Archive for the ‘JPMorgan’ Category

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 Decouple From Stocks

Posted by on April 11th 2014 in China, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

FaberCrashTalk

Futures in gold and silver gained 1.1% and 1.6% respectively on Thursday, with “gold boosted by a sharp pullback in U.S. equities and follow-through buying a day after minutes from the Federal Reserve’s latest policy meeting revealed its cautious approach in future interest-rate hikes,” reports Reuters, quoting one commodity broker as saying that the latter “changed the dynamic of the gold market because now the fear of Fed raising rates has been pushed back further into the future.”

The Reuters article also notes that with the S&P falling 2% on the day, it “has given back all its gains to turn negative for the year.”  An analysis at Hard Assets Investor, headlined “Overdue pullback in S&P 500 to push gold higher,” argues that “Should stocks continue to pull back, gold may benefit from safe-haven buying. We maintain our view that gold will make a run above $1,400 sometime this year and that investors should consider buying at prices below $1,300.”

See also:

Miles Franklin/Mineweb:  Battlefield $20 silver; Silver being left behind in latest gold surge, but don’t despair!

The Gold Report:  Are you prepared for a bull market that will shock even the most ardent goldbugs?

SafeHaven/Of Two MindsChinese checkers with gold prices; Now that the U.S. and China have picked the low-hanging fruit, peak everything looms

New Yorker:  Is China the next Lehman Brothers?

FastMarkets/CNBC: Mitsubishi Corp – India may hold key to higher gold prices; Banker showdown – Bernanke tells off India’s Rajan

Zero HedgeWSJ  – Markets are in thrall to central banks rather than caring about health of economy

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

Gold and Silver Flip AM Script

Posted by on April 3rd 2014 in CFTC, China, Federal Reserve, General Economy, Gold, JPMorgan, Media, Monetary Policy, Quants, Russia, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

MetalsFlipMorningScript

On Wednesday, silver futures gained 1.8% to finish above $20 an ounce for the first time since March 24, and gold futures added 0.8%.  Both went vertical at the open, and as Zero Hedge noted:  “Instead of the smack-down that we have seen around the 8 a.m. ET time each of the last 10 days, today gold and silver are spiking. It is unclear what the catalyst is – just as it is never clear what the catalyst for the monkey-hammerings are – but the timing with Putin’s retaliation threats (specifically against a major bank with a mysteriously active gold vault) suggest some causation.”

See also:

TF Metals Report/IRD:  Putin plays a golden card; The world slowly waves “good-bye” to the petrodollar

Wall St. Cheat Sheet/InvezzHere’s why you should buy silver; Commerzbank – Silver price decline may just be corrective

Peter Schiff/Bill Bonner:  The stealth rally – Gold under the radar;   America’s credit supercycle: The end is near

Reuters:  Bullion market eyes e-platform to revamp London gold benchmark

Bloomberg/Barron’s: Katsuyama, Narang, Lewis debate speed trading; Hedge funds are the real losers from high-speed trading

Mike Shedlock:  Supreme Court removes campaign caps; Worst congress money can bribe; Expect more divisive politics

 

Metals Pare Q1 Gains, but Trump Stocks

Posted by on April 1st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!

MetalsQ12014

After falling a fraction of a percent on Monday, gold and silver prices ended down about 3% and 7% respectively for March, but logged gains of 6.8% and 2% for the quarter. Reuters reports that “Gold largely ignored Yellen’s strong defense of U.S. easy-money policies on Monday, when she said the Fed’s ‘extraordinary’ commitment to boosting the economy will be needed for some time to come.” And MarketWatch cites a Naxis Metals Review report predicting a period of consolidation for gold and silver, “during which costs of production are likely to become a more important determinant of prices than the strength of demand,” but, “as these rising costs of production catch up with the (falling) price of gold and silver, so prices will form a base and eventually begin moving higher once more.”

See also:

Mineweb/In Gold We Trust:  Is Chinese gold demand really falling? Probably not; West to East gold exodus in full swing

Jesse’s Café Américain/SafeHaven:  Gold and silver charts – JPM throws down 229,400 ounces of gold to meet deliveries; A golden opportunity coming in silver

Commodity Trade Mantra:  The accidental end to silver price manipulation; Gold trading market is not “fixed” – it’s rigged

Mike Shedlock/Barry Ritholtz:  High frequency trading hits “60 Minutes” scrutiny – Trading or skimming?; High frequency trading is legalized theft

New York TimesReview – “Flash Boys” is “guaranteed to make blood boil”; Read an adaptation from the book

Hot Money Moves In, and Out, of Gold

Posted by on March 25th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Quants, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

TheOldInOut-HotMoneyAndGold

Gold and silver futures ended off 1.9% and 1.2% on Monday, with gold’s fall attributed to the prospect of higher U.S. interest rates and a stronger dollar. In addition, MarketWatch cites a note from Commerzbank’s analysts saying that the drop was “due no doubt to further profit-taking after net long positions in gold were increased for the sixth week running in the week to 18 March.  At 121,100 contracts, they are currently at their highest level since the end of November 2012,” based on last Friday’s COT report.

But according to Dan Norcini, “Nearly all of those new longs were immediately under water as soon as the FOMC issued its statement last week. That and the fact that WWIII did not break out, as many of the perma gold bugs were predicting, was enough to turn the momentum back and that did it for the momentum-based funds. They are now selling.” And Bullion Vault‘s Adrian Ash adds:  “Buying gold we think is a smart idea. Chasing the price up…and then down…with gold futures and options is less clever. But it remains an ever-popular way of losing money for aggressive hedge funds and their formerly wealthy clients.”

See also:

ForexLive/Mineweb:  Will a golden cross save gold?; Gold uptrend to resume, silver ‘to rise faster’

Seeking Alpha:  Gold and silver could be in trouble

Bloomberg:  Silver vault for 600 tons starting in Singapore on demand

Zero HedgeMessage to the Fed - Here are a few things that you can’t do; In a world artificially priced to perfection, the imperfections appear

In Gold We Trust: Interview with Jim Rickards about his new book, “The Death Of Money

Wall Street on Parade:  Document – JPMorgan Chase bets $10.4 billion on the early death of workers

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

FOMC Meets Spell Weak Weeks for Gold

Posted by on March 21st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Quants, Russia, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

FOMCweeksGold

Zero Hedge:  “What is more confidence-inspiring in the Fed’s ability to manage the world and the continued dominance of the U.S. dollar as global reserve currency than a falling gold price… and when better to show that than FOMC meeting weeks… welcome to the centrally-planned world where the announcement of ongoing trillions in fiat dilution constantly crushes the price of undilutable money.”

The above chart comes courtesy of Meridian Macro. Click on the “Gold & Silver Report (weekly)” button on the charts page for a free pdf sample of their March 14 offering.

See also:

Jim Rickards: Fed does not want ‘disorderly’ rise in gold prices

Reuters/MarketWatch:  Gold flat on Fed plans, easing Ukraine tensions; Gold, silver settle at lowest levels month to date

Dan Norcini:  Easing Ukranian tensions, hawkish Fed, undercut gold

STA Wealth Management:  What history says about Fed rate hikes

Mineweb:  Yellen knocks gold. Will Putin drive it back up again?; Silver imports soar 180% in India

Reuters/Ted Butler:  CME Group to launch gold, silver copper weekly options in April; The COMEX has developed into a ‘bucket shop‘ comprised of speculators

GoldSwitzerland:  Koos Jansen – China’s gold policy is one of the world’s most important developments

Gold and Silver Log Weekly Gains

Posted by on March 15th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

Steady As She GROWS

Gold continued its steady rise on Friday, adding 0.5% for its fifth-straight session gain and ending up 3% on the week.  Silver rose 1% on Friday for a weekly gain of 2.3%.  Gold futures hit their highest price since since September 10, reports Bloomberg, with trading action “40 percent higher than the average in the past 100 days.” And with Sunday’s Crimean referendum looming, it quotes one commodities broker as saying that “We’re seeing investors shift out of riskier assets like the stock market and into the safety of gold.”

See also:

Dan Norcini:  Hedge fund short covering in gold is the story

Zero Hedge:  Citi – Is this gold’s breakout week?

Market OracleGold, silver, blind men and golden elephants

GoldSeek:  The curious case of the PM fix vs. the AM fix

Reuters/MNI/Fortune:  FDIC sues 16 banks for rigging Libor rateLawsuit excerpts; JPMorgan accused of aiding yet another Ponzi scheme

Sovereign Man:  The world is screaming for a new financial system

Gold Continues Rise; No Safe-Haven Bid for USD

Posted by on March 14th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

NoSafeHavenBid4USD

Silver ended off 0.4% on Thursday, which is what gold gained to reach a fresh six-month high.  After being down earlier in the day as weekly jobless claims hit a three-month low and retail sales saw their first gain in three months, “Gold then found support as equities reversed course,” reports MarketWatch, “apparently pressured by the escalation of conflict between Ukraine and Russia and downbeat economic data from China.”

And citing the above chart showing that the U.S. dollar is nearing lows that it hit last October, Dan Norcini wonders why it “has not been able to garner any support in the form of safe-haven buying related to the deteriorating crisis over in Ukraine,” given its recent role as “the ‘Go-To’ currency during times of financial or geopolitical crisis.” But what he doesn’t question is that “this persistent dollar weakness is providing a strong floor of support in the gold market.”

See also:

Ted Butler:  Why not just close the COMEX; A possible way out for JPMorgan

Mineweb/Steve St. Angelo:  HSBC – Silver’s three main drivers for 2014; Silver production from top six companies declined in 2013

Hard Assets Investor/MarketWatch:  Marc Faber – Why gold looks better than the S&P 500; Faber sees China growth at 4% — good news for its ‘gigantic’ bubble

GoldCore:  Russia may retaliate sanctions by demanding payment for exports in gold

Washington Post/Zero Hedge:  Russian troops gathering at Ukraine border for exercises as standoff continues; Where the troops are – The full “pre-takeover” infographic

Gold Gets Boost From Weak U.S. Data

Posted by on February 26th 2014 in Bitcoin, CFTC, China, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

GoldUpWeakData

Silver took a breather on Tuesday, ending off 0.1%, while gold added 0.4% to hit a fresh four-month high, reports Reuters, “after disappointing U.S. consumer confidence and a lackluster gain in home prices fueled concerns over the U.S. economic recovery.” To that point, Dan Norcini writes that “As long as US interest rates are not rising and investors/traders are of the opinion that the Yellen-led Fed is not going to hike interest rates anytime soon, the dollar is going to have some trouble and that means gold should continue to see rather good support on dips in price. The big key will be any economic data that comes out on the strong side – that will put a firm bid back into the dollar almost immediately and should pressure gold so anyone trading this stuff will need to pay close attention to nearly every single important economic data release.”

See also:

Barron’sGold is up 12% – Has a new bull market begun?

Hard Assets Investor:  Rising gold still contrarian play as bears outnumber bulls

SafeHaven:  All eyes on gold & China when silver could be the tipping point

SilverSeek:  The coming silver storm – The public is not prepared

Reuters:  U.S. senator presses CFTC nominees to rein in banks in physical market

CBS News:  Major bitcoin exchange goes dark, prices tumble

Silver: Longest Win Steak Since 1968; Seen Boosted by Chinese Data

Posted by on February 19th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

ChinaSilverDemandBefore spot gold and silver ended mixed on Tuesday, with gold off 0.4% and silver up 1%, Dan Norcini wrote of “both strong short covering and fresh buying occurring across the broad commodity sector this AM. The reason? Stronger than expected data out of China,” which he sees as “the reason that silver continues to outperform gold to the upside for now….Last week it was data revealing a surge in both imports and exports. Today it was the larger than expected foreign direct investment numbers. This is also the reason that the overall commodity sector continues to march higher. Shorts are getting squeezed out across the board.”

See also:

Zero Hedge:  Silver has longest winning streak since 1968Spikes to 3-month high

Seeking Alpha:  Gold and silver – Are shorts about to panic?

CNBC:  How the big money is betting on gold now

SiverSeek: Ted Butler – What really happened to Bear Stearns?

Wall Street Journal:  China overtakes India as world’s biggest gold buyer

Reuters:  Hong Kong gold exchange eyes 1,500-tonne warehouse in mainland China