Archive for the ‘Russia’ Category

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!

OilPumpingGold

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/Mining.com: 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

‘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!

GOODnewsBEARS

“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?

Metals Seen Riding ‘Wave’ Higher

Posted by on November 21st 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Quants, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

AnalystsSeeMetalsRidingWaveHigher

In a Mineweb article published earlier this week, by Lawrence Williams and headlined “Elliott Wave analyst sees big gold and silver price surge ahead,” Williams reference’s Wikipedia’s definition of Elliott Wave as “a form of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.”

In addition to the analyst cited by Mineweb, Peter Goodburn, another prominent Elliott Wave adherent is Avi Gilburt, whose articles are regularly published on Seeking Alpha.

Gilburt, who is more an analyst of, than advocate for precious metals, takes up their cause in his latest missive. “I do not often write about the metals on MarketWatch,” he begins, “but have seen too many bearish articles calling for the death to the metals, so I felt compelled to speak up. While many are now saying it is time to sell metals, I will have to disagree. The time to sell your metals was several years ago. Now is the time to start looking to buy them back.”

See also:

Reuters/Coin News: Spot gold rises as price drop tempts physical buyers; Gold futures dip for second day, U.S. Mint sales rise

Bloomberg: Gold heading for longest stretch of weekly increases since July

Sharelynx/Contra Corner: : Chart – Russia adds another 600,000 ozs of gold to its reserves in October; As “sanctions war” heats up, will Putin play his ‘gold card’?

Reuters: Unusual gold moves in Asian hours puzzle jittery traders

Barron’s/MarketWatch: Jeremy Grantham – S&P 500 could gain another 10% before “crashing as it always does“; Man who called last stock crash — Peter Schiff — is already blaming the Fed for the next

The Real News/Time: The power to create money in the hands of the banks; Study suggests banking industry breeds dishonesty

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

Marc Faber: Physical Gold Trumps Mining Shares

Posted by on November 14th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, USD, Wall Street | 1 comment

BuyGoldYouCanHold

In a subscriber-only ETF.com interview, excerpted by Hard Assets Investor, Marc Faber weighs in on where gold’s headed and why he prefers the end product over the companies that mine it:

Q:  Gold plunged immediately after the [Oct. 31] BoJ announcement [that it would expand its asset purchases], which came only days after the Federal Reserve announced the end of QE. Where do you see gold headed in 2015?

Faber: I think it will go up. But can it go down first? Yes. In general, I would say the game that central bankers are playing is very clear: They start out with QE1 in the U.S., and then that forced essentially other central banks to do the same, to also go QE. They’re kind of passing each other the ball. One stops, the other one starts. It’s basically a game designed to kill the purchasing power of paper money. I’m not sure they’re aware of it, but in my view, this is the beginning of the end of paper money in this century.

And asked about physical gold vs. mining shares, Faber says: In general, my advice to investors is to own physical gold and not gold mining shares. Because in a disaster scenario, you don’t know what financial assets will be worth, whereas physical gold is in your possession.”…Read more>>>

See also:

Bloomberg/24/7 Wall St.:  Gold inches up, silver flat, as jobless claims rise more than forecast

Dan Norcini/WGC:  World Gold Council issues its latest report

Acting Man:  Gold market sentiment – A contrarian’s dream?

Forbes/TradePlacer:  Are small investors right about silver?; Ted Butler to silver miners – COMEX is responsible for low silver prices

Telegraph/RBTH:  Putin stockpiles gold as Russia prepares for economic war

Gold Market Macro: Eastern physical demand versus Western financial supply – who will win out?

Gold Rebound? GOFO It!

Posted by on November 12th 2014 in CFTC, China, General Economy, Gold, Iraq, JPMorgan, Russia, Short Sellers, Silver, Syria, USD, Wall Street | Be the first to comment!

GofoGold

With gold said to be “surprisingly volatile, with sweeps up and down this week,” Tuesday was an up day, as spot gold and silver added more than 1.5%, with the gains attributed to a falling dollar and increased physical demand. “Retail demand is very strong since prices came off,” according to one trader quoted by Reuters, who added that “Asia is also showing steady buying interest.”

This as Bloomberg reports that gold “should find solace after rates at which bullion is lent for dollars turned negative, signaling tighter supply.” It’s Chart of the Day, above, “shows the three-month gold forward offered rate has turned negative on a weekly basis. Prices rose in three of the past four times this occurred since last year.”  Last week it was reported that the gold forward, or GOFO rate, was the most negative since 2001.

See also:

Coin News:  U.S. Mint to resume Silver Eagle sales on November 17

Reuters/AJA:  Russian central bank buys up domestic gold output as sanctions bite; Putin goes for the gold

AP/GoldCore:  Obama, Putin circle each other warily in China; New currency wars cometh – Gold to be “last man standing”

The Gold Report/Daily MailGold vs. fiat currency – A conversation with Alan Greenspan; ISIS wants to introduce its own currency – Plans to bring back solid gold and silver dinar coins

MarketWatch/Gold Silver Worlds:  Gold will signal when stocks have peaked; The Dow to gold ratio: Will 2015 be the turning point?

Bullion Bulls Canada/Zero Hedge:  The next crash in 2016; Former Goldman banker reveals the path to next depression & stock market collapse

Salon/Wall Street on Parade:  JPMorgan’s $9 billion witness puts government testimony by her boss into question

Metals Rebound as Jobs Report Underwhelms

Posted by on November 8th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Interest Rates, Russia, Short Sellers, Silver, Ukraine, USD, Wall Street | Be the first to comment!

MetalsGainOnJobs

Spot gold and silver gained 2.8% and 1.9% on Friday, following a weaker-than expected October jobs report that led to the dollar suffering its biggest drop in three weeks. But dismissing the prospect of a sustained gold rally, one trader told Reuters that following such a big selloff, “some speculators are covering their shorts after the worse-than-expected non-farm number. I think that’s all it is at this point.” This as Hong Kong fund manager William Kaye describes how a short squeeze in gold, could unfold.

Trading in gold futures on Friday was more than double the 100-day average, according to data compiled by Bloomberg, which also points out that “Gold’s 14-day relative-strength index in the previous five sessions was below 30, a level that suggests to some traders who study technical charts that prices may be poised to rebound. The gauge climbed to 36 today.”

And Coin News reports that weekly sales of gold coins “were the highest since mid-January when new 2014-dated American Gold Eagle and American Gold Buffalo coins ignited buying. Silver coin sales were on a tear until mid-week when the U.S. Mint announced that its Silver Eagles sold out.”

See also:

Jesse’s Café Américain:  Gold and silver charts – Short squeeze

GoldMoney/Reuters:  Weekly market report – Precious metals hit by strong dollar; COT Report – Speculators push long U.S. dollar position to largest since 2008

Bullion Star/SilverSeek:  Lower silver prices spark unprecedented demand; Silver and powerful forces

Bloomberg:  China gold buying means price floor to Standard Chartered

Koos Jansen/Ron Paul:  Beijing financial forum – New global financial order is essential; Ron Paul – Watch out when people start to distrust our money

The Diplomat/Zero Hedge:  Time to take the Russia-China axis seriously; Russia nears completion of second “holy grail” gas deal with China

Toronto Star/AP:  Ukraine says hundreds of rebels killed as truce crumbles; Accuses Russia of sending dozens of tanks

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

Silver Slump Gives Ratio Bump

Posted by on October 31st 2014 in CFTC, China, Euro, Federal Reserve, General Economy, Gold, Interest Rates, Monetary Policy, Russia, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

SilverSlumpsRatioBumpsFollowing better-than-expected U.S. GDP growth of 3.5% for the third quarter, spot gold and silver fell 1% and 3.4% respectively on Thursday, and futures were hit even harder, tumbling 2.1% and 4.9%, on what was “a rough day for the precious metals, with the financial powers-that-be trying to prove that the end of QE III need have no negative effects on their financial engineering of The Recovery™.”

With silver hitting a 56-month low, the gold/silver ratio is now pushing 73, a 66-month high, but if an in-depth chart analysis published by SilverSeek — “Time Running Out on Silver Bear” — proves correct, that could change in weeks, not months.  It predicts that November is “the time for the present silver bear market to end, and for silver to begin its next leg higher within its primary bull market.”

See also:

Zero Hedge/Businessweek:  Broken stocks, battered bullion, and bruised crude; Did the U.S. just ‘steal’ GDP growth from the fourth quarter?

James Grant/Eric Parnell:  Complexity – The hidden cost of central bank actions; A once-in-a-generation change for stocks

Bullion Star/Mineweb:  China stocks up on oil & gold while prices are low; China’s ‘new normal’ still global metals demand driver

Bloomberg/Mining.com: Russia buys most gold for reserves since 1998 financial crisis; Pushes forward plans to mine the moon

CNBC/Grant Williams:  Currency traders eye Swiss vote on gold holdings

GoldCore:  U.S. Mint gold coin sales near 60,000 ounces in October – Swiss gold initiative leading to increase in demand?

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