreme precious metal shorting peaks; Why gold will keep shining

PTTM/MarketWatch/Bloomberg:  Former CFTC crusader Bart Chilton says he doesn’t feel bad in heart in shift to HFT advocate

Wall Street on Parade:  New book – Sen. Charles Schumer was regular visitor to Madoff offices

Metals Shrug Off Stock Selloff

Posted by on October 16th 2014 in CFTC, Federal Reserve, General Economy, Gold, India, Interest Rates, Short Sellers, Silver, Wall Street | Be the first to comment!

DowPlunge

Gold and silver prices continued their steady advance on Wednesday, with futures gaining 0.9% and 0.4% respectively as the Dow ended down 173 points, despite a late-session surge, and the U.S. dollar hit a five-week low.  Before stocks reversed course, Dan Norcini noted that gold “has been able to shrug off the selling pressure coming in from those selling it to cover losses in stocks but is having some difficulty getting through the $1250 level. Silver is being drug lower by copper but getting some buying related to gold’s good showing.” He concludes that given “the current equity weakness, unless we get some dose of economic data that is surprisingly strong … gold is drawing support from ideas that any notion of the Fed raising interest rates soon is effectively DOA for the time being.”

See also:

Confounded Interest/MarketWatch:  Stock market’s ‘Bloody Mary Morning‘; Tumultuous stock market plagued by ‘mini flash crashes

Short Side of Long/Telegraph:  Crude signaling weak economy; World economy so damaged it may need permanent QE

Seeking Alpha:  Why low interest rates are giving gold the buy signal; Trouble looming for the U.S., but not gold

Zero Hedge/Sovereign ManAll that is broken with the U.S. financial system in one chart; One simple chart to explain the defining problem of our times

Bloomberg/Mineweb:  Gold imports by India seen rising more than fourfold last month; Imports at a new high

Financial Times/GATA:  Swiss National Bank fights to block public gold vote; Gold stubs SNB’s toe, and the Financial Times says ‘ouch!

Gold Flows East, Will Pricing Follow?

Posted by on October 14th 2014 in CFTC, China, Federal Reserve, General Economy, India, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

 AsianPricingPush

With gold and silver futures ending up 0.7% and 0.2% respectively on Monday, as both the U.S dollar and stock markets fell, Coin News cites an analysis that “More safe-haven demand was featured amid the recent U.S. stock market sell-off. Short covering by the futures traders, whose bearish bets recently are not paying off, and bargain hunting in the cash market were also seen in gold to start the trading week.”

“Also underpinning gold was Chinese economic data for the third quarter suggesting the economy likely grew at its weakest pace in more than five years,” reports Reuters, leading investors to speculate that “Beijing might roll out more stimulus measures.” The data also showed that “Gold got a boost from a strong rebound in Chinese imports of industrial commodities in September.”

The Reuters article notes that “Singapore launched 25 kg (around 804 ounces) gold contracts on Monday, the latest Asian country to start exchange-traded contracts with the aim of providing a regional benchmark price.” The Wall Street Journal spotlights this shift in a feature headlined “Asian market hubs move into gold.” Click-thru on Google for the entire article or read an excerpt here.

See also:

Bullion Street/SRSrocco Report:  Gold trades above $1,200 on return of physical demand in India, China; Physical gold investment – The U.S. ranks worst in the world

Bullion Star:  Koos Jansen – 2013 Chinese gold demand was 2000 tonnes, says Shanghai Gold Exchange chairman; Listen to an interview with Jansen

Mineweb/Seeking Alpha:  Silver in supply deficit but price unmoved so far; Do silver shorts know there is a physical supply deficit?

Jesse’s Café Américain/Bloomberg:  Gold and Silver charts – A little flight to safety; S&P 500 slides to cap worst three-day drop since 2011

Zero Hedge:  This is what happens when someone is desperate to sell $750 million of stocks: Is this the real growth scare that markets fear?

Arabian Money:   Will gold and silver prices continue to go up as stocks go down?

‘Oversold’ Metals ‘Bounce Firmly Off Support’

Posted by on October 11th 2014 in China, Federal Reserve, General Economy, Gold, India, Interest Rates, Short Sellers, Silver, USD, Wall Street | 1 comment

MetalsBounceBack

Gold stalled out on Friday, falling a fraction of a percent as the U.S. dollar rebounded, but silver inched up and both metals gained on the week, with gold adding about 2.7% and silver advancing 3.2%. In his weekly market report, Alasdair Macleod writes that “This week more than any other it became clear that the global economy is stalling,” which is “creating a two-way pull for gold and silver. Declining commodity prices coupled with a strong dollar have hit both precious metals hard since mid-August,” but gold and silver “have become oversold and as a result have bounced firmly off support at $1180 and $16.75 respectively.”

See also:

Coin News/Numismaster:  Gold, silver and U.S. Mint gold coin sales surge on week; Silver Eagle rationing on the horizon?

BullionVault/SafeHavenDitch dollars, buy gold. For now.; U.S. dollar super-overbought

Jesse’s Café Américain:  Wall Street says gold & silver are dodgy investments, but stocks & bond are such values?

Natural News:  Super-rich class scrambles to buy gold bars amid uncertainties in global fiat currency

Reuters/Bullion Star:  Chinese gold buying picks up after holiday, Indian premiums rise; Hawalla money transfer system plays intricate part in Indian gold smuggling

The Australian/Patrick Heller:  Bullion price will rise to meet ‘peak’ gold next year; Gold for profit or wealth preservation?

Metals Extend Post-Fed Gains as Stocks Sink

Posted by on October 10th 2014 in Federal Reserve, General Economy, Gold, India, Interest Rates, Quants, Short Sellers, Silver, USD, Wall Street | 1 comment

SchizoStocks

Gold and silver futures decoupled from the whipsawing stock market on Thursday, gaining 1.6% and 2.1% respectively. “Gold is benefiting from a flight to quality as the stock market is heading into a correction,” according to a Comex trader quoted by Reuters, who added that “Both gold and silver appear to be bottoming out after they have been in a bear market for a long period of time.”

And MarketWatch cites the namesake of a Montreal-based research firm, Lamoureux and Co., who “said that he’s telling clients the Fed has no interest in increasing rates whatsoever. And that’s a positive for gold.”  It goes on to quote Lamoureux as declaring:  “We are super gold bulls now and think we have entered a new commodities bull cycle.”

See also:

StockCharts.com/CNBC:  Gold bouncing off support; Buy gold now, trader says

SilverSeek:  U.S. Mint record Silver Eagle sales – the best all year

Zero Hedge:  Did Thursday’s “Satan signal” in S&P futures give the ‘all-clear’ for selling to begin?

Pragmatic Capitalism/Bloomberg:  What will be the most likely cause of the next big downturn?; Jim Rickards – Fundamental U.S. economy is very weak

Sharps Pixley/GATA:  Is Switzerland about to purchase 1500 tonnes of gold?; Swiss vote on central bank gold could limit manipulation

Vancouverdesi.com:  India accused of acting like a gold sponge, soaking up world’s gold reserves

Indian Gold Demand Smokes Comex

Posted by on September 26th 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

IndianGoldSmokesComex

“After a gap of nearly five months, there is some cheer emerging from India for the bullion market,” begins a Mineweb report, “as buyers appear to be taking advantage of the relatively low gold prices. Gold demand has picked up across the country, according to traders, despite it being an ‘inauspicious’ period as per the Hindu calender.”  The period’s end, which occurred on Wednesday, “also marks the beginning of festive buying that peaks around Diwali,” the start of the Hindu New Year.

Given the Indian government’s restriction on gold imports, the buying season’s surge in demand is being met by another surge, one that has reportedly seen 50 tonnes of gold smuggled in over 10 days.

Jesse’s Café Américain puts the contextual icing on that cake:  “So much for the mainstream media reports of a waning interest in gold in India and elsewhere. To put this into perspective, there are just under 32 tonnes of total registered gold on the Comex.”

See also:

Bloomberg: Gold rebounds from eight-month low as U.S. equities slide

Dan Norcini: Stock market weakness brings safe-haven buying into gold, bonds:

Business Insider/The Trading Report:  NYSE margin debt drifting higher again; 5 U.S. banks each have $40 trillion in exposure to derivatives

John Hussman:  The Ponzi economy

Zero Hedge/Joseph Stiglitz:  China set to fire its central bank head, unleash the liquidity floodgates; “The U.S. will always pay its debt. Because it just prints the dollars.”

Pragmatic CapitalismThe great gold debate

Gold and Silver: ‘Sellers Remain In Control’

Posted by on September 25th 2014 in CFTC, ECB, Federal Reserve, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

StrongDollar

Spot gold and silver were off half a percent on Wednesday as the dollar gained on the back of single-family home sales hitting a six-year high in August, even though the overall housing numbers are seen as “still fairly depressed.” As for the dollar, “the rally in the U.S. dollar index to a four-year high has been a major bearish ‘outside market’ factor working against gold and silver,” according to an analyst’s report cited by Coin News, and “the continued bearish technical postures for both gold and silver are allowing the sellers to remain in control.”

See also:

MarketWatch/Gold-Prizes.biz:  Gold may rebound as extreme bearishness sets in

Mineweb/KWN:   Lawrence Williams – What’s behind the current silver disconnect?; Despite pressure, is silver ready to turn mega-bullish?

Numismastic News/Reuters:  Patrick Heller – Soft metals weaken U.S. coin prices; American Eagle gold coin sales set to jump in September

JS Kim:  Don’t be misled by weakness in gold & silver paper markets

Yahoo! Finance/Seeking Alpha:  Analyst – Dollar power is a problem for stocks

Arabian Money:  Can gold and silver really fail when stocks and bonds fall?

A Yuanderful New Era for Gold?

Posted by on September 20th 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, India, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

YaGottaYuander

Following Thursday’s launch of the Shanghai Gold Exchange‘s trading of contracts in the city’s free-trade zone, China’s first exchange completely open to foreign investors, Reuters reports that “A successful take-up of the exchange could see gold priced and paid for in yuan rather than the U.S. dollar, challenging the traditional dominance of London and New York in trading.  While physical demand provides underlying support for gold, prices are largely driven by speculative trade. China’s push for an international physical exchange means physical demand could have a stronger influence.” But BullionVault‘s Adrian Ash makes the case that “China’s inability to export gold bullion puts a big block on it affecting world prices.”

See also:

Bloomberg:  Gold falls on equity rally, silver drops to four-year low; Dollar has longest win streak since 1967 on divergence

GoldSeek/Mineweb:  Gold and silver fall more than 1% and 4% on the week; Julian Phillips – Silver at ‘bargain levels

Gold Silver Worlds:  Gold and silver prices drop to critical Fibonacci levels

Zero Hedge:  Fed’s Fisher admits “Fed has levitated markets“, warns of “signs of excess”; Quantitative proof the Fed is destroying the middle class

Fiscal Times:  Instead of QE, the Fed could have given $56,000 to every household in America

Reuters:  U.S. House passes Fed audit bill, but measure seen doomed in Senate; Angry with Washington, 1 in 4 Americans open to secession

The Wire:  Congress heads home after some eight days in session between late-July and mid-November

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

‘Retail Buyers’ Spike Silver ETF Holdings

Posted by on September 16th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Janet Yellen, Short Sellers, Silver, Wall Street | Be the first to comment!

SilverETFholdings

With gold and silver futures inching up 0.3% and 0.1% respectively on Monday, holdings at the world’s five largest silver ETFs hit a record high on Friday, reports Reuters, driven by a one percent rise in the U.S.-based SLV, which posted its biggest one-day inflow since May 1 of this year. The article cites precious metals dealers as saying that “Long-term silver retail buyers stepped up demand after silver broke below the key $19 level last week.”  And a partner at a commodities investment firm said that he expects “ETFs in silver to outperform those in gold as small silver speculators continue to come onboard.”

See also:

NASDAQ/SRSrocco Report:  Is silver a value at current levels?; The collapse of U.S. silver stocks as public debt skyrockets

Dan Norcini/Got Gold Report:  Hedge funds exiting gold once again; Koos Jansen – China again buys the dip in gold and silver gets scarcer

Bloomberg/Times of India:  India August gold imports surge 176%; China to invest $100 billion in India over 5 years

Telegraph/Ron Paul:  Anxious Scottish investors buying gold; Will the Swiss vote to get their gold back?

Ciovacco Capital/WSJ:  Fed: The key portion of this week’s statement; How does Janet Yellen spend her time? - Check her calendar