Posted by Investment Rarities on September 20th 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, India, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!
Following Thursday’s launch of the Shanghai Gold Exchange‘s trading of contracts in the city’s free-trade zone, China’s first exchange completely open to foreign investors, Reuters reports that “A successful take-up of the exchange could see gold priced and paid for in yuan rather than the U.S. dollar, challenging the traditional dominance of London and New York in trading. While physical demand provides underlying support for gold, prices are largely driven by speculative trade. China’s push for an international physical exchange means physical demand could have a stronger influence.” But BullionVault‘s Adrian Ash makes the case that “China’s inability to export gold bullion puts a big block on it affecting world prices.”
Bloomberg: Gold falls on equity rally, silver drops to four-year low; Dollar has longest win streak since 1967 on divergence
GoldSeek/Mineweb: Gold and silver fall more than 1% and 4% on the week; Julian Phillips – Silver at ‘bargain levels‘
Gold Silver Worlds: Gold and silver prices drop to critical Fibonacci levels
Zero Hedge: Fed’s Fisher admits “Fed has levitated markets“, warns of “signs of excess”; Quantitative proof the Fed is destroying the middle class
Fiscal Times: Instead of QE, the Fed could have given $56,000 to every household in America
Reuters: U.S. House passes Fed audit bill, but measure seen doomed in Senate; Angry with Washington, 1 in 4 Americans open to secession
The Wire: Congress heads home after some eight days in session between late-July and mid-November
Posted by Investment Rarities on August 28th 2014 in CFTC, China, ECB, Federal Reserve, General Economy, Gold, Iraq, Middle East, Russia, Short Sellers, Silver, U.S. Congress, Ukraine, Wall Street | Be the first to comment!
“The numerous sources of geopolitical crisis are evidently preventing the gold price from slumping,” said Commerzbank’s head of research, after spot gold edged up 0.1% on Wednesday and silver added a couple ticks more to gain 0.3%. Gold’s gain was also attributed to a drop in the dollar, but there’s more to come, according to the chief economist at Saxo Bank: “Our major call is: short the US dollar index and long commodities … USD will weaken significantly from mid-Q3 into Q1-2015. The market remains overexposed to the dollar and U.S. equities relative to the norm. Furthermore, with mid-term elections on November 4 the coming budget talks will have a hard time producing the convincing and long-term results needed.”
USA Gold/BullionStar.com: The interest rate trap and what it means to the gold market; Chinese gold demand y-t-d, silver surprise
Foreign Affairs/Market Oracle: Just-published article recommends policy shift that is very bullish for gold
Gold Switzerland: Interviews with GoldMoney’s Alasdair Macleod and The Telegraph‘s Ambrose Evans-Pritchard
Financial Times/New York Times: Central bankers face ‘confidence bubble’; A new reason to question the official unemployment rate
Daily Reckoning: Steve Forbes interviews James Grant – Bubbles, bargains & everything in between
Posted by Investment Rarities on July 8th 2014 in CFTC, China, ECB, Federal Reserve, General Economy, Gold, India, Janet Yellen, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!
With gold and silver futures ending down a fraction of a percent on Monday, a Bloomberg report attributes gold’s drop to predictions by some banks that the Fed will raise interests earlier than previously assumed, from the first quarter of 2015 to the fourth quarter of this year. But dismissing the notion that an early rate increase would hurt gold, Bloomberg Industries’ Kenneth Hoffman said that “I think the U.S. is out of the game right now,” pointing to Asia as the epicenter of the market. Citing the Singapore Exchange’s introduction of gold trading in September, he says that he recently returned from Asia and with so many “traders moving into Singapore and Hong Kong and Shanghai, there’s a lot of excitement about gold in Asia.” In late May, Mineweb wrote about a presentation by Hoffman, who offered up statistics showing that China and India are consuming more gold than the world is mining.
Los Angeles Times/GoldSeek: Why interest rates may stay very low for a lot longer
GoldCore/Peak Prosperity: Europe seeks alternative to dollar dominance – 70-year shift; Mike Maloney – The dollar as we know it will be gone within 6 years
Confounded Interest/Reuters: Has the Federal Reserve destroyed market discipline for housing and the stock market?; House Republicans propose Fed reforms, set hearing
Zero Hedge: Life on planet Yellen; The stunner from today’s round table debate to “fix” the London Gold Fix
Arabian Money: Traders see gold & silver as best bets for H2 like coffee in H1; Gold and silver entering a win-win scenario for the hedge funds?
Got Gold Report: COMEX heavy commercial gold shorts not always a sign of a top; John Hathaway – Financial leverage now $100 trillion, nine ‘compelling’ gold charts
Posted by Investment Rarities on June 12th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!
Gold and silver futures inched up about a dollar and a penny respectively on Wednesday, reports Coin News, but still, it was gold’s third up day in a row and silver advanced for the seventh time in eight sessions. It cites a MarketWatch article in which one analyst is quoted as saying that “Gold futures have been acting as a decent hedge to the stock market all year and weakness in equities…is attracting some bids into the gold market,” while another sees the World Bank cutting its global growth forecast as “a bit bullish for the gold market as it hints the world’s major central banks can keep their easy-money policies in place at least a while longer.” But Sharps Pixley’s Ross Norman suggests that traders are pretty much checked out, as their “attention seems to be shifting from the latest batch of U.S. data — to the soccer World Cup in the absence of major drivers.”
IFA/Bloomberg: Dow pulls back from record as World Bank cuts forecasts; Fed prepares to maintain record balance sheet for years
Reuters: Shrouding China’s gold trade, more imports go under radar
Steve St. Angelo/Arabian Money: What was the primary miners break-even silver price in Q1 2014?; Silver hovers tantalizingly close to Richard Russell’s take-off price of $19.25
am New York/Mineweb: Gold ATM in Midtown, because why not; Senate Majority Leader Harry Reid sells home to make way for Nevada gold mine
PEU Report/Vice: Clinton’s went from millionaires to PEU’s; Tim Geithner and the con-artist wing of the Democratic Party
Posted by Investment Rarities on June 6th 2014 in CFTC, China, ECB, Federal Reserve, GATA, General Economy, Gold, Monetary Policy, Quants, Short Sellers, Timothy Massad, U.S. Congress, Wall Street | 1 comment
Gold and silver futures gained 0.7% and 1.6% respectively on Thursday, after the the ECB cut interest rates from 0.25% to 0.15%, and dropped the rate on overnight deposits to negative 0.1%, which was described as an “historic step” that “signals strange economic times.” But the moves were also seen as a “disappointment” for not going far enough, with the euro rebounding to hit a ten-day high. And according to a Bloomberg report, the ECB’s action “probably won’t quell calls for more radical measures such as quantitative easing to stop the euro area from sliding into deflation.”
And while gold’s gains were said to be “coming mainly from short covering and not from a huge throng of eager new buyers,” it was also suggested that gold and silver “took a hit the past couple of days after option expiration to dampen any rally possibilities over what should surely be a big positive for the precious metals.” Gold Newsletter‘ editor Brien Lunden agrees, telling MarketWatch that “since gold responds over time to increases in the supply of fiat currency…. Increasing amounts of euros, as well as dollars, yen and other currencies, will raise the relative value of ‘things’ — and especially gold.”
GoldSeek/Mineweb: When money printing runs wild; Despite gold’s fall, fundamentals suggesting rebound – but when?
Dow Jones/Bloomberg: Two more declare interest in overseeing London silver fix; Silver electronic auction favored as replacement for fix
AP/Law 360: Senate confirms Timothy Massad to head CFTC
Wall Street on Parade/CNBC: Was that really a public meeting on high frequency trading?; Here are the 24 stocks high-speed traders love
WSJ: Bill Gross – I don’t own a cellphone
Posted by Investment Rarities 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!
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.”
TF Metals Report/IRD: Putin plays a golden card; The world slowly waves “good-bye” to the petrodollar
Wall St. Cheat Sheet/Invezz: Here’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
Posted by Investment Rarities 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!
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.”
Barron’s: Gold 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
Posted by Investment Rarities on February 12th 2014 in China, Federal Reserve, General Economy, Gold, India, Janet Yellen, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!
Spot gold and silver were up 1.4% and 0.9% respectively on Tuesday following Fed Chair Janet Yellen’s testimony before the U.S. House Financial Services Committee, in which she said “the recovery in the labor market is far from complete.” According to one strategist quoted by Bloomberg, “Yellen’s acknowledgement that more needs to be done to restore the labor market is helping gold. While she said that tapering will continue, she made it clear that it’s not on any pre-set course.”
But Dan Norcini writes that while traders “are convinced that the doves are going to dominate the Fed…. from my perspective the reason gold continues to move higher is because longer-term rates continue moving lower. You might recall that from the beginning of November last year through the end of December, the price of gold fell from $1350 all the way to below $1200. It was no coincidence that as this was taking place, the yield on the Ten Year ran from near 2.45% all the way to above 3.00%. As yields have moved lower for the Ten Year, especially due in great part to the fears surrounding the emerging market concerns, gold has responded by moving higher.”
Mineweb: Gold may already be heading for the next up cycle; The Chinese gold consumption conundrum – where’s it all going?
Financial Times: China’s 500-tonne gold gap fuels talk of stockpiling
Reuters/CNBC: India’s trade deficit narrows on 77% drop in gold imports; Is India ready to curb gold controls?
Seeking Alpha: Will silver continue to rally?
MarketWatch/Washington’s Blog: Scary 1929 stock market chart gains traction; Is history repeating … or throwing a head fake?
Washington Post/Washington Times: How John Boehner decided to give up on the debt limit fight; Conservative group calls for Boehner’s head
Posted by Investment Rarities on January 8th 2014 in Quants, Short Sellers, U.S. Congress, Wall Street | Be the first to comment!
The producers of Frontline‘s look at insider trading prosecutions, which premiered Tuesday evening, took questions in an online chat.
Posted by Investment Rarities on December 12th 2013 in CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, Janet Yellen, JPMorgan, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!
As a former gold bear turns bullish — see above interview — gold and silver ended down 2% and 3.9% respectively on Thursday. One explanation given was profit taking, while positive retail sales data and a likely U.S. budget deal were also seen increasing the prospects that the Fed will pull the taper trigger at next week’s FOMC meeting.
Bloomberg quotes one analyst as saying that “it looks plausible that gold eases back towards $1,220 as we move toward the Fed decision. However, looking at next year, we are not so overly bearish as interest rates will continue to be a record low and QE will continue for a while even if it will be gradually reduced.” This as MarketWatch‘s Matthwew Lynn argues that “QE and zero rates are going to be around for a lot longer than most investors have yet realized.”
Zero Hedge: The complete, unabridged confusion over the Fed’s [December|January|March] taper
SafeHaven/James Kunstler: ‘Taper’? Not yet; Timing is (not) everything
Mineweb: ‘Volcker Rule’ could hamstring big banks’ gold and silver trades
Dan Norcini/WSJ: Gold and silver decline yields a victim – Eric Sprott
Koos Jansen: China prepares for financial warfare
Posted by Investment Rarities on November 12th 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, JPMorgan, Short Sellers, Silver, U.S. Congress, Uncategorized, Wall Street | Be the first to comment!
President Obama announced on Tuesday that he’s nominating Timothy Massad to replace CFTC Chairman Gary Gensler, whose term ends in January. Massad currently heads the Treasury Department’s Office of Financial Stability (OFS), which oversees implementation of the Troubled Asset Relief Program (TARP). The nomination follows last week’s announcement by commissioner Bart Chilton that he’s resigning at the end of this year.
Former Sen. Ted Kaufman, an outspoken critic of the Obama Administration’s handling of the financial crisis, told Politico that “One of my concerns when Gensler said he was leaving is that his replacement would be someone like Tim Massad, who I think will not make sure we live up to the promises of Dodd-Frank with regard to the fact that derivatives will be transparent and that they’ll be regulated. Massad is much more in the Jacob Lew-Tim Geithner philosophy of regulation of the banks from everything I saw in the Senate and as chair of the congressional oversight of the TARP.”