• Gold: 1,245.63 -0.64
  • Silver: 17.59 0.01
  • Euro: 1.078 -0.001
  • USDX: 99.76 -0.065
  • Oil: 47.79 0.16

Market Report: Strong rally on bear closing

The euro having been under pressure rallied by nearly 3%, bearing in mind it is 40% of the dollar index. At last night’s close, gold was up 2.5% and silver 4% in the first week. Bear closing is the order of the day, as forewarned in last week’s market report. Everyone seemed to be bullish dollar/bearish everything else, and that was bound to reverse at some time. Whether the December highs for the dollar marks a significant turning point remains to be seen. If not, the bullion banks have unfinished business with bear positions in gold futures on Comex yet to be fully closed. The next chart is of net swaps in gold.

Silver Market Morning: Jan 6 2017 - Shanghai...

Yesterday the People’s Bank of China stepped into the foreign exchange market to try to restrain the fall in the Yuan and managed to pull the Yuan higher with it reaching 6.86 at one point. But as you can see this has been short-lived as the currency sank back to 6.9211 today, despite a weaker dollar. The recent fall in the Yuan has been due to a strong dollar and not a weak Yuan. But China is conscious of the Trumped up charge that it is a ‘currency manipulator’. The evidence is otherwise with the Yen, euro and sterling providing more evidence of such than China.

Silver Market Morning: Jan 5 2017 - Gold and...

Shanghai gold prices continue to rise slightly on a daily basis and both London and New York are moving higher, faster as they appear to be catching Shanghai up. This again confirms that demand in Shanghai is solid and solid enough to pull gold out of the developed world gold markets. The strength or weakness of the dollar is not affecting this as you can see in Yuan prices. These appear to be rising in a relatively stable pattern over the last month. It is the translation into dollar prices that reflects dollar moves.

Silver Market Morning: Jan 4 2017 - Gold and...

With a weaker dollar today, gold has jumped in the dollar but even more so in the euro. But what is remarkable is that there was a huge sale of gold from the SPDR gold ETF, which did not move the gold price down. Instead the gold price rose and more so than appeared justified by the fall in the dollar. We can attribute this to the ongoing pull of Chinese prices and demand in Shanghai. The fact that gold prices went higher in London tells us that the gold sold from the SPDR gold ETF was not sold into London this morning, indicating it is on its way to Shanghai.

Silver Market Morning: Jan 3 2017 - Gold and...

On Friday the New York price closed at $1,151.70 on the last business day of last year, after Shanghai had closed at $1,187.35 a difference of $31.65 allowing for the difference in the gold being priced. This price also reflected a weaker dollar seen on Friday. This distorts the gold price we see today, so until the SGE publishes the gold price on the day it is set, we will need to adjust our perspective with hindsight.

Silver Prices and the Russian Connection

In accordance with the current blame-game promoted by the “fake news” diversions: We can blame Russia for HRC losing the election, releasing scandalous emails that the Democratic National Committee desperately wishes had remained private, the election of Trump, NSA spying on everyone, global terrorism, excess debt in the western world, the failure of hope and change, Federal Reserve monetary policy, unemployment, weak silver prices, strong stock markets, global bond market correction, the coming recession, derivatives disasters, slowing retail sales, Italian banking, cold weather, one brutally assassinated reindeer no longer able to pull Santa’s sleigh and a tardy delivery of goodies from the Easter Bunny next year…

Another Interview With Silver Guru Ted Butler

I can’t imagine substitute silver sellers stepping forward to replace them except at very high prices. As it stands now, eight commercial traders, many of them banks, hold a net short position of 85,000 contracts or 425 million ounces. There’s nobody to take their place at these low prices. JPMorgan figured all this out long ago and that’s one of the reasons they bought so much physical silver. There was no other way for them to cover without sending silver into orbit. You’re truly looking at the opportunity of a lifetime with silver. You just have to relax and let it play out.

Market Report: 2016 Review

The reason this matters for gold, and to a lesser extent silver, is that hedge fund managers sell precious metal futures to go long of the dollar, and it is this which has driven gold and silver lower in the final quarter of 2016. Commentators in their expectations for the gold price are now uniformly bearish. These are essentially trend-chasers dressing up their negative sentiments into a fake analysis. There are some so-called specialists in cycle theory, talking gold down to under $900. But no one knows tomorrow’s prices, and it’s worth observing that sellers of trading services make their money from selling trading services, and not so much from trading. If it were otherwise, why not just make money from trading?

Silver Market Morning: Dec-29 -- Silver is base-...

With the rise in the gold price today the price of gold at $1,130 looks more and more like the bottom. Of course we could be wrong, as these sales from the gold ETFs could re-emerge in the New Year. But with Shanghai showing a greater influence on the gold price today as prices jumped $10 after not being able to break up through $1,140 for some time, is an indication of what lies ahead? Next week should add to this conclusion or dismiss it.

Silver Market Morning: Dec-28 -- Silver stronger...

The markets are still in holiday mode ahead of the New Year, so we should not read too much into the markets this week. We see that in the small tonnage sold in the last day from the SPDR gold ETF. The amount is a strange figure but one we have seen many times before. It looks like a short term trader is trying to read the market on a daily or weekly basis and positioning himself, accordingly. If the price rises, we expect this amount to be purchased back in the days to come.