The <b>Gold Price</b> Gave Up $6.80 on the Comex Closing at $1.297.70 |
- The <b>Gold Price</b> Gave Up $6.80 on the Comex Closing at $1.297.70
- Shanghai Becoming Global Gold Hub And <b>Gold Price</b> Discovery <b>...</b>
- Could mobile phone recycling extend <b>gold price</b> suppression for <b>...</b>
- <b>Gold Price</b> Analysis- August 18, 2014 - DailyForex.com
| The <b>Gold Price</b> Gave Up $6.80 on the Comex Closing at $1.297.70 Posted: 18 Aug 2014 05:22 PM PDT
Gold nearly negated Friday's V or spike bottom, but not quite. Friday's low was $1,293 but today's was $1,296.50. That sure rubs the sparkle off Friday, though. The GOLD PRICE has support about $1,295. It closed today below its 20 & 50 day moving averages, but above that $1,295 support. Worst is, it closed below the downtrend line form October 2012, the line gold has been struggling to conquer. Friday and today have tugged the RSI below 50%, but the MACD remains barely pointing upward. Gold just has to begin moving up soon. The SILVER PRICE is just contrary. Gold drops, silver rises. It remains above the downtrend form the August 2013 high, and that is excellent. Unfortunately, that exhausts silver's excellent news. It's below all its moving averages, rose on lower volume, and has other indicators that look like five miles of bad road. Still, still, it's the time of the year for both metals to turn up, and all the positives of the June 2013 - December 2013 bottoms and better performance in 2014 remain. I am biting my nails and am as long as I can stand. David Stockman today said that today's mindless rally ignited over speculations that Janet Yellum, speaking at the Jackson Hole gathering of Our Masters, would sound "dovish," i.e., promise more inflation and zero interest rates across the horizon of eternity. Stockman is probably right since nothing in the world happened over the weekend to make the Dow worth 175.83 (1.06%) more than it was worth on Friday, or close at 16,838.74 today. S&P trailed right along with a 16.68 rise (0.85%) to 1,971.74. In an arresting example of journalist non-neutrality and incompetent writing, a Reuters report headlined "Wall St. Jump Takes Stock Index to 14-year peak on Fading Ukraine Worries." Sounds like the whole stock market is just exploding upward, don't it? I had to read the article three times to figure out which index he was talking about, since it sure ain't the Dow or S&P500 or Nasdaq or Russell 2000, etc. Turns out he meant the Nasdaq 100, which closed at its highest level since March 2000, when it began its long tumble. I scratched my head and went back to check the Dow & S&P500 charts. Dow reached today its 50 DMA (16,847) and 61.8% correction level (of the waterfall plunge that began in July). S&P500 has climbed above its 50 & 20 DMAs and better the 61.8% level. May be I'm wrong and there's not another leg down on this correction. Maybe the push toward the final top has begun. Either way, I wouldn't buy a market riding on Janet Yellum & the printing presses at the Fed. They're liable to suffer power failure at any time. Today's' Dow in Precious Metals results do highlight the divergence of silver from gold. Dow in gold rests in a clear downtrending channel form the June high. Today it only hit the 38.2% correction of that fall so far, and the top line of the downward channel. This all presages lower prices. Dow in Gold rose 1.61% today to 12.97 oz (G$268.11 gold dollars). It does stand above its 20 DMA (12.84) and 50 DMA (12.92). Silver's always more volatile than gold, so it earns a little fudge in interpretation. It rose 0.93% today to 860.22 oz (S$1,112.20 silver dollars), just above the 6.18% correction of the fall from First June to early July. Remember that fall in mid-June took the Dow in Silver through the bottom boundary of a rising wedge, usually a sign of much lower prices. I can't work out any way in my mind that the DiS would rise much further, but there ain't much room in my mind anyhow. US dollar index rose 16 basis points (0.2%) to 81.62, accomplishing no more than to wipe out and mirror-image Friday's downmove. Euro dropped 0.27% to $1.3360, and is fixin' to drop more. Japanese yen lost 0.2% to 97.50. It's always fun to share good news with y'all, considering we get a choking lot of bad news in this world, so here goes: I took Susan to her heart doctor in Nashville today and the pacemaker technician and Susan's doctor gave her an A++ report from her pacemaker reprogramming in May. I could have told 'em that though. Susan's been doing so well I asked her doctor is she could dial her back a few notches. She's got so much energy that if she spies me, she spits out three errands and before I can wheel to do those she spits out three more. If she gets any more energy, it's gonna put me under the sod. I'll be picking turnips from a step ladder. Now I remember, too, how kindly y'all have responded to my prayer requests for Susan, and I deeply appreciate it. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose.  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shanghai Becoming Global Gold Hub And <b>Gold Price</b> Discovery <b>...</b> Posted: 19 Aug 2014 04:52 AM PDT by GoldCore Today's AM fix was USD 1,300.25, EUR 973.75 and GBP 781.17 ounce. Today's 'LBMA Silver Price' was USD 19.66 per ounce.
Incredibly lacklustre trading continues with gold and silver tethered to the $1,300/oz and $20/oz levels respectively. Gold traded between $1,298 and $1,300 per ounce after gold in Singapore ticked very marginally higher. After a pick up volumes yesterday, volumes fell again today and gold futures trading volumes were 49% below the average for the past 100 days in London according to Bloomberg data.
Silver for immediate delivery was flat at $19.73 an ounce. Spot platinum rose 0.2% to $1,450 an ounce, while palladium moved another 0.2% higher to $898 an ounce – consolidating near new multi year nominal highs. Palladium touched $902.09 yesterday, the highest since February 2001 on concerns about tightness in the physical market and concerns regarding supply. There are no such concerns in the gold and silver markets at this time. They remain peculiarly range bound and tepid despite significant geopolitical risk and a very positive monetary backdrop of ultra loose monetary policies by western central banks for the foreseeable future. Shanghai Gold Exchange Launching International Bullion Exchange In Yuan Next Month The Shanghai Gold Exchange (SGE) is launching its yuan denominated international bullion trading exchange next month. This is another important step in internationalising the yuan or renminbi and positioning it as an alternative global reserve currency.
"The Shanghai Gold Exchange plans to start bullion trading in the city's free-trade zone on Sept. 26, according to three people with knowledge of the matter. The people asked not to be identified because they aren't authorized to speak to the media. Gu Wenshuo, a spokesman for the exchange, confirmed that the trading system is being tested, without giving further details. Shanghai wants to become a regional bullion-trading hub, giving foreigners access to the world's largest physical-gold market, Xu Luode, the exchange's chairman, told a conference in Singapore in June. The gold contract will be priced and settled in yuan and the infrastructure is in place for trading to start in the third quarter, Xu said in June. The zone will have avault capable of holding 1,500 metric tons of gold, which can either be imported into China or be in transit to other markets, Xu said. China is seeking to open up its bullion markets just as domestic demand weakens. Consumption contracted 19 percent in the first six months of the year, according to the China Gold Association. Bullion of 99.99 percent purity traded on the Shanghai Gold Exchange climbed 8.7 percent this year, damping demand which reached a record in 2013." Reuters reports this morning: "China has allowed three more banks, including a foreign lender, to import gold, sources with direct knowledge of the matter said, as the world's top gold buyer gears up for its strongest effort yet to gain pricing power of the metal. The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the launch in September of a new international bullion exchange in Shanghai with which China hopes to become a price-discovery centre. China and other Asian gold trading centres such as Singapore are calling for more localised pricing of the precious metal as they seek alternatives to the so-called London fix, the global benchmark for spot gold prices, which is being investigated by regulators on suspicion that it may have been manipulated. Standard Chartered (STAN.L), Shanghai Pudong Development Bank (600000.SS) and China Merchants Bank (600036.SS) were given regulatory approval recently to import gold, five sources with direct knowledge of the matter told Reuters. China approached foreign banks, gold producers and refiners to participate in SGE's international bourse, sources told Reuters earlier in the year, to boost its position as a price-discovery centre for gold. It plans to launch three physically-backed gold contracts. The chairman of the exchange said in June that China should have its own pricing benchmark as it is the biggest consumer and producer of gold." Conclusion However, an important fact, not realised by most market participants, is that the people of China were banned from owning gold bullion by Chairman Mao in 1950. This means that the per capita consumption of over 1.3 billion people is rising from a miniscule base. This suggests that demand will consolidate at these levels and could again return to record levels – particularly if there are losses in the Chinese property market or stock markets. This prohibition continued until 2003 when the Chinese gold market was first liberalised and China made its first steps to becoming a global gold hub to rival New York or London. Since the market in China was liberalised, gold in yuan terms has risen by more than 250% while the stock market has performed poorly. Even after the significant increase in demand seen in recent years – Chinese per capita gold ownership remains well below that of the levels seen in India and other Asian countries and indeed below levels seen in more affluent Hong Kong. Culturally, India is known to have the greatest affinity for gold in the world. China had a similar cultural affinity prior to the "cultural revolution" and in time its levels of gold ownership will likely rival those seen in India, Vietnam and other Asian countries. Within the lifetime of many Chinese people living today is the experience of hyperinflation as many middle aged and elderly Chinese people experienced hyperinflation in 1949. Therefore, as in Germany, there is a greater awareness of what inevitably happens when a central bank debases the paper currency. Many market participants and non gold and silver experts tend to focus on the daily fluctuations and "noise" of the market and not see the "big picture" or major change in the fundamental supply and demand situation in the gold and silver bullion markets. This is particularly due to investment, store of wealth and central bank demand from China and the rest of an increasingly affluent Asia.
It is worth noting that the People's Bank of China's official gold reserves are very small when compared to those of the U.S. and indebted European nations. They are miniscule when compared with China's massive foreign exchange reserves of more than $3 trillion. The People's Bank of China is continuing to quietly accumulate gold bullion reserves. As was the case previously, they will not announce their gold bullion purchases to the market in order to ensure they accumulate sizeable reserves at more competitive prices. They also do not wish to create a flight from the dollar – thereby devaluing their sizeable dollar reserves. Expect an announcement from the PBOC, sometime later this year or in 2015, that they have trebled or even quadrupled their reserves to over 3,000 or 4,000 tonnes. Receive our award winning research here. 1 Total Views 1 Views Today | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Could mobile phone recycling extend <b>gold price</b> suppression for <b>...</b> Posted: 17 Aug 2014 09:58 AM PDT 1p ET Sunday, August 17, 2014 Dear Friend of GATA and Gold: This week the BBC reported some details on a subject of which most gold investors may be generally aware: that mobile telephones typically contain a small amount of gold. Speculating on the prospects for recycling that gold, the BBC concluded that it probably would not accomplish much. "About 2,700 tonnes of gold are produced every year from mining -- about 7.4 tonnes per day," the BBC said. "To get that from mobile phones we'd need to recycle 300 million of them. And if we did that every day, the world's estimated seven billion mobile phones in active use would run out in 23 days." ... Dispatch continues below ... ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. But 23 days' worth of gold supply is really not so minor in the age of gold price suppression. For the BBC report overlooked two crucial questions: -- In the hands of central banks and their bullion bank agents, how much paper gold could be hypothecated and rehypothecated from those recycled phones and sold into the market to help suppress the price of the once and possibly future world reserve currency? -- And could the BBC itself and other mainstream financial news organizations continue to be relied upon not to report about the purposes and mechanisms of gold price suppression? (See http://www.gata.org/taxonomy/term/23.) Recycling that was creative enough might extend the gold price suppression scheme for many years while giving it a politically correct sheen. The BBC report is appended. CHRIS POWELL, Secretary/Treasurer * * * How Much Gold Can We Get from Mobile Phones? By Keith Moore and Faizal Farook http://www.bbc.com/news/blogs-magazine-monitor-28802646 It's said that a bag of used mobile phones contains a gram of gold. There are a lot of mobile phones in the world, so, William Kremer asks, how much of the gold we need can we get from them? There be gold in them thar smartphones, said the European commissioner for the environment, Janez Potocnik, last month. He didn't use those exact words, but that was the general idea. "The business case is clear," he said, as he launched revised waste and recycling targets for the EU. "There's gold in waste -- literally. It takes a ton of ore to get 1 gram of gold. But you can get the same amount from recycling the materials in 41 mobile phones." This seems to be largely correct, whether the commissioner was talking about an imperial ton, or a metric tonne. (One is 1,016 kilograms, the other 1,000 kilograms.) In gold-rich ore deposits, there are concentrations of gold at one or two parts per million, says Dave Holwell, an economic geologist at the University of Leicester. That equates to 1 or 2 grams per tonne. And the idea that 41 handsets contain 1 gram of gold stems from a United Nations report on electronic waste. Brussels-based technology company Umicore told the BBC you can actually get this amount of gold from just 35 phones. To look at it another way, Umicore says a tonne of old phones (weighed without their batteries) yields about 300 grams of gold. But the business case may not be as clear as the commissioner claims. At current gold prices, the amount in your handset is worth less than L1 ($1.67). While Umicore says extracting gold from phones is commercially viable, another company, London's Genuine Solutions Group, told the BBC it makes little or no money this way. The wider point of Potocnik's speech was to promote what he called "the circular economy." "In essence we propose to make Europe a society without waste: to take the 600 million tons of materials contained in our waste and pump them back into productive use in the economy," he said. Of course you can recycle gold from a range of different products, but how far could we satisfy our appetite for gold from phones alone? According to Dave Holwell, about 2,700 tonnes of gold are produced every year from mining -- about 7.4 tonnes per day. To get that from mobile phones we'd need to recycle 300 million of them. And if we did that every day, the world's estimated seven billion mobile phones in active use would run out in 23 days. Join GATA here: Casey Research 2014 Summit http://www.caseyresearch.com/summit/2014-fall New Orleans Investment Conference https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| <b>Gold Price</b> Analysis- August 18, 2014 - DailyForex.com Posted: 17 Aug 2014 10:11 PM PDT
By: DailyForex.com Gold weakened against the American dollar for the first time in four sessions after the Labor Department's report revealed that concerns about inflation were insubstantial. The XAU/USD pair accelerated its descent after breaching the $1303 and traded as low as $1292.28 but news of a Ukrainian artillery strike on a Russian military unit triggered some safe-haven interest. Friday's data from the Commodity Futures Trading Commission (CFTC) showed that speculative traders on the Chicago Mercantile Exchange increased their net-long positions in gold to 147681 contracts (the highest level in five weeks), from 121463 a week earlier. It looks like conflicts in different parts of the world will continue providing a lift to gold in the short-term but long-term drivers will be the Federal Reserve's plans on interest rates and economic growth. From a technical perspective, there are two things to pay close attention. First of all, the pair currently reside inside the Ichimoku clouds on the weekly, daily and 4-hour time frames. The next thing is the inside bar on the weekly chart (as you can see, the entire weekly trading range was within the price range of the previous week).
Bouncing off of the 1292 support level (which happens to be bottom of the daily cloud) and closing above the 1303 level make me think that lower prices continue to attract buyers. However, if the bulls intend to charge towards the July high of 1344.92, I think breaking through the 1318 - 1324.50 area is essential. Support to the down side can be found at the 1297 and 1292 levels. If the XAU/USD pair closes below 1292, it is likely that we will see the market testing the next support level at 1280.
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