Gold and What Moves it.
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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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ECB Gold reserves hit 479 billion euros

ECB Gold reserves hit 479 billion euros | Gold and What Moves it. | Scoop.it
Gold and gold receivables held by euro zone central banks rose in value by 45.5 billion euros to 479 billion euros after a quarterly revaluation.
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Australia slashes interest rate as slowdown in mining feeds fears | MINING.com

Australia slashes interest rate as slowdown in mining feeds fears | MINING.com | Gold and What Moves it. | Scoop.it

by Cecilia Jamasmie:

 

"In a move that caught more than one investor by surprise, Australia’s Reserve Bank (RBA) announced Tuesday it was cutting its interest rate, prompted by worries of a sluggish mining industry, falling commodity prices and concerns over China.

 

"The decision, aimed mainly at protecting Australia against the worldwide slowdown, offers nations that depend heavily on Chinese investors — such as Canada— a glimpse of what to expect in the event of an extended economic downturn in the Asian country. ..."

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Sprott Update: Do Western Central Banks Have Any Gold Left?

Sprott Update: Do Western Central Banks Have Any Gold Left? | Gold and What Moves it. | Scoop.it
By: Eric Sprott & David Baker

 

"Somewhere deep in the bowels of the world’s Western central banks lie vaults holding gargantuan piles of physical gold bars… or at least that’s what they all claim. The gold bars are part of their respective foreign currency reserves, which include all the usual fiat currencies like the dollar, the pound, the yen and the euro.

 

"Collectively, the governments/central banks of the United States, United Kingdom, Japan, Switzerland, Eurozone and the International Monetary Fund (IMF) are believed to hold an impressive 23,349 tonnes of gold in their respective reserves, representing more than $1.3 trillion at today’s gold price. Beyond the suggested tonnage, however, very little is actually known about the gold that makes up this massive stockpile. Western central banks disclose next to nothing about where it’s stored, in what form, or how much of the gold reserves are utilized for other purposes. We are assured that it’s all there, of course, but little effort has ever been made by the central banks to provide any details beyond the arbitrary references in their various financial reserve reports.

 

"Twelve years ago, few would have cared what central banks did with their gold. ..."

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Why You Should Be VERY Afraid of Inflation | ZeroHedge

"For the last 80 years or so, financial theory has held that inflation and deflation were mutually exclusive events. We've now seen that idea go up in smoke as deflation affects home prices and incomes in the US at the very same time that we experience inflation in energy and food prices courtesy of the Fed's insane money printing.

 

"Indeed, Ben Bernanke is a disciple of the belief that to battle deflation, one must inflate the financial system/ economy. Never mind that history has shown this to be total bunk (monetization has always inevitably led to higher inflation), Bernanke is an academic and has devoted his life's work to this misguided belief.

 

"As a result, the man with the greatest control over the value of the US Dollars you own is a man who is so hell-bent on proving his theories that he can and is completely ignoring hard evidence that refutes them. ..."

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Monty Python And The Holy Grail- The Black Knight Explains the battle in gold

LOL

 

Jim Sinclair makes a hilarious comparison:

 

"My Dear Friends,

 

"We are of course Good King Arthur. The Black Knight appropriately represents the gold banks. The bridge in this battle represents $1775, a number with no deep technical meaning before it was selected as the gold line in the sand by some unseen muktar.

 

"The following video explains what is happening and outlines the final resolution of the shorts versus the longs at $1775. ..."

 

Click over for the rest of his comments: http://www.jsmineset.com/2012/10/02/in-the-news-today-1325/ ;

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"Battle at the Bridge" in gold and silver « Jim Sinclair's Mineset

Here's an interesting email and response that Jim Sinclair posted to his website www.jsmineset.com

 

"Dear CIGA Jim,

 

"$1,775 Gold is significant. TPTB wants silver to trade at a 1/50 Ratio with Gold. $1,775 Gold/50 = $35.50. The Bankers desperately want to keep silver below $35.50 because there are many buy stops here, and also because JP Morgan’s silver derivatives book blows up if silver stays above $36 for 60 trading days.

 

"CISA AW

 

"CIGA AW,

 

"You make a good case, but I have never believed in ratios looking forward. I think looking back they do very well.

 

"That does not deny that you might very well have defined the reason why a point in the gold price with no real technical consideration on its own has become the line in the sand for the gold price to be fought over.

 

"This is certainly the "Battle at the Bridge."

 

"Very well done. Thank you, Jim"

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Vietnam banks frantic buying lifts Gold

Analysts said commercial banks are boosting their gold purchase to prepare for the November 25 deadline repayment of gold deposits.

 

"HANOI(BullionStreet): As the November 25 deadline of repayment on gold deposits approaches fast, commercial banks in Vietnam are boosting their gold purchases.

 

"The frantic buying by banks have taken the domestic prices to climb and further extend difference between domestic and global prices.

 

"As demand exceeded supply, local gold prices continued to rise yesterday to VND47.8 million per tael, roughly VND3 million higher than the world price according to the Vietcombank's rate which yesterday rose VND20 against the previous day to VND20,870 per dollar. ..."

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The cost of South African #platinum mine strikes: 8,000 jobs

The cost of South African #platinum mine strikes: 8,000 jobs | Gold and What Moves it. | Scoop.it

SBG analysts say as much as 8,000 jobs could be lost as miners reorganize amid strikes, adding pay increases will likely lead to material cost inflation which add further pressure.

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Global Factory Weakness Spreads as Debt Crisis Persists

Global Factory Weakness Spreads as Debt Crisis Persists | Gold and What Moves it. | Scoop.it

By Simone Meier and Michelle Jamrisko

 

"Manufacturing from Europe to China contracted in September as the euro region’s fiscal crisis eroded investor confidence and clouded global growth prospects.

 

"A gauge of manufacturing in the 17-nation euro region was at 46.1, above an initial estimate of 46 on Sept. 20, Markit Economics in London said today. A reading below 50 indicates contraction. A Chinese factory index was at 49.8 for September, a statistics bureau report showed. In the U.S., manufacturing unexpectedly returned to growth last month.

 

"Economies around the globe are cooling as European governments toughen spending cuts to restore investor confidence as the region’s economic slump deepens. Euro-area unemployment held at a record 11.4 percent in August and Japan’s Tankan index of large manufacturers’ confidence dropped to minus 3 for the past quarter, two reports showed today.

 

“Europe is still a big problem out there, you’re seeing weaker global growth in general,” said Scott Brown, chief economist at Raymond James Financial Inc. in St. Petersburg, Florida. “A lot of firms doing business in Europe are reporting weaker results, a lot more caution.  ...”

 

To me, debt continues to be the driving force of gold. And with the governments around the globe piling more debt onto the balance sheet gold will continue to rise.

 

hat tip http://economicsignsofthetimes.blogspot.com/2012/10/monday-roundup-10-01-12.html ;

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What Changes in the Gold Market? Who is Buying? | Julian D. W. Phillips | Safehaven.com

What Changes in the Gold Market? Who is Buying? | Julian D. W. Phillips | Safehaven.com | Gold and What Moves it. | Scoop.it
By: Julian D. W. Phillips | Tue, Oct 2, 20


"A look at the gold market over the last few months shows that the pattern of price movements has changed from the traditional patterns. If you take the time factor out of charts on the gold price, the pattern of behavior becomes simple. It is a strong rise followed by a narrow, short consolidation pattern before a further move forward. This is unlike the saw tooth pattern we are used to as buyers and sellers reassess price prospects constantly, giving rise to more extended consolidation patterns over longer periods.

 

"Until June of this year, the gold and silver prices appeared to be following the more traditional pattern that tended lower. Then between $1,530 and $1,550, the price turned and headed upwards. It was then that the day-to-day pattern changed. A closer look at the long consolidation period that sent the gold price from $1,930 to $1,530 over the last year and more shows a changing pattern of large movements followed by narrower consolidations holding round a central price that held for a long time.

 

"Quantity, Not Price


"What's clear is that there were buyers who came in on the fall and restrained those falls to a narrower trading range. These buyers did not simply say, "Buy at a certain price" but appeared to ask their dealers for offers of gold and probably large ones too. Then these buyers took all that was offered to them. Their interest lay in the quantity of gold and not the price to be paid. What sort of buyer would not be concerned at the price but only at the quantity? ..."

 

Click over for the rest of the interesting article: Traditional, Investors, India, China, and Central Bankers.

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If You Prop Up an Artificial Economy Long Enough, Does It Become Real?

If You Prop Up an Artificial Economy Long Enough, Does It Become Real? | Gold and What Moves it. | Scoop.it

Charles Hugh Smith writes:

 

"Does carefully nurturing a facade of health actually lead to health? No; all it does is perpetuate a destructive illusion.

 

"The policy of the Status Quo since 2008 boils down to this assumption: if we prop up an artificial economy long enough, it will magically become real. This is an extraordinary assumption: that the process of artifice will result in artifice becoming real.

 

"This is the equivalent of a dysfunctional family presenting an artificial facade of happiness to the external world and expecting that fraud to conjure up real happiness. We all know it doesn't work that way; rather, the dysfunctional family that expends its resources supporting a phony facade is living a lie that only increases its instability.

The U.S. economy is artificial in three important ways:

 

"1. The Federal Reserve has distorted the market for borrowing capital by reducing interest rates to zero. Those holding capital (savings) receive essentially zero interest income while favored borrowers (banks and large corporations) can pursue marginal-return speculations for free (when measured in real terms), creating systemic moral hazard of the most pernicious sort. ..."

 

Click through for the remaining two points and the rest of his post. Most always good stuff.

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Gold Hits Record High in Euros and it’s Setting Up for Another Rally

Gold Hits Record High in Euros and it’s Setting Up for Another Rally | Gold and What Moves it. | Scoop.it
BY Chris Vermeulen | October 02 2012 9:15 AM


The price of gold hit a record high this past week . . . in euro terms (at about 1380 euros). The record came after a number of actions by central banks around the world, trying to stimulate their respective economies. The actions, usually centered around money printing, once again had investors looking for refuge in gold.

 

Since the beginning of September, investors have bought about 75 tons of gold through exchange traded funds. Reuters says that gold ETFs, such as the largest gold ETF – the SPDR Gold Shares (NYSE: GLD), are on track for their biggest quarterly inflows in over a year, of 3.285 million ounces. Finally, according to UBS, investors have also raised their bullish bets on gold futures to the highest level in more than a year.

 

All the world’s major central banks took action recently including the Bank of Japan which launched a fresh round of monetary stimulus. The main action though was centered in Europe and the United States. The European Central Bank has promised to buy an unlimited quantity of eurobonds going forward. And the Federal Reserve announced its third round of monetary stimulus, QE3, that promises to buy $40 billion of mortgage-backed securities monthly on top of its ongoing Operation Twist program of buying long-dated Treasuries. ...

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Jesse's Café Américain: Gold Daily and Silver Weekly Charts - There and Back Again

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - There and Back Again | Gold and What Moves it. | Scoop.it

Jesse's Café Américain:

 

"Gold and silver had an early pop into tougher resistance, but then got hit hard later on in the morning almost to unchanged, and then managed to recover a little into the close. An intraday chart showing the sharp early morning rally is shown below.

 

"I had expected a much stiffer gut check on the longs, and we may still get it. I do not expect any breakout through resistance here to be easy.

 

"But if we get the breakout and stick it, and the bears panic, look for a swift run to the next line of defense where the big shorts will once again attempt to make a stand.

 

"Looking at the chart it seems pretty straightforward. There have been three major attempts to break through it, with this being the most recent, after the big blow off top.

 

"I think this resistance will be ..." click through for the rest of his analysis.

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Debt infection treatment: Recipe for US — RT

Debt infection treatment: Recipe for US — RT | Gold and What Moves it. | Scoop.it

"It’s necessary to focus first on real growth and some kind of austerity, not continuous rounds of money injections, that’s the formula for economic success the former US Cabinet Member Carlos Gutierrez explained to Business RT.

 

"Currently the country has the same debt level as one of the main troublemakers in Europe – Greece, according to Carlos Gutierrez who is currently a Vice Chairman of Citigroup's Institutional Clients Group.

 

“The US debt is $16tln, more than the economy can stand… and we haven’t done anything to cut it,” he says. In this situation some kind of austerity measures is absolutely necessary, Gutierrez added.

 

“It could be “phased austerity”, it doesn’t necessarily need to be one hit at the same time, but it has to come,” he said.

 

"Trying to revive the US economy by a straightforward patching of the budget gaps with massive amounts of money known as Quantitative Easing (QE) has recently become the №1 measure for the country’s authorities. First launched in the US in 2008 the latest third round of money printing is set to bring $40bln a month into a bond purchasing program, which will be coupled with an extremely low interest rate policy until at least mid-2015.

 

“The only reason for their resorting to massive amounts of liquidity is that the fiscal policy has not worked. So, they have to resort to the last resort, which is the Federal Reserve´s balance sheet,” as Carlos Gutierrez explained. "

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Gold Hits Record High in Euros and it’s Setting Up for Another Rally | The Daily Gold

Gold Hits Record High in Euros and it’s Setting Up for Another Rally | The Daily Gold | Gold and What Moves it. | Scoop.it

by Chris Vermeulen:

 

"The price of gold hit a record high this past week . . . in euro terms (at about 1380 euros). The record came after a number of actions by central banks around the world, trying to stimulate their respective economies. The actions, usually centered around money printing, once again had investors looking for refuge in gold.

 

"Since the beginning of September, investors have bought about 75 tons of gold through exchange traded funds. Reuters says that gold ETFs, such as the largest gold ETF – the SPDR Gold Shares (NYSE: GLD), are on track for their biggest quarterly inflows in over a year, of 3.285 million ounces. Finally, according to UBS, investors have also raised their bullish bets on gold futures to the highest level in more than a year.

 

"All the world’s major central banks took action recently including the Bank of Japan which launched a fresh round of monetary stimulus. The main action though was centered in Europe and the United States. The European Central Bank has promised to buy an unlimited quantity of eurobonds going forward. And the Federal Reserve announced its third round of monetary stimulus, QE3, that promises to buy $40 billion of mortgage-backed securities monthly on top of its ongoing Operation Twist program of buying long-dated Treasuries.

 

"Speaking about the monetary easing, Barclays precious metals analyst Suki Cooper put it this way to the Financial Times, “Gold finally found the catalyst it had been waiting for all year after the Fed announced open-ended quantitative easing.”

 

"Another reason for gold’s rise in euro terms, it must be noted, is the continuing fiscal turmoil in Europe itself, particularly in Spain. ..."

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South African Economy Paralyzed As Miner Strike Spreads To Truck Drivers | ZeroHedge

South African Economy Paralyzed As Miner Strike Spreads To Truck Drivers | ZeroHedge | Gold and What Moves it. | Scoop.it

posted on www.zerohedge.com by Tyler Durden:

 

"While we have been predicting that the South African miner strike, which started 2 months ago, and which despite (or rather due to) a one-off concession by Lonmin to hike worker pay by 22% is more entrenched now than ever, would spread to other countries, we failed to anticipate that it could also move to other domestic industries. Which is precisely what has happened as 20,000 truck drivers in the South African country decided to go on strike following the example of their miner brethren, demanding a 12% wage hike, and in the process crippling the South African economy, bringing virtually every industry to a halt. Why did they take the risk? Because they suddenly realized that they have all the leverage in a globalized society in which as we explained in "Trade-Off: A Study In Global Systemic Collapse", even a several hour complete trade paralysis can and likely will lead to total social de-evolution: an outcome which the status quo which determines wages paid to workers, would seek to avoid at all costs. Next up: the second global worker revolution. Marx would be proud. ..."

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Mikayla Stearns and Kate Reilly's curator insight, April 7, 2015 5:13 PM

ECONOMY: Another African group of workers have joined the South African miners in their strike: South African truck drivers. The miners demanded a 22% rise in wages, while the truck drivers ask for a 12% raise. This series of strikes, possibly spreading to other industries, has "crippled" the South African economy.

Mandy & Alexandria's curator insight, April 8, 2015 5:02 PM

This article is about Africa's economy. As of two months ago, Africa's truck drivers and miners have been on strike. The reason for this is that they want a 12% wage increase and it's bringing virtually every industry to a halt. If they dont do something about this now, Africa's economy, money, culture, and even life could be in danger, due to these demands and expectations. 

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Gold just shy of recent 11-month highs; ADP jobs report eyed

Gold just shy of recent 11-month highs; ADP jobs report eyed | Gold and What Moves it. | Scoop.it

LONDON (REUTERS) -

 

"Gold rose on Wednesday, with prices just shy of recent 11 month highs, as investors awaited a U.S. employment report for signs of recovery in the world's biggest economy.

 

"Spot gold was 0.3 percent higher at $1,778.50 an ounce by 1022 G MT. Trade was thin as China, the world's largest commodity consumer, remained on a week-long holiday.

 

"Prices hit $1,79.20 earlier this week, their highest since last November. U.S. gold futures for December delivery were up 0.3 percent at $1,781.00 per ounce.

 

"Gold has certainly got a bit of spring in its step at end of the summer break. There is good physical buying coming through and central bank buying is firm so the market will support it," said Ross Norman, chief executive at gold-broking firm Sharps Pixley. ..."

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Iran suspends Gold,Forex trade

Analysts said many Iranians who have lost faith in the rial are now contributing to its instability by rushing to convert their assets and properties to foreign currency and gold.

 

"TEHRAN(BullionStreet): Days after Iran's currency plummeted against the dollar and gold prices skyrockets in domestic markets, Iran on Wednesday suspended gold and foreign exchange trading.

 

"According to reports, Iranian exchanges are complaining about rapid price fluctuations saying they were not been able to get accurate and reliable information about the dollar rate.

 

"Iran's national currency, the rial, lost most of it's value against the dollar is now plunged to 35,500 rials a dollar.

 

"Gold prices also skyrocketed in the country as the price on a single Bahar Azadi coin is 10,320,000 rials Wednesday compared to 10,162,000 rials Tuesday. ..."

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daily #gold chart market analysis | Anna Coulling

daily #gold chart market analysis | Anna Coulling | Gold and What Moves it. | Scoop.it
Anna Coulling's financial forecasts and market analysis...

 

"... [Gold] price action over the last few days, with each daily bar closing with a higher low, giving a clear signal that any breakout from this range is likely to see gold move firmly higher in due course, and well beyond the $1800 per ounce region, last seen in February earlier this year. This bullish momentum has been given a further boost with strong buying volume now appearing on both the daily and the three day chart, and on the slower timeframe in particular, the selling volume in red, has now been replaced with buying volume, both yesterday and today.

 

"In addition, throughout this period, the three day trend has remained firmly bullish, and with the Hawkeye Heatmap also confirming this sentiment, we can now expect to see gold futures break out from this trading range in due course. Indeed in yesterday’s gold trading session this was further confirmed with a conservative Roadkill signal, suggesting that any breakout is now imminent. Once clear of the current price region, we can expect to see a further move higher in ..."

 

Click through for the rest of Anna's analysis.

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The Tremendous War In Gold Continues Near The $1,800 Level

The Tremendous War In Gold Continues Near The $1,800 Level | Gold and What Moves it. | Scoop.it

Stephen Leeb tells King World News:

 

“You want to hope gold does this consolidation because it’s giving you a chance to buy. If gold goes down a little bit, buy more. Hope it doesn’t go through $1,800 before you’ve accumulated all you possibly can.

 

"Yes central banks could be selling gold to try to control the price. The Chinese, who have been the biggest buyers of gold, are also the smartest buyers of gold. Would it surprise me to find out that the Chinese have some sell orders (in the paper market) in here? Not at all. They play the game.

 

"So there could be any number of reasons for entities to want to slow the advance of gold. The developed countries have a great many reasons to want to see gold struggle. As gold rises, it simply makes their currencies look even worse. .."

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Bolivia's silver mountain on the verge of collapse | MINING.com

Bolivia's silver mountain on the verge of collapse | MINING.com | Gold and What Moves it. | Scoop.it

by Cecilia Jamasmie:

 

"The Spanish may not have found El Dorado, the city of gold, but they certainly hit the jackpot when they landed in what is today the Bolivian city of Potosi, home to “Cerro Rico” or Rich Mountain, one of the largest silver deposit ever known in history.

 

"But after 467 years of mining, the 15,800-foot monument to the native slaves who mined the mountain's silver in brutal conditions is pitted throughout and in danger of a catastrophic collapse, engineers are warning.

 

"The cone-shaped peak that once bankrolled the Spanish empire currently hosts, according to an in-depth report from The Washington Post, as many as 16,000 miners at any given moment. ..."

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Bernanke Seeks Gains for Stocks in Push for Jobs: Economy

Bernanke Seeks Gains for Stocks in Push for Jobs: Economy | Gold and What Moves it. | Scoop.it

By Caroline Salas Gage and Jeff Kearns

 

"Chairman Ben S. Bernanke is increasingly aiming for gains in stock prices as the Federal Reserve reaches for new tools to spur the three-year recovery and reduce unemployment stuck above 8 percent.


"Bernanke, setting the stage for a third round of quantitative easing in an Aug. 31 speech in Jackson Hole, Wyoming, said the strategy works in part by boosting the prices of assets such as equities. In a speech yesterday in Indianapolis he said higher stock and home prices would provide further impetus to spending by businesses and households.

 

“It’s pretty clear that the stock market is the most important transmission mechanism of monetary policy right now,” said Peter Hooper, chief economist at Deutsche Bank AG in New York. “That’s where you’re getting most of the action in terms of lift to the economy. It’s the stock market that’s going to have to be carrying the load.”


"The Fed’s large-scale asset purchases will probably lift stocks by 3 percent over the two years following the Sept. 13 announcement of QE3 as low yields on government bonds push investors into risker assets, according to a Sept. 27 report by Deutsche Bank economists. They also estimate that QE will lift home prices by 2 percent over two years, assuming the Fed maintains purchases of Treasuries and mortgage debt through 2013. ..."

 

hat tip to www.drudgereport.com

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Watching one of the first showings of Part II of Atlas Shrugged was a surrealistic experience | Downsizing the Federal Government

Watching one of the first showings of Part II of Atlas Shrugged was a surrealistic experience | Downsizing the Federal Government | Gold and What Moves it. | Scoop.it

Rand O'Toole writes:

 

"Watching one of the first showings of Part II of Atlas Shrugged was a surrealistic experience for me after testifying earlier in the day (September 20) to the House Transportation Committee about Amtrak. In the movie, government officials piously argue that for the “greater good” they need to provide “guidance” to the nation’s capitalists—and the more guidance they give, the more capitalism fails, which naturally justifies even more guidance.

 

"In the hearing, I testified that Amtrak can’t be reformed because, as a government entity, it will still be controlled by politics, and the only solution was privatization. This led Peter DeFazio, my own former congressman (I moved to an adjacent district four years ago) to reem me out for not having faith in government.

 

“You don’t believe government should run our air traffic control? You don’t believe government should run our highways? You don’t believe government should subsidize the Port of Los Angeles?” Before I could fully answer each question, he would roll his eyes and interrupt me with incredulous moans. Fortunately, one of the other committee members rescued me and gave me a chance to answer.

 

"Ironically, one of DeFazio’s own questions should have been his undoing. Somehow, he didn’t think ..."

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Across Latin America, the quest for gold brings both riches and conflict | Gold Anti-Trust Action Committee

Across Latin America, the quest for gold brings both riches and conflict | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

By Tim Johnson
McClatchy Newspapers
via the Kansas City Star, Kansas City, Missouri
Monday, October 1, 2012

.

http://www.kansascity.com/2012/10/01/3843039/across-latin-america-quest-for.html

 

MEXICO CITY -- Steadily high prices for gold are having a dramatic impact on parts of Latin America, bringing a flood of foreign investment and stirring a gold bug among wildcat miners in the jungles.

 

Some of Latin America's poorest nations -- Bolivia, Honduras, and Nicaragua -- have seen their balance sheets strengthened by gold production, while major producers Peru and Mexico reap billions in foreign exports.

 

But even as miners unearth deposits of gold, they also open up veins of social discontent. Protests over gold mining have become the coin of the day in areas where villagers complain of water pollution, a lack of jobs, and environmental devastation. ....

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Jacob Crowell's curator insight, October 15, 2014 2:25 PM

This article shows how natural resources can impact regions socially, politically and economically. In Bolivia, Honduras, and Nicaragua many investors are flocking to mine gold. Although a lot of money has flowed into the gold market in these countries, civil unrest has started because workers are being abused more to meet the increased demand. Also mining is drastically altering the landscape of these countries.

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Morning Gold Market Report 10/2

GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Despite the easing move from the Royal Bank of Australia overnight, gold prices in the early US action weren't giving off definitively positive vibes. Rising unemployment readings from Spain and ongoing talk about the US fiscal cliff have tempered macro economic views into some private US employment survey figures later this morning. However, expectations for the ADP report call for a fairly solid result and while positive news might be supportive for some physical commodity markets, the gold market recently has become very dependant on the prospect of more easing from the US Fed.

 

At least to start today, gold is benefiting from favorable currency market action and from higher US equities. Gold might also see some minor support from news of a minor up tick in a gold derivative holdings yesterday afternoon. However, traders should expect somewhat of a noted reaction to the private jobs report due out early in the session, as jobs news is thought to be the primary focus of the Fed.

 

Comex Gold Stocks were 11.013 million ounces up 3,968 ounces.

While the RBA easing move overnight should provide fresh support for gold prices, a large measure of the gains in December gold over the last 5 trading sessions has come from hope of either Chinese or US central bank easing and therefore the gold trade is likely to fixate on economic information. In addition to the ADP figures, the markets will also see September Auto sales results and that news could also contribute to the easing/no easing debate. ...

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