Monday, July 14, 2014

Gold items of note ( July 14 , 2014 ) -- GLD ETF surprisingly surges ( now that Germany allegedly put a halt to seeking its long gone gold goodbye ) ........ Meanwhile , after steadily gaining in price , one just had to know a gold smash was overdue ..... More manipulation on tap as Yellen set to testify before Congress - when will Fed easy money end if ever ........ China demand still steady as she goes ............. Regulators and Investigators search for wrongdoing everywhere but perhaps the most obvious places .

GLD ETF Holdings Surge Most In Three Years As Gold Has Biggest Daily Drop In 2014

Tyler Durden's picture

Today saw the mainstream media congratulate themselves over the demise of the anti-status-quo indicator - gold. The precious metal dropped over 2% on the day amid major volumes in futures - its biggest drop in 2014. However, it seems the GLD ETF decided today's dump was the right opportunity to load up on the "put against the idiocy of the political cycle," which saw its largest inflow since August 2011. The ongoing oscillation between the paper and physical markets (amid the chaos that China's Qingdao ponzi has created) appears to have shifted trend as the last 2 months has seen the biggest net inflows in 2 years (since pre-German gold repatriation).

with consistent inflows the heaviest since German repatriation requests began...

Makes one wonder if that "rumor" of German canceling its gold recall had something to it...

Volume-Slump, Gold-Dump And Short-Squeeze Double-Pump Lifts Dow To Intraday Record High

Tyler Durden's picture

On the heels of Friday's late melt-up, futures opened quietly on Sunday before ramping dramatically higher as Europe opened(which also saw Gold monkey-hammered lower) and then one again as US opened (along with another gold smackdown). In both cases, USDJPY was the 'igniter' of momentum. After last week's best (worst) week for "most shorted" stocks, the US open saw them instantly ramped higher and then again another squeeze pump into the EU close. Notably, the Russell dropped over 0.5% from its opening print as it appears all the buying power occurred in that early short squeeze pump. Shortly after 3ET, AAPL started to fade and then VIX pushed higher (as "most shorted" stocks started accelerating lower). By the close the Dow had lost its record highs, Russell was down 2.65% for July, Gold (and silver) were whacked 2.4% (worst in 2014), oil closed up modestly, USD unch (JPY -0.25%), and Treasury yields only +2-3bps. S&P futures volume ended 30% below average.

The S&P remains marginally green post-payrolls (and notably the ramps in stocks occurred at the EUR and US opens)...

Notably this was all driven by two Squeeze pumps in "Most Shorted" stocks

Lifting the Dow to Record highs (briefly)... Deja vu all over again...?

Thanks to USDJPY

And VIX initial pump

But once that initial pump had faded, it appears the sellers had the upper hand... (this is performance post 0931ET)

And Utilities, Financials, and Homebuilders were the most sold from the open...

For July, the Russell 2000 remains the big laggard...

Bonds are not so exuberant about the growth hopes...

The USD ended the day unchanged but notably JPY weakness was offset by some modest EUR strength...

Treasuries were hardly ramapaging higher as stocks hit new highs..

But the main story was Gold (and silver) - which were whacked lower...

With major volume dumps at the EU open and US open... but nbotably GHold bounced off its 100DMA

Charts: Bloomberg

14 JULY 2014

Gold Daily and Silver Weekly Charts - Liberté, Liberté Chérie

The hit on the metals began in the quiet overnight hours and received some additional momentum on the New York open. Here is a picture of a 2300 gold contract 'dump.' Just another day of price discovery, nothing to see here.

Tomorrow is when Bubbles Yellen gives her Humphrey-Hawkins testimony to the Congress.

That was a very close World Cup final game yesterday, for those who actually watched it before commenting on it. While it was largely a defensive battle, Argentina gave up a few opportunities to score that I am sure will be to their regrets in retrospect.

Götze's goal for Germany was very well done against the able goalkeeping of Romero, and was only his second of the tournament. Herr Schweinsteiger must surely have set some sort of record for the number of medical treatments on the field. But there was a general strong team play on both sides, and the sort of well executed game that graced the setting well.

Happy Bastille Day, mes amis.

Have a pleasant evening.



Koos Jansen: Demand on Shanghai Gold Exchange remains steady

3:15p ET Monday, July 14, 2014
Dear Friend of GATA and Gold:
Withdrawals from the Shanghai Gold Exchange for the week ending July 4 were very close to withdrawals for the previous week, continuing at a rate that, annualized, would reach 1,900 tonnes, according to gold researcher and GATA consultant Koos Jansen's report today. But, Jansen writes, Shanghai gold has been trading at a slight discount to London gold, indicating no shortage in China at the moment. Jansen's analysis has begun to be posted at the Bullion Star Internet site --
-- but his previous analyses will remain posted at his own Internet site, In Gold We Trust, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Investigators needn't have left Washington to search for forex riggers

Junior Traders Offered Immunity in Forex Probe
By Daniel Schafer and Caroline Binham
Financial Times, London
Monday, July 14, 2014
U.S. prosecutors are offering immunity deals to junior traders in London as they try to gather evidence against banks and more senior staff in the investigation into alleged currency market manipulation.
U.S. Department of Justice staff have flown to the U.K. in recent weeks to interview foreign exchange traders, who have been offered partial immunity in exchange for volunteering information about superiors, people familiar with the situation said. ...
... For the full story:

Yellen tells magazine Fed's easy money will be needed even after recovery

By Jonathan Spicer
Monday, July 14, 2014
The Federal Reserve will still need to deliver "unusually accommodative" monetary policy even once the U.S. economy returns to "where we want it to be," Fed Chair Janet Yellen was quoted as saying in a magazine article.
The New Yorker, which interviewed Yellen three times in the last few months, in its July 21 issue quoted her as saying the economy still faced headwinds.
"And so even when the headwinds have diminished to the point where the economy is finally back on track and it's where we want it to be, it's still going to require an unusually accommodative monetary policy," she is quoted as saying in the article that stresses Yellen's role as public servant. ...
... For the full story: