Archive for the ‘Russia’ Category

Paper Gains Slow; Bullion Sales Grow

Posted by on April 17th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, JPMorgan, Media, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

PaperSlowsBullionGrows

Gold and silver futures added a fraction of a percent on Wednesday, with gold benefiting from “some mild short covering and bargain hunting,” according to one analyst cited by Coin News, which also reports “another day of wide bullion gains,” based on numbers from the U.S. Mint, “adding to already strong figures with sales so far this week at 13,500 ounces in gold coins and 1,122,000 ounces in silver coins. Those top last week sales of 9,000 ounces in gold coins and 1,050,500 ounces in silver coins.”

Dan Norcini sees gold “being batted back and forth between two opposing forces at the moment. The negative force continues to be the slowing Chinese economy with traders fearing a slackening of demand from that key consumer. The positive is escalating tensions in the eastern part of Ukraine.” Bloomberg quotes one commodities broker as saying that “As long as there’s uncertainty in Russia, having some exposure to gold makes sense. With the selloff yesterday, it seems like cheaper insurance today.”

See also:

Tim Iacono/MinewebReuters omits the grey areas about China gold demand;  China gold blogger Jansen sticks by demand figures

WSJ:  India continues to bring home the gold despite import restrictions

SilverSeek:  David Morgan interview on silver market, silver price manipulation & the coming global monetary reset

Michael Pento/Wall Street on Parade:  Fed rigs markets, not the Flash Boys; Insiders tell all: Both the stock market & the SEC are rigged

Zero Hedge:  Atlanta Fed asks “Where are the jobs“; Dallas Fed’s Fisher admits, “Fed policies have made the rich much richer

Metals Drop as Investors Shrug Off Ukraine

Posted by on April 16th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

UkraineWeHardlyKnewYee

After being “monkey-hammered early on,” gold and silver “limped back higher” to close down 1.8% and 2% respectively on Tuesday, despite a ratcheting up of Ukraine tensions. Gold was “hit by profit-taking as the rally to $1,330 on Fed minutes appeared overdone,” according to one precious metals trader, who added that “The break below 200-day moving average and $1,300 level also triggered tons of sell-stops.” Another factor weighing on gold was said to be “speculation that a gain in U.S. consumer prices will give the Federal Reserve more leeway to reduce monetary stimulus.”

And citing a World Gold Council report on “China’s gold market,” USA Gold points out that also on Tuesday, “the market was worried by the WGC’s opinion that Chinese demand in 2014 might fall short of the “exceptional” demand seen in 2013. The WGC expects 2014 to be ‘a year of consolidation.’ While speculators might view a protracted period of consolidation as a reason to look for yield elsewhere, most buyers of physical gold [and silver] are not speculators. They buy gold for the purpose of long-term wealth preservation. In that frame of reference, steady or even lower prices are a gift, allowing one to accumulate gold weight without chasing ever-rising prices.”

See also:

Dan Norcini/Zero Hedge:  World Gold Council report pressuring gold; Gold futures halted again on latest furious slamdown

Tim Iacono/GoldSeek:  Gold sell-off reminiscent of a year ago

BullionVault/Mineweb:  Silver prices “ready to break out” as futures betting jumps to pre-crash level; USGS – U.S. mined silver output continues to fall

CNBC:  Can gold confound the markets and hit $1,400?

Steve St. Angelo/Bloomberg:  Goldman Sachs is highly motivated to low-ball the price of gold

 

Broker: Gold as Safe Haven Now ‘More than Ever’

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

SafetyFirst

As stocks snapped back on Monday, gold and silver added a fraction of a percent, with gold hitting a three-week high, reports Reuters. It cites an increase in gold’s safe-haven appeal, which it attributes to “growing violence between pro-Russian separatists and Ukrainian government forces, and news that a Russian fighter aircraft made repeated low-altitude, close-range passes near a U.S. ship in the Black Sea over the weekend.” The article also quotes a commodities broker who advises that “the need to have some gold in investment portfolios for safety now is more than ever. A lot of people don’t necessarily trust the stock market at the moment.”

See also:

USA Gold:  Gold gains on geopolitical tensions, threats of ECB policy reaction to strong euro

Financial Times/Wall Street Journal:  ECB policymakers plot QE road map; Central bankers to world – Take our currencies, please

SilverSeek/GATASilver’s ultimate rally – When paper assets collapse; Silver is in backwardation and Comex prices are misleading, James Turk tells KWN

Bloomberg:  CME Group sued on claims high-frequency traders bought access

LA Times/Pulitzer.orgWashington Post, Guardian win Pulitzers for NSA-spying revelations; Complete list of winners, with links to the original articles

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

Metals Gain as Dollar Drops, Ukraine Tensions Rise

Posted by on April 9th 2014 in China, Federal Reserve, General Economy, Gold, Media, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

RenewedUkraineTensions

Gold and silver futures both added 0.8% on Tuesday to close above $1.300 and $20 an ounce respectively, with the gains attributed to a lower dollar and renewed tensions between the U.S. and Russia over Ukraine.  “The unrest in the Ukraine and the escalating rhetoric from the U.S. is creating fear of an armed conflict, so safe-haven demand is definitely driving up gold prices today,” according to one analyst quoted by Reuters, which notes that gold was “also underpinned by official-sector buying after Iraq’s central bank said it might buy more gold in the next few months, having bought 60 tonnes over the past two.”

See also:

Jesse’s Café Américain:  Gold and silver charts – Metals take back their levels

Bloomberg:  Hedge funds get gold timing wrong on rebound; Interview with Jim Rickards – Should investors prepare for a dollar doomsday?

SilverSeek:  Monetary collapse and silver’s not so orderly rise

The Economist/David Stockman: Central banks will be financing governments on a permanent basis; The ugly truth behind “jobs Friday

Mineweb/WSJ:  Gold manipulation – ex US Treasury top gun tells us how and why; Tocqueville Gold Fund says London probe could scare off institutional investors

Matt Taibbi interviewed on “The Daily Show,” and on NPR discussing his new book – “The Divide”

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

 

Gold: 6 Weeks vs. 6 Years

Posted by on March 28th 2014 in China, Federal Reserve, General Economy, Gold, India, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

TheLongGame

With gold and silver both off a fraction of a percent on Thursday, and gold closing below $1,300 for the first time in six weeks, MarketWatch reports that gold’s drop was attributed to modest GDP growth and expectations that U.S. interest rates could rise sooner than expected, according to Sprott’s Charles Oliver.  But he’s also quoted as speculating that gold “could reach $5,000 during this decade as deficits and rising debts, exacerbated by demographic issues, are here to stay — and money printing and higher gold demand along with them.”

See also:

News Ledge/DanNorcini:  Gold and silver prices lose key levels on stronger dollar

SafeHaven:  Welcome to the Currency War, Part 14: Russia, China, India bypass the petrodollar

In Gold We Trust:  A first glance at U.S. official gold reserves audits

Citywire/BloombergGold bullion the only global meltdown safeguard, says asset allocator; Singapore’s SGX is said to consider plan for physical gold trading

Mining.com/APGold rush in Japan over impending tax rise; Drought spurs mini-gold rush in Sierras

Naked Capitalism/Barry Ritholz:  How banks fleece heirs on reverse mortgages; Attention suckers – Please send us your money

The Week:  Why America lags the rest of the developed world in retirement security

Gold Off On Fed, Dollar, but China Seen Supporting

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

ChinaGoldImports2:14

Futures in gold and silver were off 0.6% and 1% respectively following positive U.S. economic news that “boosted speculation the Federal Reserve will further pare stimulus,” reports Bloomberg, quoting one market analyst as saying that “The durable goods number was stronger than expected, and that’s weighing on the market.  Further ideas that the Fed will move at a quicker pace toward tightening continue to be an overhang factor.” That and talk that “the ECB was moving in the direction of its own version of quantitative easing,” was seen as “enough to pull the rug out from underneath those buying gold out of any dollar weakness concerns.”

But following Tuesday’s news of a February surge in China’s gold imports from Hong Kong, after China allowed more banks to import gold, analysts at Commerzbank are upbeat about Chinese demand supporting gold, writing in a note: “Were China to maintain this tempo for the remainder of the year, last year’s record level (1,158 tons) could be achieved. China is thus likely to have contributed to the increase in the gold price in February — when gold rose by 6.6% — and will in our opinion remain an important crutch for the gold price as the year progresses.” And speculating on how much gold China actually does import, Jim Rickards explains why “even the best estimates may be too low.”

See also:

USA Gold:  April Fools’ drop dead date for the Volcker Rule – what it might mean for gold

Mineweb:   Silver cautiously waiting for gold to move higher; Total gold holdings in stark contrast to past decades and should change – WGC

SilverSeek/BullionVault:  Should I bet the house on silver?; Gold price vs. “flattening” yield curve

GoldCore:  Russia raises gold holdings by 7.2 tonnes to over 1,040 tonnes In February

NPR – Fresh Air/Reuters: How Crimea’s annexation plays to Russians’ Soviet nostalgia

Metals Inch Up; Iraq Goes For Gold

Posted by on March 26th 2014 in China, General Economy, Gold, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

IraqGoldBuy

Spot gold and silver ended slightly higher on Tuesday as “analysts said that technical buying after a bullish ‘golden cross’ chart pattern provided underpinnings for gold,” reports Reuters, but the gains were seen as limited by Philadelphia Fed President Charles Plosser saying that “he believes the Fed should aim to raise short-term rates to 3 percent by the end of 2015 and 4 percent by the end of 2016.”

This as it’s reported that Iraq bought 36 tonnes of gold in March, which Bloomberg describes as the largest purchase by a country since Mexico bought 78.5 tonnes three years ago this month. “Demand from the likes of Iraq is important,” according to GoldCore’s Mark O’Byrne.  “It doesn’t necessarily mean it will lead to higher gold prices per se, but it definitely means that there’s an ongoing demand from central banks that is likely to continue.”

See also:

Tim Iacono:  Another curious (and pretty bullish) inflow for the gold ETF

Hard Assets Investor:  Gold market veteran – Hot money will come back into gold, sending prices to $1,900

Investing.comThe best geopolitical hedge? Gold and silver

Bloomberg/Livemint:  China’s gold imports from Hong Kong increase on import quotas

Zero Hedge/FortuneTwo shifting narrativesChina and the Fed; Jeremy Grantham: The Fed is killing the recovery

Gold Silver Worlds:  Will inflation make a comeback in 2014 when the consensus worries about deflation?

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