Archive for the ‘India’ Category

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

Down Week Also Brings Talk of Peak

Posted by on September 13th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Iraq, Middle East, Short Sellers, Silver, Wall Street | Be the first to comment!

?PeakGold?

With gold and silver falling some 3 percent on the week, USA Gold’s market report observes that “A lessening of geopolitical tensions (albethey superficial), expectations of diverging monetary policies and the resulting rise in the dollar are all contributing to the weaker tone in the yellow metal. However, a couple key factors suggest that the downside is limited from here. Previous forays below $1200 have prompted strong buying interest,” and, “the supply of gold is in fact tightening already.”

It cites a Wall Street Journal interview earlier this week with the CEO of mega-miner Goldcorp, Chuck Jeannes, who said that miners have reached “peak gold,” which he sees as “very positive” for gold’s long-term price. More on “peak” prospects, from Mineweb‘s Lawrence Williams, who writes that “Jeannes is almost certainly correct in his prediction that global gold output is about to turn downwards, and may well remain on a downwards path for many years to come.”

See also:

Mining.com/Got Gold Report:  Heavy precious metals shorting is bullish; Speculator ‘insurance shorts’ and swap dealer shorts likely to spark a counter rally in gold

SilverSeek:  Will the real silver commercial traders stand up?

Reuters/Bullion Star:  India’s love affair with gold may be over; India’s June gold import highest in 12 months

Seeking Alpha/Forbes:  Gold – Russia, Iran and China are ‘Doomsday Preppers‘; Transacting in gold can shaft the IRS

Street Talk Live5 things to ponder -”bear-ly” extant; The 7 deadly sins of investing

The Automatic Earth:  The Fed has a big surprise waiting for you

Wall Street Journal/Of Two Minds:  The Federal Reserve’s too cozy relationship with banks; Why has classical capitalism devolved to crony-capitalism?

TPM-AP/Liberty Blitzkrieg:  Has the world been bamboozled by the ISIS PR machine?; Florida Congresswoman – “I’m glad people have this 9/11 mentality again”

Dollar Strength Trumps Hotspots—For Now

Posted by on September 10th 2014 in CFTC, ECB, Federal Reserve, General Economy, Gold, India, Middle East, Monetary Policy, Russia, Silver, Ukraine | Be the first to comment!

PumpMeUpBefore spot gold and silver staged a late rally Tuesday to end up a fraction of a percent, they were weighed down by the dollar hitting a 14-month high against the euro, and what was seen as an easing of tensions in Ukraine:  “Political turmoil in various parts of the world that made gold attractive earlier this year seems to have eased, and now economics is overriding geopolitical events,” according to a precious metals dealer quoted by Bloomberg. But a USA Gold market report, while acknowledging that “recent cease-fires in Ukraine and in Gaza have perhaps prompted the unwinding of some safe-haven positions,” reminds that “the underlying problems that have resulted in these global hotspots are a long-way from being resolved.”

See also:

GoldCore/TradePlacer:  Macro factors dominating gold price as U.S. dollar outweighs physical demand & investor flows; Rising dollar weighing on gold & silver, but short-term reversal possible

Financial Times:  India prepares for shining return of gold demand

Bullion Star/Reuters: German gold repatriation accelerating; Peru’s gold output will likely fall 20 percent this year – official

Jesse’s Café Américain/Seeking Alpha:  Learning to love the Fed’s bubbles our only choice; Tracking the decline in risk aversion

Wall Street on Parade: Contagion – What the next Wall Street crisis will look like

CNBC/ValueWalk:  American stock holdings at 18-year low; CNBC’s ratings drop to 21-year low

Gold and Silver Supply: A Mere 20 More Years?

Posted by on September 6th 2014 in China, General Economy, Gold, India, Russia, Silver | Be the first to comment!

 

Gold&SilverSupply

See Ya in September!

Posted by on August 30th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Middle East, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

HopeSpringsSepternal

Gold and silver futures fell about a half a percent on the final U.S. trading day in August, but it’s said that “September should be glowing for gold,” with the biggest boost likely coming from India. The article accompanying the above chart points out that Indian seasonal buying which is forecast to be better than last year, “typically increases with the country’s festival period, which runs from late August to October….” A Wall Street Journal feature on India’s ‘improving appetite‘ for gold, is echoed by a Scrap Monster report that gold premiums in India have more than doubled this week, “in anticipation of towering festive season demand.”

See also:

Jesse’s Café Américain/SafeHaven:  Coppock Indicator – An intermediate term bottom for gold is in; Enormous paper silver trading volumes

BullionStar.com/Smaulgld:  Precious metals markets – China vs. US; The Importance of gold to nations & individuals

WSJ/USA Gold:  Bernanke – 2008 meltdown was worse than Great Depression; Don’t think it can’t happen again

Businessweek/CBS News: For every education level, real wages have gone down so far this year; Americans fear economy is permanently scarred

CNBC/Dow Jones: One-percenters bullish on US despite ‘failed’ Obama presidency; Fed’s Lockhart & Fisher were active personal asset traders in 2013

Zero Hedge:  Marc Faber slams US intervention in Middle East, warns “whole region will blow up

Metals Edge Down as Stocks, Dollar Gain on QE Hints

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

 ECBQE

Following a brief move higher on Monday, spot gold and silver ended down a fraction of a percent, with gold said to have been under pressure from “a stronger U.S. dollar and rallying global financial markets,” buoyed by the prospect of the ECB launching a QE program, based on remarks by Mario Draghi at Jackson Hole. But USA Gold points out that “the yellow metal has proven fairly resilient … Despite the dollar strength—which is more a function of euro and yen weakness.  A weak round of U.S. data this morning may be helping the cause as well, pushing back Fed rate hike expectations somewhat.”

See also:

Bloomberg/Washington Post:  Jackson Hole theme – Labor markets can’t take higher interest rates; Central banks to lawmakers - You try growing the economy

Confounded Interest:  Yellen discusses labor slack, but not terminal (money) velocity or sterility

John Hussman/HBR:  Fed policy and the growing gap between Wall Street and Main Street; Profits without prosperity

Bloomberg:  Speculators lower gold bull wagers on U.S. rate outlook; Silver open interest reaches 14-month high on short bets

Seeking Alpha/BullionStar.com. Commodity outlook – Silver; India imports 2559 MT of silver in 5 months

Gold Scents/SilverSeek:  Manipulation is still alive and well in the gold market; Beditching hour - Silver knocked down at 6 p.m. for 83% of sessions in last 3 years

Metals Still Not Moving Much; Fed Split on Rate Rise

Posted by on August 21st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

GoldStayingPuts

By one account, gold and silver prices “seem determined to hold on here,” as they continued to trade in a narrow range on Wednesday, with spot silver up 0.2% and gold off 0.4%.  Reuters attributes the drop in gold to gains in the dollar, “on economic optimism after the minutes of the Federal Reserve’s latest meeting showed the U.S. central bank has seen progress in the U.S. labor market.” But MarketWatch, describing “a growing division within the Fed” over the health of the labor market, reports that “a majority still don’t believe there’s been enough progress to consider altering interest rates soon.” The July minutes were also dismissed as “a market diversion until Jackson Hole.”

See also:

Zero Hedge: Jackson Hole – ‘Tremendous’ downside risks if Yellen doesn’t go full-dovish

Street Talk Live:  The illusion of strength; Alternative measures suggest weaker economy

Reuters/Seeking Alpha:   Fading volatility promises long period of gold stagnation; Silver prices will remain rangebound

Got Gold Report:  Heckle if you want, but be prepared for anything in gold and silver

Hard Assets Investor/Casey Research:  Gold/silver ratio says silver is cheap, but it can get cheaper; Silver – As close to a no-brainer investment as it gets

Business Insider:  Ten countries hoarding enormous piles of gold

‘Cautious’ Investors Seen Keeping Gold Fashionable

Posted by on August 12th 2014 in China, Federal Reserve, General Economy, Gold, India, Iraq, Middle East, Russia, Silver, Ukraine, Wall Street | Be the first to comment!

GoldShirt

The value of an Indian businessman’s new gold shirt was virtually unchanged Monday, while silver, a more practical wearable, gained 0.8%.  Gold’s flatness was attributed to “rising global equities, and an apparent easing of tensions over Ukraine and the Middle East,” with stock markets said to have “largely ignored news Russia would send an aid convoy to eastern Ukraine, a move Western officials have said could serve as a pretext for an invasion.”

But “world inserurity” is still seen as likely positive for gold, according to former Bank of England governor Mervyn King.  And, as one analyst quoted by MarketWatch points out:  “Interestingly, while the yen has unwound, other safe-haven assets such as gold haven’t seen much movement at all. Perhaps this highlights the degree of cautiousness investors are still exercising at the moment.”

See also:

Bullion Vault/Casey ResearchSilver vs. gold investing; Top 7 reasons I’m buying silver now

BullionStar.com/Gold Silver Worlds:  Chinese gold demand 1094 metric tons y-t-d, silver premium at record high; Is gold demand in China really collapsing?

SafeHaven/Gold Scents:  Potpourri of chartology – Precious metals, U.S. stocks and energy;  Are stocks finally starting the topping process?

Confounded Interest/CSMThe Gilded Age: A tale of the Federal Reserve; Wall Street – Whose bull market is it?

GoldSeek/Mineweb:  Dennis Gartman – Gold vs. The Force; Gartman reckons end-game for gold price management could be nigh

Guardian/Daily Beast/Vox:  U.S. denies role in alleged plot to oust Iraqi prime minister; U.S. bombing its own guns in Iraq