Archive for the ‘U.S. Congress’ Category

Gold Market Analyst: ‘U.S. is Out Of the Game Right Now’

Posted by 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!

USOutOfGoldGame

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.

See also:

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

Gooaaald!

Posted by 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!

GoaaaldGold 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.”

See also:

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/MinewebGold 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

 

Metals React Positively to ECB Going Negative

Posted by 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

LessThanZeroGold 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.”

See also:

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

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 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

Metals Gain on Yellen; Falling Treasury Yields Seen Boosting Gold

Posted by 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!

Gold:TreasuryYields

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.”

See also:

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

Frontline – “To Catch a Trader”

Posted by on January 8th 2014 in Quants, Short Sellers, U.S. Congress, Wall Street | Be the first to comment!

ToCatchATrader

The producers of Frontline‘s look at insider trading prosecutions, which premiered Tuesday evening, took questions in an online chat.

Metals Drop on Profit Taking, Taper Talk

Posted by 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!

GoldBearTurnsBullish

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.”

See also:

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

Obama Nominates New CFTC Head

Posted by 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!

CFTCmassad

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.”

 

Top 10 Reasons to Buy Gold and Silver

Posted by on November 6th 2013 in China, Federal Reserve, General Economy, Gold, Monetary Policy, Silver, U.S. Congress, Wall Street | Be the first to comment!

Mike Maloney Counts ‘Em Down….

MaloneyGold&Silver

Fed Maintains Stimulus; Taper Speculation Begins Anew

Posted by on October 30th 2013 in China, Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

WillTheFedEverTaper

In a statement released following its two-day FOMC meeting, the Federal Reserve “maintained its massive bond-buying stimulus program at the current level, citing still-high unemployment, a slowdown in the housing market and an economy held back by fiscal policies,” reports the Los Angeles Times.  But following the announcement stocks, bonds and gold fell, although Zero Hedge notes that “Gold and silver knee-jerked lower but bounced back somewhat.”

A Reuters article fingers “a slightly less-dovish-than-expected statement” for the drop, quoting a Wells Fargo portfolio strategist as saying that “The Fed was dismissive about how higher mortgage rates are affecting the housing recovery. They also removed the statement about their concerns regarding a deterioration in financial conditions. This sets the stage for an easy start to taper in December.”

The Wall Street Journal reports that “the Fed isn’t taking a December adjustment to the bond-buying program off the table. But that comes with the strong caveat that it depends on whether the economy is living up to its expectations.”

News & Views

Dan Norcini/Barron’sTea leaf reading time again; As Fed days go, a snoozer

WSJ/SGT Report/Reuters:  Fed balance sheet not seen returning to normal until at least 2019; David Morgan: If Bernanke was a helicopter, Yellen will be the Concorde!; Yellen feared housing bust but did not raise public alarm

Washington’s Blog:  Is the dollar really losing its reserve currency status … If so, what will replace it?

Reuters/Bloomberg:  Chinese gold prices at a discount on credit crunch fears; Worst cash crunch since June signal of economic rebound

MarketWatchWhat will China buy? Beijing goes shopping in the U.S.

Reuters/Gulf News:  Gold premiums stay at peak ahead of Indian festivals; UAE gold sellers call on India film stars for Diwali

Bloomberg:  Dubai’s DGCX to list spot gold contract as regional demand jumps

The Golden Truth/GATA:  The Wall Street Journal published blatant lies about the gold market; Chris Powell: Gold price suppression — why, how, and how long?

BullionVaultSilver use – Changes and outlook

Zero Hedge:  Citi warns of “disconcerting disconnects” In U.S. markets; It’s official – U.S. is ‘dirtiest’ dirty shirt in global macro

Bloomberg/Legatum Institute::  U.S. drops out of top 20 in annual economic prosperity index

Reuters/StarTribune:  In new U.S. budget talks, Republican proposal has flipped the script; What if the GOP raised taxes and nobody noticed—not even the GOP?

Over$2.5BillionSold

Ted Butler: A ‘Very Big Change’ in Silver Futures

Posted by on October 29th 2013 in CFTC, China, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Ted Butler, U.S. Congress, Wall Street | Be the first to comment!

ButlerBigSilverFuturesChange

In an excerpt from his newsletter to subscribers, Ted Butler points out that “the concentrated long position of the four largest Comex silver traders is higher and closer in size to the concentrated short position of the four biggest shorts (obviously different traders) than any time in my memory. I’m not sure what this means, but I am always sensitive to anomalies and changes in Comex silver as it might signal an end to the manipulation. The four big longs in Comex silver hold 29,040 contracts long and the 4 big short traders are short 35,378 contracts. Never have these respective concentrated positions been so evenly matched.”

Butler goes on to note that historically, “the big 4 shorts’ position was anywhere from 2 to 4 times larger than what the 4 big longs held in Comex silver. To see them this evenly matched is a very big change, along the lines of seeing JPMorgan holding an unprecedented long market corner in Comex gold –  something way out of the ordinary. It would seem the big 4 longs in silver are in the commercial swap dealers category (with perhaps a managed money long thrown in). One thing that comes to mind is that either someone big may be taking JPMorgan on, or that JPMorgan is the buyer in a different reporting name. Is there anyone remaining who doesn’t assume the worst when JPMorgan is involved?”

News & Views

MarketWatch/USA Gold:  Gold falls 0.5%, with Fed ‘distraction’ for bull, bears; silver off 0.2%; Gold pulls-back modestly, but impetus remains to upside

Zero Hedge/Mineweb:  Gold tests 5-week highs – Citigroup:  Gold and silver should continue pushing higher; David Levenstein – Gold prices to stay volatile despite beginnings of new positive trend

Gold Silver Worlds/Jesse’s Café AméricainPlaceholder gold vs. physical gold – Spot the massive disparity; Size of gold futures & OTC market vs. physical market for gold

CNBC/Roll Call: Yellen to be more dovish than ‘Helicopter Ben’ – CNBC survey; Sen. Lindsey Graham threatens nominations logjam over Benghazi

Zero Hedge:  Head of world’s largest asset manager says taper “imperative” to end “Bubble-like markets”; CNBC’s Santelli stunned as Nobel winner Fama explains Fed unwind “is no big deal”

Hard Assets Investor/GoldSwitzerland/Daily ReckoningInflation, not QE, will be what ignites next big rally in gold prices; Inflation attacks the Dollar Menu

Sovereign Man:  Congress to eliminate debt by not counting it anymore…; Treasury’s deceit exposed by this ballsy government official

Telegraph:  BIS sees risk of 1998-style Asian crisis as Chinese dollar debt soars; JP Morgan sees ‘most extreme excess‘ of global liquidity ever

Reuters/Forbes/Matt Taibbi:  JPMorgan’s $13 billion deal hits stumbling blocks – sources; The Madoff chickens are coming home to roost at JPMorgan Chase

AFP/IBT:  Bankers afraid to leave Switzerland amid U.S. tax crackdown;  The Edward Snowden of the banking world

WSJ/APWhose side is your broker on?; Deadbeat gamblers as economic indicator

Gold&SilverExpert