Jesse......
http://jessescrossroadscafe.blogspot.com/2013/10/gold-daily-and-silver-weekly-charts_23.html
Gold and silver were being capped most of the day on rather light volumes.
The CME inventory report for yesterday shows JPM was again the reaper for the bullion banks, bringing in 32,150 ounces of gold bullion to customer storage. It appears that 1 bar each left the customer vaults of HSBC and Scotia Mocatta. There was no change to the deliverable category.
As a reminder, next Monday the 28th is an expiration for November options on the Comex. November is not a particularly big month for the gold and silver futures.
The mining stocks were hit today along with a general pullback in equities. That often concerns those who watch them because it can signal a bear raid in the metals, with wiseguys positioning in related markets ahead of the hit. But let's see what happens.
There seems to be a seasonal manipulation in gold and silver during December, most likely tied into year end shenanigans perhaps. You can read prior articles about this here.
If they do that sort of thing again this year, I think they might be setting themselves up for a difficult first quarter with regard to available physical supply for delivery. It seems that the wiseguys will hit the wall again, taking it just a bit too far in short term greed, but one can always hope that wiser heads might prevail. If they do something and it doesn't break, the immature tend to double down and do it again. And again. And then it ends, badly.
Despite the antics, the structure of the physical gold bullion holdings in the US markets looks a bit stretched on the downside. I am growing ever more persuaded that higher prices will be required to bring more metal to meet market delivery demands. But since there has been a massive drawdown in the ETFs in the face of unrelenting demand for physical gold out of Asia, it could be a good trick.
Better that they start earlier rather than later. An exchange failure is not a desirable event. And if a major scandal hits the Fed, it could not come at a worse time for them since they will be facing a massive confidence game next year with regard to tapering.
Gold is flowing from West to East. This is something that obtain very little recognition in the mainstream media, and certainly not on from the financial media spokesmodels who appear as though they would be quite comfortable serving as the jaded but carefree hosts and hostesses for The Hunger Games.
As for me, I am ready for a perfect Manhattan, up with a twist. It's been a rather long week already. As Chekhov once said, "Any fool can face a crisis; it's the day to day living that wears you out."
Have a pleasant evening.
http://jessescrossroadscafe.blogspot.com/2013/10/gold-daily-and-silver-weekly-charts_23.html
23 OCTOBER 2013
Gold Daily and Silver Weekly Charts - Don't Fear the Reaper
"Those entrapped by the herd instinct are drowned in the deluges of history. But there are always the few who observe, reason, and take precautions, and thus escape the flood.
For these few gold has been the asset of last resort."
Antony C. Sutton
"Like liberty, gold never stays where it is undervalued."
J. S. Morrill
Gold and silver were being capped most of the day on rather light volumes.
The CME inventory report for yesterday shows JPM was again the reaper for the bullion banks, bringing in 32,150 ounces of gold bullion to customer storage. It appears that 1 bar each left the customer vaults of HSBC and Scotia Mocatta. There was no change to the deliverable category.
As a reminder, next Monday the 28th is an expiration for November options on the Comex. November is not a particularly big month for the gold and silver futures.
The mining stocks were hit today along with a general pullback in equities. That often concerns those who watch them because it can signal a bear raid in the metals, with wiseguys positioning in related markets ahead of the hit. But let's see what happens.
There seems to be a seasonal manipulation in gold and silver during December, most likely tied into year end shenanigans perhaps. You can read prior articles about this here.
If they do that sort of thing again this year, I think they might be setting themselves up for a difficult first quarter with regard to available physical supply for delivery. It seems that the wiseguys will hit the wall again, taking it just a bit too far in short term greed, but one can always hope that wiser heads might prevail. If they do something and it doesn't break, the immature tend to double down and do it again. And again. And then it ends, badly.
Despite the antics, the structure of the physical gold bullion holdings in the US markets looks a bit stretched on the downside. I am growing ever more persuaded that higher prices will be required to bring more metal to meet market delivery demands. But since there has been a massive drawdown in the ETFs in the face of unrelenting demand for physical gold out of Asia, it could be a good trick.
Better that they start earlier rather than later. An exchange failure is not a desirable event. And if a major scandal hits the Fed, it could not come at a worse time for them since they will be facing a massive confidence game next year with regard to tapering.
Gold is flowing from West to East. This is something that obtain very little recognition in the mainstream media, and certainly not on from the financial media spokesmodels who appear as though they would be quite comfortable serving as the jaded but carefree hosts and hostesses for The Hunger Games.
As for me, I am ready for a perfect Manhattan, up with a twist. It's been a rather long week already. As Chekhov once said, "Any fool can face a crisis; it's the day to day living that wears you out."
Have a pleasant evening.
Gata......
William Engdahl: China, gold prices, and U.S. default threats
Submitted by cpowell on Wed, 2013-10-23 11:17. Section: Daily Dispatches
6:15p ICT Wednesday, October 23, 2013
Dear Friend of GATA and Gold:
Writing for Russia Today, geopolitical and market analyst William Engdahl outlines the interest of the U.S. government and Wall Street in suppressing the price of gold. Engdahl's commentary is headlined "China, Gold Prices, and U.S. Default Threats" and it's posted at RT here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
China's 'tapering' counts more than Fed's, Kaye tells KWN
Submitted by cpowell on Wed, 2013-10-23 07:09. Section: Daily Dispatches
2:05p ICT Wednesday, October 23, 2013
Dear Friend of GATA and Gold:
Hong Kong fund manager William Kaye tells King World News that the bond buying "tapering" that matters is not the Federal Reserve's but China's, that the Fed is unlikely to avoid inflation when it starts monetizing the bonds China won't buy, and that awful things will follow in the United States. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Tocqueville's Hathaway links ETF gold outflows with exports to Asia
Submitted by cpowell on Wed, 2013-10-23 02:52. Section: Daily Dispatches
9:47a ICT Wednesday, October 23, 2013
Dear Friend of GATA and Gold:
In commentary posted at King World News, Tocqueville Gold Fund manager John Hathaway joins those correlating the depletion of metal in exchange-traded gold fund accounts with the flow of Western gold to Asia. Hathaway sees the gold market as being ready for a major advance. His commentary is posted at KWN here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Talk shifts away from 'tapering' and toward increased bond buying
Submitted by cpowell on Wed, 2013-10-23 02:02. Section: Daily Dispatches
Fed Likely to Delay Taper After Disappointing US Jobs Data
By Katherine Rushton
The Telegraph, London
Tuesday, October 22, 2013
The Telegraph, London
Tuesday, October 22, 2013
American employers created fewer jobs in September than forecast, raising expectations that the US Federal Reserve will keep pumping money into the world's largest economy at the same rate for several months yet.
Stock markets rose on Tuesday as investors bet that the central bank would keep on buying bonds at the rate of $85 billion a month until next year, and potentially even increase that figure to help fuel America's still-fragile economic recovery.
America added 148,000 jobs in September, according to delayed figures from the US Labour Department -- far short of analysts' forecasts of 180,000 jobs, and the 193,000 extra jobs created in August. The increase was also well below the average increase of 181,000 jobs a month which America has seen since the start of the year.
The country's labour market is expected to grow even more slowly in the last few months of 2013, as the US absorbs the impact of the political standoff which forced the government to shut down earlier this month.
"The October payrolls number will be bad due to the government shutdown. I think this might [delay] tapering to March," said Craig Dismuke, chief economic strategist at the US analysis firm, Vining Sparks.
Joseph Trevisani, chief market strategist at WorldWideMarkets, added that "another weak payroll" could push the Fed to increase its quantitative easing programme rather than scale it back.
The Fed has said it will start weaning the US economy off its fiscal stimulus scheme only after America's employment situation shows sustained improvement.
The country's unemployment rate fell to 7.2 percent in September, the lowest since November 2008, but the central bank has made it clear that it needs to see a sustained improvement in other factors, including job creation, before tapering begins.
It had been expected to start reducing its bond buying habit in the autumn, and surprised markets last month when it decided to keep the taps on full. The employment situation is just one of a number of factors which now appear to be kicking it into the long grass.
In addition to the weak jobs data, the government shutdown is expected to have forced a delay. Standard & Poor's, the ratings agency, estimated that the episode has sucked $24bn out of the US economy, shaving around 0.6 of a percentage point of its fourth quarter growth.
Chris Williamson, an analyst at Markit, said that tapering looks unlikely to happen before March and could be kicked back even further if it turns out that the US budget standoff had a major impact on business confidence. March "is by no means assured," he said.
The Fed is likely to ally its tapering decision to jobs growth even more closely under Janet Yellen, who will replace Ben Bernanke as chairman in January next year. Ms Yellen was one of the architects of the Fed's policy of linking fiscal stimulus measures to America's jobs situation, and is expected to be very vocal about ensuring the labour market is in good health before it starts pulling back on QE.
"I think it's reinforcing Yellen's hand as the dove on the committee," said Aaron Kohli, an interest rate strategist at, BNP Paribas.
The Dow Jones Industrial Average was up 119 points, or 0.8pc, to 15,511 in mid-morning trading in New York, whilst the S&P 500 index rose 14.1 points, or 0.8pc, to 1759. In London, the FTSE 100 had risen 53.4 points, or 0.9pc, to 6,713, by mid-afternoon.
* * *
* * *
http://harveyorgan.blogspot.com/2013/10/oct-23bgld-holds-constant-but-slv-loses.html
( Highlights....)
Wednesday, October 23, 2013
Oct 23b/GLD holds constant but SLV loses 24 tonnes/another strange 1.000 tonnes of gold added to JPMorgan customer (eligible) account
Good evening Ladies and Gentlemen:
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1334.10
The stakes for Washington and Wall Street in depressing the gold price are staggering. Were gold to soar to $10,000 or more, where many believe current demand-supply pressures would find it, there would be a panic selloff of the dollar and of US Treasury bonds. China now holds a record $3.7 trillion of foreign currency reserves and the US Treasury bonds and bills are about half that.
That sell-off would send US interest rates sky-high, forcing a chain-reaction of corporate & banking bankruptcies that have been avoided since the financial crisis broke in 2007 only owing to record near-zero Federal Reserve interest rates. That sell-off, in turn, would be the end of the US as the world’s sole superpower. Little wonder the Obama Administration is manipulating gold.
It cannot last very long at this pace, however.
Submitted by Tyler Durden on 10/23/2013 14:33 -0400
Gold closed down $8.60 to $1339.60 (comex closing time ). Silver was down 17 cents at $22.58.
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1334.10
silver: $22.58
Here are today's readings with Tuesday's comparison: GOFO rates slight decrease in negativity .
i) One Month: -.03000% vs Tuesday: -.04167%
ii Two Months: -.0166700%. vs Tuesday: -.035000
iii) Three Months: -.016700% vs Tuesday: -.005000000%
iv) Six months: +.04000% vs Tuesday: +.033300%
i) One Month: -.03000% vs Tuesday: -.04167%
ii Two Months: -.0166700%. vs Tuesday: -.035000
iii) Three Months: -.016700% vs Tuesday: -.005000000%
iv) Six months: +.04000% vs Tuesday: +.033300%
Let us now head over to the comex and assess trading over there today.
Here are the details:
The total gold comex open interest rose today by 6,024 contracts from 384,345 up to 390,369 as gold rose yesterday by $26.80. We are now in the active delivery month of October and here the OI fell by 131 contracts down to 54. We had 131 notices filed yesterday so in essence we neither gained nor lost any contracts standing in the October delivery month. The biggest of all delivery months is the December contract month. The December OI rose by 1619 contracts to 225,084. The estimated volume today was weak at 93,921 contracts. The confirmed volume yesterday was excellent coming in at 175,765.
The total silver Comex OI fell by 61 contracts as silver was up in price yesterday ( 52 cents ). The total OI now rests tonight at 114,767 contracts. We are now at extreme lows in OI with respect to silver (and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October saw its OI fall by 41 contracts down to 6 contracts. We had 42 notices filed yesterday so in essence we gained 1 contract or an additional 5,000 oz will stand for delivery. The big December contract saw its OI fall by 2 contracts down to 77,094. The estimated volume today was poor coming in at 25,626 contracts. The confirmed volume yesterday was also good at 48,097.
Oct 23.2013 opening standings for October contract month
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
nil
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| 32,150.000 (JPM) |
No of oz served (contracts) today
|
0 (nil)
|
No of oz to be served (notices)
|
54 (5400)
|
Total monthly oz gold served (contracts) so far this month
|
4339 (433,900)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
17,837.242
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 114,443.73 |
Opening for the October contract month
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 35,636.610 (Brinks,Scotia,) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 839,438.40 (Brinks,JPM) |
| No of oz served (contracts) | 5 (25,000 oz) |
| No of oz to be served (notices) | 1 ( 5,000) |
| Total monthly oz silver served (contracts) | 338 (1,690,000) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 46,710.97 |
| Total accumulative withdrawal of silver from the Customer inventory this month | 3,723,718.8 |
*****
http://www.silverdoctors.com/china-gold-prices-us-default-threats/
There are grave doubts whether the Federal Reserve actually holds the 8,044 tons of gold it claims it does. The former International Monetary Fund director, France’s Dominique Straus-Kahn, demanded an independent audit of the Federal Reserve gold after the US refused to deliver to the IMF 191 tons of gold agreed to under the IMF Articles of Agreement signed by the Executive Board in April 1978 to back Special Drawing Rights issuance.Immediately before he could rush back to Paris, he was hit by a bizarre hotel sex scandal and abruptly forced to resign.Straus-Kahn had been shown a secret Russian intelligence report prepared for President Vladimir Putin in which ‘rogue’ CIA agents revealed that the US Federal Reserve had no gold reserves and only lied that it did.
The stakes for Washington and Wall Street in depressing the gold price are staggering. Were gold to soar to $10,000 or more, where many believe current demand-supply pressures would find it, there would be a panic selloff of the dollar and of US Treasury bonds. China now holds a record $3.7 trillion of foreign currency reserves and the US Treasury bonds and bills are about half that.
That sell-off would send US interest rates sky-high, forcing a chain-reaction of corporate & banking bankruptcies that have been avoided since the financial crisis broke in 2007 only owing to record near-zero Federal Reserve interest rates. That sell-off, in turn, would be the end of the US as the world’s sole superpower. Little wonder the Obama Administration is manipulating gold.
It cannot last very long at this pace, however.
By William Engdahl, originally posted on RT.com:
In the very days when a deep split in the US Congress threatened a US government debt default, the gold price should normally jump through the roof, yet the opposite was the case. It is worth a closer look why.
Since August 1971, when US President Richard Nixon unilaterally tore up the Bretton Woods Treaty of 1944 and told the world that the Federal Reserve ‘gold window’ was permanently closed, Wall Street banks and US and City of London financial powers have done everything imaginable to prevent gold from again becoming the basis of trust in a currency.
On Friday, October 11, when there was no sign of any deal between US Congress members and the Obama White House that would end the government shutdown, the Chicago CME Group, which operates Comex – the Chicago Commodity Exchange, where contracts in gold derivatives are traded – announced that at 8:42am Eastern time the trading was halted for 10 seconds after a safety mechanism was triggered because a 2-million-ounce (56.7 million grams) gold futures sell order was executed.
SOMETHING ROTTEN IN GOLD MARKET
The result of that huge paper gold sale was that at just the time when a possible US government debt default would send investors in a panic rush to the safety of buying gold, instead, the price plunged $30 an ounce to a three-month low of $1,259.60 an ounce. Market insiders believe the reason was direct market manipulation.
David Govett, head of precious metals at bullion broker Marex Spectron, calls the sudden huge futures sale suspicious.
“These moves are becoming more and more prevalent and to my mind have to either be the work of someone attempting to manipulate the market or someone who really shouldn’t be trusted with the sums of money they are throwing around. There are ways of entering and exiting a market so that minimum damage is caused and whoever is entering these orders has no intention of doing that,” Govett said.
UBS gold trader Art Cashin echoed the suspicion.
“…if that happens once it could be an accident of technology, or it could be a simple error. But when it happens five times over a period of months, it does raise questions. Is it being done purposefully? Is somebody trying to influence the market?”
That ‘someone’ market sources believe is the Obama White House, in league with the Federal Reserve and key Wall Street banks that would be ruined were gold to really rise.
In March 1988, five months after the worst one-day stock market plunge in history, President Ronald Reagan signed Executive Order 12631. Order 12631 created the Working Group on Financial Markets, known on Wall Street as the ‘Plunge Protection Team’ because its job was to prevent any future unexpected financial market panic selloff or ‘plunge’.
The group is headed by the US Treasury Secretary and includes the chairman of the Federal Reserve, the head of the Securities & Exchange Commission, and the head of the Commodity Futures Trading Commission (CFTC) which is responsible for monitoring derivatives trading on exchanges.
Numerous times since 1988, reports have surfaced of secret interventions by the Plunge Protection Team to prevent a market panic selloff that could threaten the role of the US dollar. Former Clinton White House staff chief George Stephanopoulos admitted in 2006 that it was used to support the markets in the 1998 Russia/LTCM crisis under Bill Clinton, and again after the 9/11 terrorist attacks in 2001.
One ounce 24 karat gold proof blanks are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. (Reuters/Shannon Stapleton)
He said, “They have an informal agreement among major banks to come in and start to buy stock if there appears to be a problem.”
Clearly stocks are not the only thing the government manipulates. Gold these days is a prime focus. The price of gold in recent years—since the eruption of the US dot.com IT stock bubble in 2000—has exploded from around $300 an ounce to a recent record high above $1,900 in August, 2011. Gold rose an impressive 70 percent from December 2008 to June 2011, after the Lehman Brothers collapse and the start of the Greek crisis in the eurozone.
Since then, with no clear reason, gold has reversed and lost more than 31 percent, despite the fact that talk of a unilateral Israeli military strike on Iran and the US financial debacle combined with a euro crisis, and now, threat of US government default, created overall huge demand for investment in gold.
This past April 10, the heads of the five largest US banks, the Wall Street ‘Gods of Money’ — JPMorgan Chase, Goldman Sachs, Bank of America and Citigroup — requested a closed door meeting with Obama at the White House. Fifteen days later, on April 25, the largest one-day fall in history in gold took place. Later investigation of trading records at Comex revealed that one bank, JP Morgan Securities, was behind the huge selloff of gold derivatives. Derivatives are pieces of paper or bets on future gold or other commodity prices. To buy gold futures is very inexpensive compared with gold but influence the real physical gold price, largely because the US Congress, under lobby influence from Wall Street, since 2000 and the Commodity Trading Modernization Act, has left gold derivatives unregulated. The President’s Plunge Protection Team was at work now as well, clearly.
CHINA SMILES & BUYS
In effect a war, a financial war, is underway between the Wall Street giant banks and their close allies, including the major City of London banks and banks like Deutsche Bank on the one side, using paper gold derivatives trading in the unregulated COMEX, with covert support of the US Treasury and Fed. On the other side are real investors and Central Banks who believe that the world financial system, especially the dollar system, is teetering on the brink of disaster and that physical gold is the historical best safe haven in such a crisis.
Here, the recent buying of gold reserves by several central banks including Russia, Turkey and especially China, are notable. The short-term derivative gold price manipulations by JP Morgan and Goldman Sachs are creating smiles at the Peoples’ Bank of China and the Russian Central Bank among other buyers of physical gold. Since 2006 Russia’s central bank has increased its gold reserves by 300 percent.
Now, the Chinese central bank has just revealed data showing that China imported 131 gross tons of gold in the month of August, a 146 percent increase compared to a year prior. August was the second highest gold importing month in its history. More impressively, China has imported more than 2,000 tons of gold in the past two years. According to a 2011 cable made public by WikiLeaks, the Peoples’ Bank of China is quietly seeking to make the renminbi (the yuan) the new gold-backed reserve currency.
Hmmmm.
According to unofficial calculations, the Peoples’ Bank of China today holds about 3,500 tons of monetary gold, surpassing Germany, to make it number two in the world after the Federal Reserve.
24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. (Reuters/Shannon Stapleton)
And there are grave doubts whether the Federal Reserve actually holds the 8,044 tons of gold it claims it does. The former International Monetary Fund director, France’s Dominique Straus-Kahn, demanded an independent audit of the Federal Reserve gold after the US refused to deliver to the IMF 191 tons of gold agreed to under the IMF Articles of Agreement signed by the Executive Board in April 1978 to back Special Drawing Rights issuance. Immediately before he could rush back to Paris, he was hit by a bizarre hotel sex scandal and abruptly forced to resign. Straus-Kahn had been shown a secret Russian intelligence report prepared for President Vladimir Putin in which ‘rogue’ CIA agents revealed that the US Federal Reserve had no gold reserves and only lied that it did.
The stakes for Washington and Wall Street in depressing the gold price are staggering. Were gold to soar to $10,000 or more, where many believe current demand-supply pressures would find it, there would be a panic selloff of the dollar and of US Treasury bonds. China now holds a record $3.7 trillion of foreign currency reserves and the US Treasury bonds and bills are about half that.
That selloff would send US interest rates sky-high, forcing a chain-reaction of corporate and personal bankruptcies that have been avoided since the financial crisis broke in 2007 only owing to record near-zero Federal Reserve interest rates. That selloff, in turn, would be the end of the US as the world’s sole superpower. Little wonder the Obama Administration is manipulating gold. It cannot last very long at this pace, however.
BofAML Turns Bullish On Gold
BofAML's MacNeil Curry is changing his view on gold from bearish to bullish. The impulsive gains from the 1251 low of Oct-15 and break of the two-month downtrend (confirmed on the break of 1330) tells him that a medium-term base and bullish turn is unfolding. BoFAML looks for an ultimate break of the 1433 highs of Aug-28, with potential for a push to 1500/1533 long term resistance. In the next several sessions Curry suggest buying dips into 1309, cautioning that this bullish view is "wrong" if gold breaks below 1251. For those awaiting additional confirmation of a turn, Curry notes you need to see a break of 1375 (Sep-19 high & right shoulder off a multi-month Head and Shoulders Top).
No comments:
Post a Comment