Archive for the ‘Monetary Policy’ Category

Taking Stock: Metals Gain on Equities’ Pain

Posted by on December 12th 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, Goldman Sachs, Interest Rates, JPMorgan, Middle East, Monetary Policy, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!


Despite falling a fraction of a percent on Friday, spot silver and gold added 4.4% and 2.6% respectively on the week, as the Dow ended its worst week since 2011, reports Bloomberg, finishing Friday’s session “with a 100-point lurch in the final half-hour of trading, as equities tumbled around the world after crude extended declines below $58 a barrel.”

Summing up the week, a Commerzbank analyst tells Reuters that “When the equity markets dropped quite sharply, precious metals soared, so there is definitely still the link between equities and gold in particular (due to) risk appetite among market players. Some of the equity markets had a decent run this year. We don’t expect this to be continued to the same extent next year, so this might give some tailwind to gold prices.”

See also:

GoldMoney/Jesse’s Café Américain: Market report – Gold was the safe-haven this week; Gold and silver charts & commentary

CNBC/USA Gold: Oil has world markets over a barrel as Fed meet looms

Zero Hedge/Bullion Star: Austria considers repatriating its gold; WGC notes 2014 Chinese gold demand could reach 1,700 tonnes

GoldCore: New York Times on benefits of gold in currency wars

Politico/Confounded Interest: How Wall St. got its way in spending bill

David Stockman/New Yorker: Memo to Citigroup CEO Michael Corbat: Does your crony capitalist plunder know no shame?; The winner of the spending-bill vote: JPMorgan Chase CEO Jamie Dimon

Eagles Score Annual Sales Record

Posted by on December 8th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, USD, Wall Street | Be the first to comment!


On Monday, American Silver Eagles hit an annual sales record, as the latest tally by the U.S. Mint put the sale of 2014-dated bullion Eagles at 42,864,000, besting 2013’s previous record by almost 200,000. But, reports Coin News, “This year’s annual record cannot climb too much higher. The supply of Silver Eagles will be shut off for about three weeks. On Friday, the U.S. Mint told its authorized purchasers that it was transitioning production from 2014-dated coins to 2015, and that it expects to have ‘enough coins to offer allocations through the week of December 15th.'” More from Silver Coins Today, which reports that the launch of 2015-dated Eagles will be January 12.

See also:

SilverSeek/Reuters: Gold and silver gain about 1%; Gold jumps above $1,200 on chart-based buying surge

KWN: James Turk – Here’s the reason gold and silver spiked after Comex close

Bloomberg: Gold bulls return as wagers on stimulus accumulate

Casey Research: Seven questions gold bears must answer

Zero Hedge/SafeHaven: On precious metals, patience, & paperbugs; Why Wall Street and governments hate gold

Bullion Star/SRSrocco Report: China’s Jan – Nov net gold imports  – 1,212 tonnes; Top primary silver miners Q3 2014 — Losses at $19

Morningstar/Alhambra Partners: Something’s not working in November jobs report; A matter, it seems, of faith

Metals Said to Have ‘Run Out of Big Sellers’

Posted by on December 6th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Interest Rates, Monetary Policy, Short Sellers, Silver, USD, Wall Street | Be the first to comment!


After the November non-farm payrolls report showed a gain of 321,000 jobs, spot silver and gold came off lows on Friday to end the day down 0.9% and 1.2% respectively, reports Reuters, quoting one analyst as saying, “It will be interesting to see how (gold) develops as we move towards the FOMC meeting on Dec. 17.” He predicts that “If we have a more hawkish Fed, more of an adjustment in interest rate expectations, and a still higher dollar,” it will be negative for gold. Given those prospects, a report concludes that “the damage may have been greater” for gold and silver on Friday, but argues that both were spared larger losses because they have “run out of big sellers.” And despite Friday’s downturn, silver and gold still ended up 5.5% and 2.1% on the week.

See also:

GoldSeek/SafeHaven: Gold shorting exhaustion; What’s next for the dollar and gold?

GoldMoney: Alasdair Macleod – Commodities & the dollar; The case for silver

Mineweb: Lawrence Williams – Is Indian gold turnaround a game changer for prices?

GoldSeek/Zero Hedge: New signs gold and silver are returning as monetary assets; Voices grow louder to end the U.S. dollar’s reserve status

Bullion Star: Belgium investigating repatriation of gold reserves; World Gold Council rectifies 2013 Chinese gold demand

Bloomberg: China said to consider scaling back restrictions on gold imports; Shanghai gold trade passes record as China seeks more sway

MarketWatch/GoldSeek It’s official – America is now No. 2; But, with an * The world’s most corrupt countries ranked

ECB’s Draghi Bugs Out On Gold

Posted by on December 4th 2014 in ECB, Euro, Federal Reserve, General Economy, Gold, Interest Rates, Monetary Policy, Short Sellers, Syria, USD, Wall Street | Be the first to comment!


In not committing to additional stimulus measures on Thursday, ECB head Mario Draghi specifically ruled out the possibility that future asset purchases would include gold, which temporarily put pressure on gold before it pared losses on a Euro rebound, ending the day off 0.2% as silver advanced 0.7%.

USA Gold calls out Draghi for having “said the ECB had discussed all assets except one. Really? Sovereign bonds? Student debt? Auto loans? Junk bonds? Everything except gold? I think that was thrown in to counter ECB board member Yves Mersch’s comment from several weeks ago that gold purchases were indeed possible. Draghi just doesn’t want the gold market to run on him.”

Zero Hedge, and others, pile on: “So to summarize, the ECB will willingly take on Greek bank CDOs, Italian 3rd lien espresso shop loans, Spanish condo HELOCs, and Portuguese Used-Car ABS… but not – never – gold.”


Oil Pumping Gold Up and Down

Posted by on December 4th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Interest Rates, Monetary Policy, Russia, Short Sellers, Silver, USD, Wall Street | Be the first to comment!


Spot silver and gold ended mixed on Wednesday, with the former off a fraction of a percent while gold was up about one percent. In what Reuters describes as “volatile trading,” gold was said to have been “boosted by firmer oil prices that prompted investors to shuffle positions while largely shrugging off the firm U.S. dollar.”

“A whipsaw in oil is spurring the biggest price swings for gold in almost nine months,” reports Bloomberg, pointing out that the correlation between the two “rose close to 0.4 today, the strongest link since July 2013. A reading of 1 means the prices move in lockstep.” It quotes one trader predicting “higher volatility in gold with oil and interest rate-hike uncertainty,” but another tells MarketWatch that despite volatility between now and year’s end, “I don’t see a sustained move one way or the other. I think we range trade for a while and attempt to consolidate gold around the $1,200 level and silver above $16.”

See also:

Fiscal Times/Mike Shedlock: Fed’s Beige Book finds ‘optimistic‘ view of the economy; Yield curve casts doubt on “robust recovery” theory

BullionVault/Zero Hedge: U.S. rates won’t rise in 2015; “We’re all in a Ponzi-world … hoping to get bailed-out by the next person”

BullionStar/ Eurosystem expressing an increasing interest in gold; Swiss vote the low point for gold?

MarketWatch/Pragmatic Capitalism: China plays big role in oil’s slide; Oil price won’t stay low forever

Bonner & Partners: Don’t bet on $70 oil lasting long; Has Russia reached “maximum pessimism”?

GoldMoney: Alasdair Macleod – Russia’s monetary solution

Debt Marches On; Can Gold Regain Ground?

Posted by on December 3rd 2014 in General Economy, Gold, India, Middle East, Monetary Policy, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!


Spot silver held Monday’s gains on Tuesday, ending unchanged, while spot gold fell about 1% as oil took another spill and the U.S. dollar rebounded. Gold and silver futures didn’t fare as well, falling some 1.5%, but with the U.S. Mint posting sales of 139,000 Silver Eagles on Tuesday, the bullion coins are now less than 500,000 away from hitting a new annual sales record.

With the dollar’s strength, gold is losing ground on U.S. debt, as shown in the above chart dating back to 2001.  This as USA Gold notes “that U.S. national debt very quietly surpassed $18 trillion yesterday,” and “the mainstream financial press seems to have ignored the milestone entirely. Has massive debt become so commonplace that nobody even takes note of big-round-numbers ending in twelve-zeros anymore? If that’s true, then there’s nothing to stop governments from running up even bigger burdens. Bigger burdens that will require more currency debasement to carry. All the more reason to get some gold now.”

See also:

Sovereign Man/Reason: Five complete lies about America’s new $18 trillion debt level

Seeking Alpha/MarketWatch: Accumulate gold amid bearish sentiments

SafeHaven/Mike Shedlock: What’s driving gold now?; Huge commodity reversals – Is the bottom in?

Short Side of Long: Currencies & metals overview

KWN/GATA: Tocqueville’s John Hathaway – Banks scrambling to find metal to cover shorts; Monetary metals markets likely reversing, Hinde Capital CEO Davies tell KWN;

Sprott Money/SRSrocco Report: India submits to the free market, fails to suppress gold; Massive Indian silver imports – setting up for another big record year

After Swiss Say Non!, Metals Say Oui!!!

Posted by on December 2nd 2014 in China, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, USD, Wall Street | 1 comment


After falling off in early trading, spot gold and silver soared to end up 4.2% and 6.9% respectively on Monday, reports Reuters, attributing the gains to “the surging oil market, technical buy signals and potential for increased Indian imports… The rally followed a thinly traded move lower, viewed by traders as overdone, after Switzerland voted on Sunday against a proposal to boost its gold reserves.” MarketWatch adds a dollar retreat and a downgrade in Japan’s sovereign debt rating to the list.

See also:

Jesse’s Café Américain:  Metals bears shocked by unusual intra-day reversal

Zero Hedge/Coin News:  Silver soars 17% from intraday lows; Gold rebounds to 5-week high, bullion Silver Eagles top 42 million

SilverSeek:  2014 Silver Eagle & Silver Maple Leaf sales – Five times larger than 2007

Bloomberg/Smaulgld: Surprise end to India gold controls boosts wedding demand; Is India about to set off another gold bull market?

Avery Goodman:  Swiss gold referendum? No… the big news is that India is back!

GoldSeek/Mineweb: Dramatic increase in gold flows into China; China holds the gold price key

Metals Drop On OPEC Production Punt

Posted by on November 28th 2014 in CFTC, Federal Reserve, General Economy, Gold, Interest Rates, Middle East, Monetary Policy, Short Sellers, Silver, USD, Wall Street | 1 comment


Spot gold and silver ended off 1.9% and 4.3% respectively Friday, falling with oil as the U.S. dollar gained after OPEC left its production target unchanged at a meeting on Thursday. “It is a brave new world,” declared one analyst quoted by Reuters, “OPEC is clearly drawing a line in the sand at 30 million barrels per day. Time will tell who will be left standing.”

In response to a CNBC article asking, “Could oil collapse cause next credit crisis?,” USA Gold’s Mike Kosares looks at the potential impact on gold and silver prices if that happens:

“If the latest oil shock – this time in a southerly direction – creates knock on effects, we will hear a great deal about systemic risks in the days and weeks ahead, Recall that gold at first went south in the crisis of 2007-2008 and then headed sharply higher as investors moved to shore up their portfolio’s against the possibility of a showdown on Wall Street and within the banking system.

We are in a much different situation today than we were back then and the system as a whole still suffers from the damage done by the last crisis. If a crisis were to hit today, it would start with a much weaker line-up on the playing field than the last time around. Keep in mind too that all of this has occurred because quantitative easing on a global basis simply has not worked.

We suspect that gold and silver demand will grow stronger even if the price weakens, or perhaps because the price weakens. Those who understand the virtues of gold ownership are not going to suddenly go to their national currencies, or the banking system, or the New York Stock Exchange as a defense. They will go to gold and silver.”

‘Extreme’ Bearishness Seen Boding Well for Metals

Posted by on November 27th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Interest Rates, Monetary Policy, Russia, Short Sellers, Silver, USD, Wall Street | Be the first to comment!


“Sentiment toward gold is at such a bearish extreme,” begins a MarketWatch analysis, that “it seems as if every market seer is saying it’s time to buy because nearly everyone else has been selling.” It cites the proprietor of a sentiment tracking service, who calls an early November sentiment showing that just 3% of traders were bullish, one of “the most extreme we have seen.” He compares it to a 98% bullish reading in August 2011, “just as gold was about to embark on a journey from more than $1,900 an ounce down into the $1,100s.” Among the strongest of the bearish-is-bullish adherents are the Elliott Wave practitioners, two of whom expressed their optimistic forecasts for gold and silver last week.

See also:

Coin News: Gold and silver dip slightly in quieter pre-holiday trading

John Hathaway/The Gold Report: Monetary tectonics; Harry Dent’s simple strategy for surviving withdrawals from ‘markets on crack’

Zero Hedge: Bubbleology – The science of bubble money; Central bank credibility, the equity markets, and gold

GATA/Gold-Eagle: Curbing central banks is the point of the Swiss gold initiative; Grandmaster Putin’s golden trap

SRSrocco Report: Exchange warehouse silver stocks – large declines across the globe

Arabian Money/SafeHaven: What’s delaying the U.S. stock market crash?; What are the rich doing with their money?

Swiss Gold Vote Coverage Ramps Up

Posted by on November 26th 2014 in CFTC, China, CME Group, ECB, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Media, Monetary Policy, Quants, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!


As the non-financial mainstream media begin focusing on Sunday’s Swiss gold referendum, USA Today reports a Bank of America prediction that “the price of gold could jump to more than $1,350 an ounce — an increase of 18%,” if the “yes” vote prevails. And a Guardian article, headlined “Fears that ‘dangerous’ Switzerland referendum could spark gold rush,” refers to a quote by the chairman of the Swiss National Bank, who said during a ‘sermon’ he delivered at a Swiss church, “The initiative is dangerous because it would weaken the SNB.”

But the lion’s share of the Guardian‘s quotes come from precious metals analyst and blogger Koos Jansen, who calls the Swiss initiative “merely part of a increasing global scramble towards gold and away from the endless printing of money,” adding that “While those behind the Swiss initiative have often been portrayed as crazy, they’re merely acting out of fear that their central bank is losing control of its monetary policy, and of the Swiss franc being sucked into this currency war and losing its value.”


Coin News/SilverSeek:  Precious metals rise as dollar dips, U.S. coin sales gain; Silver – what COT analysis tells us

Gold Silver Worlds:  Algos gone wild?  Gold price went ballistic to $1,450 in less than 20 minutes

Bloomberg/Mineweb:  China’s gold imports rise for a third month on jewelry sales; China 2014 gold demand heading for 2,100 tonnes

SafeHaven/Financial Post  Can gold extend its rally?; 6 reasons to be bullish on gold

Bloomberg:  Platinum & Pallidum – HSBC, Goldman rigged metals’ prices for years, suit says

GATA/WSOP: U.S. Senate report shows how easily banks can rig gold, copper, and other markets; Scale of Wall Street’s commodity holdings are “unprecedented in U.S. history

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!


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!


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 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