Archive for the ‘India’ Category

Metals ‘Creep Back’ After ‘Leaky’ Poll

Posted by on November 20th 2014 in CFTC, China, General Economy, Gold, Goldman Sachs, India, JPMorgan, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

SwissGoldPollDoubt

A poll indicating a drop in support for the “yes” vote in the Swiss gold initiative was initially cited for gold futures falling 1.5% Wednesday morning. But as the above chart shows, investors bought the news and futures ended off only 0.3%, as it was observed that “The clearly leaked results sparked considerable weakness in gold and silver, but once the data was released, markets began to creep back – perhaps questioning the plausibility of such a big swing in such a short amount of time.” And while gold ended slightly down, silver futures added 0.7%.

See also:

SRSrocco Report: U.S. Mint reports on Silver Eagles: Huge demand & weekly rationing

Bullion Star/Peak Prosperity: India precious metals import explodes in October; Eric Sprott – Global gold demand is overwhelming supply

Zero Hedge: How central banks use “gold swaps” to boost their holdings

GoldCore/Sprout Money: Unusual Russian central bank gold buying announcement fuels gold’s rise; Gold Wars – Putin’s mining buddies are stepping up to the plate

NY Times:  U.S. Senate report criticizes Goldman and JPMorgan over their influence in commodities market

ProPublica/NY Sun: Secret tapes hint at turmoil in New York Fed team monitoring JPMorgan; “Too-big” banks – Finally time to break ‘em up?

Wall Street on Parade: Book claims stark parallels between JPMorgan & Gambino crime family

Russia/Ukraine Gold — All In vs. All Gone

Posted by on November 19th 2014 in China, Federal Reserve, General Economy, Gold, India, Interest Rates, Monetary Policy, Russia, Short Sellers, Silver, U.S. Congress, Ukraine, USD, Wall Street, Warren Buffett | Be the first to comment!

Russia:UkraineGold

While Reuters pegs Tuesday’s gains in gold and silver to a falling dollar, a Bloomberg article headlines Russia adding to its gold reserves as a major factor in gold topping $1,200 an ounce on its way to a two-week high. “The fact that Russia is buying more gold instead of diversifying into another currency or buying more dollars is a big positive,” said one trader, in response to a report that Russia has purchased about 150 tonnes of gold so far this year, almost twice its 2013 buy, including 35 tonnes since the end of September.

But in Ukraine, according to a Zero Hedge post, the head of the country’s central bank said during a TV interview that “in the vaults of the central bank there is almost no gold left,” adding that there’s “a small amount of gold bullion left, but it’s just 1% of reserves.” Earlier this year the IMF put Ukraine’s gold holdings at 42.3 tonnes, or 8% of total reserves. Zero Hedge concludes: “now that the disappearance of Ukraine’s gold has been confirmed, perhaps it is time to refresh the “unconfirmed” story that a little after the current Ukraine regime took power the bulk of Ukraine’s gold was taken to the United States.”

See also:

Mineweb/SilverSeek: Gold bounces back above $1,200 – will it jump higher?; Gold and silver supply is very tight

Dan Norcini/Sprout Money: Gold taking cues from forex market movements; When will gold’s fundamentals rise to the surface?

Bloomberg: Gold lending rate most negative since 2001 on longer refining

Acting Man/TradePlacer: Wrinkles of the Swiss gold referendum; Impressions of the latest TV debate

Mauldin Economics/Peak Prosperity/Wolf Street: Correction? What correction?; John Hussman – The stock market is overvalued by 100%; Warren Buffet is dumping stocks out the backdoor

Confounded Interest: Fed’s FOMC speeches become more complex over time as Middle Class feels more abandoned

Rutherford Institute/LA Times: Are ‘We the People’ useful idiots in the digital age?; NSA surveillance bill defeated in Senate

Silver’s Million Ounce Monday

Posted by on November 18th 2014 in CFTC, China, ECB, Euro, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, USD, Warren Buffett | Be the first to comment!

MillionOunceMonday

Although spot gold and silver ended off 0.1% and 0.7% respectively on Monday, as the dollar rose on news overnight, that Japan fell into a recession, more than a million Silver Eagles were sold on the first day the coins were available since going dark almost two weeks ago. “At 40,393,000 coins sold in 2014 so far,” reports Coin News, “there is now just one stronger year in the Silver Eagle’s 29-year history — 2013 at 42,675,000 coins.”

And an argument that silver is showing “Signs of Life,” suggests that despite the “demoralizing” price action since July, recent technical and fundamental activity “could be screaming at us that this is about to change. Increasing physical demand highlighted by a lack of availability of and rising premiums for silver coins and bars coupled with an extension and overbought condition in the gold-silver ratio is significant. Add to that a pair of bullish key-reversal days on consecutive Fridays validated by the same action in gold.”

See also:

Mineweb:: Elliott Wave analyst sees big gold and silver price surge ahead

Mining.com/Bullion Star: India back to being world’s top gold consumer; Who’s feeding China’s gold hunger?

Jesse’s Café Américain/GATA: How many potential owners per ounce of registered Comex gold?; Four key observations from Deutsche Bank’s report on the Swiss gold initiative

BullionVault: Eurozone’s QE “could include gold bullion” to boost inflation

Zero Hedge: Here is your “global recovery” in 24 charts; Mission accomplished – Stocks and homeless kids hit all-time highs

Reuters/PBS NewsHour: The COLA crunch: Why Social Security isn’t keeping up with seniors’ costs; Laurence Kotlikoff’s Social Security advice archive

Silver Bears Melting Away? Swap Gold for Silver?

Posted by on November 13th 2014 in CFTC, CME Group, General Economy, Gold, India, JPMorgan, Quants, Short Sellers, Silver, Wall Street | 1 comment

SilverBearsMeltingAwayAs it’s argued that the silver bears are running out of steam, or already have, but with the gold/silver ratio still above 74 as of Wednesday, Numismaster‘s Patrick Heller raises the prospect of swapping your gold for silver. He points out that the ratio “has been in the 50s much of the time over the past few years,” and he expects “a long-term equilibrium to hit somewhere around 35:1 to 40:1 between the two metals.” That said, Heller presents a number of well thought-out factors to consider, and comes down on the side of “a definite maybe,” depending on the circumstances of the trade and your current holdings. And he concludes by emphasizing that the swapping question “is different than asking if one should own any precious metals at all. A decision to own physical gold or silver is what I think of as buying insurance against the risk of calamities with paper assets such as stocks, bonds and currencies.”

See also:

SilverSeek: Gold and silver end slightly lower; Gold loses luster as retail investors look to silver

Bloomberg/GATA/Jesse’s Café Américain:  Six banks to pay $4.3 billion in first wave of currency-rigging penalties

Reuters/Arabian Money:  Swiss regulator flags attempt to manipulate bullion benchmarks; UBS fined for silver price manipulation, so this is now a matter of fact not speculation

BullionVault/Bullion DeskGood news for gold bulls from the LBMA’s near bears; Fragmentation of precious metal markets could lead to some headaches

Bloomberg/WSJ:  Swiss franc cap tested as gold bugs push referendum; Swissie close to crunch point in runup to gold referendum

Resource Investor/Mineweb:  India’s gold import bill triples to $3.5 billion in October; Scottia-Mocatta – India gold imports to rise into 2015

Metals Tumble as GOP Wins Boost Dollar

Posted by on November 6th 2014 in CFTC, Federal Reserve, General Economy, Gold, India, Interest Rates, Russia, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

GOPdollar

Spot gold and silver ended off 1.8% and 3.6% respectively on Wednesday, reports Reuters, as the U.S. dollar rose, “extending multi-year highs after Republicans in mid-term elections won control over both chambers of the U.S. Congress for the first time since 2006, lifting investor expectations for more pro-business policies.”

While one analyst suggested that “Conservatives by nature are more hawkish and that is pushing the dollar higher. People do not see the need for gold,” another said that “Republicans might be harder on the Fed and loose policy. There’s little reason to hold gold when forward interest rates are going in one direction.”

And in response to a Wall Street Journal article, headlined “Good Morning, Ms. Yellen, Rand Paul on Line One,” USA Gold points out that “Yellen will advocate aggressively for continued Fed ‘independence,’ but I remind you of the recent statement made by former Fed chair Alan Greenspan: “I never said the central bank is independent!

See also:

Reuters/Coin News:  U.S. Mint temporarily sold out of Silver Eagles amid huge demand

GoldCore:  “Global scramble” for silver – coins “hard to get”, “premiums likely to jump”

Zero Hedge:  Paul Singer – Gold, bonds and “maybe history has stopped”; Russian ruble plunges to new record low as central bank hints at gold sales

Forex Live/Bloomberg View:  BOJ Minutes: Will keep easing until 2% inflation stable; William Pesek – Is Bank of Japan’s governor a genius or a madman?

Resource Investor/Market Realist:  Indian gold bullion imports hit 17-month high; Why India’s gold imports are increasing

Mineweb/Reuters/Politico:  U.S. miners may profit from GOP election blow-out; Energy seen getting biggest boost from Republican Senate; Elections give Keystone a filibuster-proof majority

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

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 | 1 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?