GOLD crept higher in quiet summer trade in London on Friday, adding 0.4% for the week as world stock markets also rose but commodity prices fell back. Silver held 2.5% below last Friday's finish in Dollars.
Local miners shine as gold price jumps by nearly $20 ABC Local Australian gold miners have jumped in local trade in response to a rising gold price. Spot gold has gained more than $20 US an ounce this morning, to $1,317 US an ounce.
This is an interesting article for several reasons, not the least of which is that it is from a Russian publication and perspective, reflecting on the possible actions of China in the evolution of the global reserve currency regime.
As you know Russia is promoting a rethinking of the post Bretton Woods monetary system through their chairmanship of the G20 this year. There are other shoes to drop yet from that.
I suspect that China is playing chess here, or perhaps more appropriately the game of 'Go,' and not checkers. So snap judgements about what they are doing and why they are doing it are probably going to be fairly shallow. Most professionals and so-called experts are blinded by the status quo, lost in their own jargon and assumptions. There are many mechanics, but fewer systems thinkers.
Every action that is public masks a myriad of moves and countermoves done off the board and in quiet. Most who comment fail to grasp this because of cultural predilections.
Thoughts about capitalists selling rope do come to mind among other things relative to the short term and self-serving, stupidly greedy nature of the markets these days. But to borrow a phrase, economic power grows out of the barrel of a gun. It can call most hands.
Among other things the price discovery mechanism for gold currently resides with the Anglo-American financial establishment, which has been fairly shameless of late in shoving prices around the plate using paper leverage, and fixing key prices at will whether they ...
On the heels of Ben Bernanke signaling that the U.S. economy is weak and needs a highly accommodative Fed policy, today one of the top economists in the world said that despite the recent capping of gold at $1,300, gold is heading to new all-time highs. Michael Pento, founder of Pento Portfolio Strategies, wrote this piece for KWN.
Pento: “The prevailing mantra on Wall Street is that gold’s bull market is now over and it’s time to bury precious metals as an investment theme for the indefinite future. The rational for this is based on the belief that many investors held misguided fears during the credit crisis about a breakout of massive inflation and economic chaos, which drove gold to nearly $2,000 per ounce....
With gold and silver getting consolidating, today John Hathaway spoke with King World News about what is happening in the war on precious metals. Hathaway also spoke about the gold and silver shares and what is taking place in the industry. Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating.
Hathaway: “As far as gold goes, it looks to me like we have made an important low. A couple of people I respect have called it, McClellan would be one of them. I don’t know if that means we rocket higher, but it seems to me we have seen the worst. ...
Gold was stopped cold in its tracks today at the psychological round number resistance level of $1300. It had initially reacted to Ben Bernanke's comments, (which most market analysts and players viewed as dovish) by moving smartly higher. During the Q&A session which followed, gold was slammed lower by a wave of very strong selling.
In watching the price action it occurred to me that just as we suspected in our notes from yesterday, nothing new or fresh proceeded from the Chairman. In other words, there was NO FODDER for the bull. Gold had already run higher last Wednesday when Bernanke first reversed himself from his comments in June. At this point in the game however, that is now old news. What gold needed to propel through $1300 was something far more definitive than what Mr. Bernanke gave the markets today. ...
I had the opportunity this week to reconnect with Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital.
It was a powerful interview, as Peter indicated the Fed is trapped in a long-term position of destroying the dollar, while mainstream voices cheer resultant new highs of the stock market. Such dollar debasement Peter explained, means “the price of gold is going to skyrocket”—once the negative propaganda wears off.
In response to this week’s conflicting policy statements issued by the Fed, Peter said, “They checked into the ‘Roach Motel’ of monetary policies because they can get in—but there’s no way to get out. So what they do is they bluff. They pretend there is an exit strategy knowing that exit is impossible…they just have to maintain the pretense as long as they can, before the market figures out the true predicament they’re in.”
“No matter what Ben Bernanke says, between now and the time he’s supposed to taper, he will come up with an excuse why he can’t and I think he already knows this. But he can’t let the market know that the whole recovery…is merely a temporary by-product of the QE, and that the minute you remove the QE—we’re right back in recession.”
When asked if continued money printing is setting the stage for an equities market collapse, Peter said, “I think the dollar is going to collapse before the market [does]…The Fed is propping up asset prices by debasing the dollar—the currency with which those asset prices are denominated.” ...
As you know Ben Bernanke is giving what is likely to be his last testimony to Congress today as the Chairman of the Fed.
So we see gold doing the old 'wax on, wax off.'
The wiseguys need bullion going into a key delivery month of August at the COMEX. Their registered for delivery inventories are at record lows for this leg of the bull market. Overall inventories are getting thin as well.
Every time this has happened, there has been a marked change in the direction of price, higher.
I found this transcript of Lars Schall's interview with William Kaye to be informative.
The decline in the price of gold coincided with the Bundesbank's request for repatriation as I have shown in the past. I would not be surprised if this gold market operation, which is facilitating the removal of large amounts of gold from the ETFs which I have also documented, is serving the purpose of replenishing the missing gold stocks.
Stand and Deliver: How Germany Disrupted the World Gold Market
It may also take the form of a 'stealth confiscation' which will allow the TBTF bullion banks to get long the metals, and ride them higher. ...
Gold prices benefit from Fed remarks Global Times Gold prices benefited from a weakening US dollar and comments from US Federal Reserve Chairman Ben Bernanke last week, according to the commodity analysts from the Australian bank ANZ.
Many recent published commentaries appear to have lost perspective on the now much-hated Gold stock sector. The fact of the matter is that, technically, the secular bull market in Gold stocks has not even been confirmed. I do believe that in retrospect, the late 2000 bottom in Gold stock indices will be "the" bottom, much like the 1974 bottom in the Dow Jones Industrial Average (DJIA) was the true nominal bottom in this common stock index at that time. Here is a long term chart of the DJIA from 1940 thru 1985 (stolen from chartsrus.com) to show you what I mean: ...
The heavy price of Greek gold The Independent The large-scale clearance on this remote mountain-side in north-eastern Greece is only the preliminary part of a gold mining project green-lighted by the country's cash-strapped government; a...
In the last letter, I predicted that SPX was ready for a pause before moving up to its 1692 projection. The pause was only a 2-day affair and the index has now reached its target. However, the recent PF pattern gives it the potential ...
Asia Stocks Gain on Abe as Yen to Gold Jump Amid Earnings Bloomberg Gold rose 1.3 percent, while copper futures rallied 0.6 percent. West Texas Intermediate crude was set for the highest close since March 2012.
MAURITIUS (Bullion Street): Gold prices have been hammered in 2013 having fallen 25% wiping out $60 bn in value of physically backed Gold exchange traded funds. Investors have lost faith in gold but gold recovery would be driven by stimulus measures that will continue in USA, China, Japan, according to Alan Manzie, Investment Advisor, Ascenta Bullion Plus Fund.
Even if US ends or tapers quantitative easing in early 2014, the West would be awash in cheap money. Catalysts for gold price inflation would more likely revert to deflation(a possibility) and sovereign credit rating risks. ...
At this morning’s presentation to the House Financial Services Committee, Federal Reserve Board Chairman Ben Bernanke said reductions of the Fed’s bond-buying program, known as Quantitative Easing or simply QE, is “by no means on a preset course” and that the Fed could leave the program intact-or even increase purchases-if warranted.
Most Fed watchers and financial market participants — including many gold traders and investors — are betting QE3 will continue with monthly asset purchases of $85 billion for another quarter or two before a gradual reduction and winding down of the current super-accommodative monetary policy.
But what if labor market conditions worsen and the unemployment rate begins rising — in contrast to popular expectations?? That could easily happen if the U.S. economy stumbles in the months ahead.
Today’s disappointing news that housing starts fell 9.9 percent in June shows the economy’s vulnerability. And, with mortgage interest rates up sharply in the last month, the Fed is now under pressure to step up its purchases of mortgage-backed securities to support new home construction.
Meanwhile, economic growth in America’s export markets, led my Europe and China, is also on the decline and the rise in the dollar exchange rate is making us less competitive with our major trading partners. Net exports have contributed great deal to U.S. GDP in recent years — but we can’t count on this to continue. ...
I'm sure by now everyone has seen the reported plunge in housing starts and housing permits on Tuesday. Single-family housing starts declined for the fourth month in a row. I have been expressing the view for a few months now, and backing the view up with copious amounts of evidence, that the housing market is getting ready to tank - and tank hard. Incidentally and anecdotally, just in the past couple of weeks I've noticed a literal avalanche of "for sale" signs all around central Denver.
And more economic data was released on Monday which further reinforces my contention that entire economy is in a serious decline. In fact, based on several recent economic reports, it's probably safe to say that the GDP, on a real, inflation-adjusted basis, is now retracting - i.e. we're in a recession. As John Williams of Shadowstats.com explains:
"Underlying economic reality remains much weaker than Fed projections. As actual economic conditions gain broader recognition, market sentiment should shift quickly towards no imminent end to QE3, and then to ..."
TORONTO (miningweekly.com) – NYSE- and TSX-listed McEwen Mining chief owner Rob McEwen has plenty of faith that the gold price will, within the next two years, head north of $2 000/oz and even cross the $5 000/oz mark in the not too distant future.
In an interview with Mining Weekly Online, McEwen said that while there was a lot of sentiment out there that the gold price would go lower, he believed the price of the yellow metal would go much higher.
McEwen pointed to historical precedents where governments debased their currencies through monetary expansion in excess of their sustainable debt loads, which caused the currency to devalue relative to assets such as gold.
In the past, these happened in isolated cases, but were more commonplace these days, as many countries and regions, including the US and the European Union, were concurrently pumping cash into their economies to keep ...
The gold price added to recent gains on Tuesday to reach a three-week high, but fell short of the crucial $1,300 an ounce level.
Gold futures were changing hands at $1,290 in late afternoon trade, after earlier hitting an intra-day high of $1,295, ahead of testimony by the US Federal Reserve Chairman Ben Bernanke in front of the US Congress on Wednesday.
Gold investors will be looking for clues from Bernanke about the future of the central bank's quantitative easing program.
Fears that the Fed may start to dial back its asset buying program that adds $85 billion of cheap money to financial market each month as soon as September, has effectively put a ceiling on the gold price as it attempts to recover from near 3-year lows hit late June.
The softness in the gold price comes despite surging demand in China as evidenced by the premium traders on the Shanghai Gold Exchange are willing to pay for the metal. ...
MINING.com - Your source for global mining news ... The gold price added to Monday's strong performance on Tuesday, jumping as much as 2% or $25 in early trade to above the psychologically important $1,250 level.
Zee News Gold prices may move upwards up in next few months Times of India LUCKNOW: Gold prices will inch up again steadily and will hover between Rs 26,500 and Rs 27,500 in the next few months before crossing Rs 28,000 per ten grams again around...
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