Archive for the ‘U.S. Congress’ 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!

MetalsGainOnStocksPain

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

Investors ‘Returning to Gold to Take Cover’

Posted by on December 11th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, India, Interest Rates, Middle East, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

TakingCoverWithGold“As a rout in energy prices spreads to global equities, investors are returning to gold to take cover,” begins a Bloomberg article about how assets in GLD, the world’s largest gold-backed ETF, rose on Wednesday “at the fastest pace since July. The holdings are up almost 1 percent in December, snapping four straight months of losses.” Spot gold and silver did however end marginally lower on Thursday, falling about one-fifth of a percent following what was described as an “upbeat” retail-sales report But following that release, notes Reuters, “data showed the net worth of U.S. households fell in the third quarter for the first time in three years, hit by a fall in the value of their stock holdings and rising debts, giving mixed signals on the outlook for consumer spending.”

See also:

Zero Hedge/TF Metals Report:  CME implements gold, precious metals circuit breakers up to $400 wide; a.k.a. trading collars

The Gold Report/GoldCore: Elliott Wave charts point to shocking countertrend for gold; Marc Faber favors commodity stocks in Asia … and gold, in interview with Barron’s

Sprott Money/SRSrocco Report: China’s role in the global (paper) silver market; Current price of silver $50 based on the historic oil-silver ratio

Confounded Interest/Moneynews: Fed bubble bursts in $550 billion of energy debt

Matt Taibbi: The 10 craziest things in the Senate report on torture

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!

GoldvsDebt

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

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!

ClockIsTicking

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.”

SwissGoldCoverageRampsUp

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

Metals Gain as China, Netherlands Surprise

Posted by on November 22nd 2014 in CFTC, CME Group, ECB, Euro, Federal Reserve, General Economy, Gold, Goldman Sachs, Interest Rates, JPMorgan, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

ChinaRateCutSuprise

Spot silver gained 1.5% on Friday and gold added 0.9% “after a surprise rate cut by China fueled expectations demand could rise in the world’s biggest consumer” of gold, reports Reuters. “Any measures that accelerate the spending power of the Chinese public are bound to be positive for gold,” said a Mitsubishi analyst, suggesting that it could lead Chinese consumers to “buy more jewelry and investment products.”

DutchGoldSurpriseAlso, or perhaps primarily, boosting gold on Friday was news that the Dutch central bank has repatriated 122 tonnes of gold from the New York Fed’s vaults, with a spokesman for the bank saying that “It is no longer wise to keep half of our gold in one part of the world. Maybe it was desirable during the Cold War, but not now.”

“What’s particularly interesting about this surprise,” according to USA Gold, “is that little-ol’ Holland somehow managed to jump in front of Germany in extracting their gold from the Fed. You may recall that Germany requested back in 2013 that 300 tonnes of gold be repatriated. After nearly two-years, a disturbingly small percentage has actually been returned.”

See also:

Bloomberg/WSJ: Gold, silver rise to three-week highs on China interest-rate cut; Bring on the currency wars

Dan Norcini/Telegraph: China news, ECB roil commodity markets; Mario Draghi – ECB must now raise inflation ‘as fast as possible’

GoldMoney/CNBC: Market report – Better tone for volatile gold; Central banks – The new gold bugs?

Bullion Star:  Switzerland net exports 100 tonnes of gold in October

Zero Hedge/GoldCore: Everything you need to know about the Swiss gold referendum; Swiss gold vote likely tighter than polls suggest

Bloomberg/Jesse’s Café Américain: Fed may limit Wall Street role in commodities; Sen. Carl Levin – Fed enabled banks to elbow way into commodities, manipulate prices

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

Metals Take Break From Fall; G/S Ratio Near 5-Year High

Posted by on November 7th 2014 in CFTC, Federal Reserve, General Economy, Gold, Interest Rates, JPMorgan, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

G:sRatio11:14

Spot silver and gold recovered slightly on Thursday, adding a few-tenths of a percent, after Wednesday’s rout “tempted some buyers back to the market and as the dollar dipped on profit-taking,” reports Reuters.  It quotes one gold trader as observing:  “We’re holding steady today but nobody wants to make a big move ahead of the employment numbers tomorrow morning. If there’s a positive number, they (the bears) may take a run at it.” This as Bloomberg reports that the gold/silver ratio hit a five-year high earlier this week, topping 76 before ending at 74.1 on Thursday (see above chart). And in a separate article, on American Silver Eagles selling out, Bloomberg notes that assets in ETFs and other exchange-traded products “backed by silver rose to a record last month, defying a slump in gold ETP holdings to the smallest since 2009.”

See also:

GoldPrice.org/Mineweb:  Silver and gold are severely oversold; Will they get worse before they get better?

Zero Hedge:  Physical gold shortage worst in over a decade – Gold forward rate most negative since 2001

Barron’s/GoldSeek:  Will the Swiss referendum turn around gold?

Pragmatic Capitalism/Sprott Money:  What if the Fed isn’t the wizard behind the economic curtain?; Federal Reserve counterfeiting approaches 100%

NY Post/Of Two Minds:  GOP should start fixing the Fed; If you think it matters which party controls the Senate, answer these questions

NY Times/Rolling Stone: Matt Taibbi spotlights a JPMorgan whistleblower; The $9 billion witness – Meet JPMorgan Chase’s worst nightmare

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

Gold/Silver Ratio Tops 70

Posted by on October 1st 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | 1 comment

Gold:SilverRatioTops70

With spot silver slumping 2.5% on Tuesday, and silver futures diving 19% for the quarter, the biggest drop since mid-2013, the falling price is bringing out the coin buyers.  The 4.1 million 2014 American Silver Eagles sold in September more than doubled August’s total, and was the “highest since sales of 5,354,000 in March,” reports Coin News.  “Silver Eagle sales for the year are at 32,251,000, the second quickest pace in the coin’s 29-year history.”

An Economic Times article deems silver to be a “better investment bet than gold,” given silver’s sharper fall in price, compared to gold’s, along with silver’s rising industrial demand.  It also points out that the gold/silver ratio, which hit 71.2 on Tuesday, is “much above the 10-year average of 57.75 times. So the risk-reward ratio is more in favor of silver.”

See also:

Numismatic News:  Patrick Heller – Silver gets cheaper relative to gold

Reuters/Dan Norcini:  Gold posts first quarterly loss this year as dollar soars; EuroZone inflation data hammers the euro

SafeHaven: Does surging demand for gold and silver coins signal a bottom?

Bullion Star/USA Gold:  China aims to surpass U.S. in official gold reserves; Why China thinks gold is the buy of the century

Zero Hedge:  Why is China hoarding gold? Alan Greenspan explains

BBC/Reuters:  Hong Kong democracy protesters defiant on National Day; Protests approach potential National Day flashpoint

Wall Street on Parade/Washington Times:  Carmen Segarra – Wall Street’s Spy vs. Spy; Sen. Elizabeth Warren calls for corruption investigation of Federal Reserve

A Yuanderful New Era for Gold?

Posted by 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!

YaGottaYuander

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.”

See also:

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

Dollar Seen Losing Altitude

Posted by 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!

DollarThrottlesBack

“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.”

See also:

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

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