Commodity Futures Trading Commission

Tyler Durden's picture

CFTC Probe Gold Plunge, “No Visible Central Bank Activity” Say Blackrock





The $20 billion gold futures sale and concentrated selling of gold futures on the COMEX on Friday and Monday is far more likely to be “nefarious” than the gold fixings in London. The CFTC’s track record to date has not been great and regulatory capture remains a real risk with the CFTC seeming to be reluctant to hold Wall Street banks who may be involved in price manipulation in the futures market to account. After the Libor revelations, it is surprising that there is not more scrutiny and hard questions asked of banks and regulators in this regard. Separately, large institutional fund manager Blackrock said that there was “no visible central bank activity” as the gold price plunged.  They said that gold's fundamentals remain strong and that the fall in price was driven by an outflow of "hot money" and that gold prices are now near the marginal cost of new supply which should provide strong support at these levels and lead to higher prices again. 

 
Tyler Durden's picture

Frontrunning: April 16





  • Investigators hunt for clues in marathon bombing (Reuters)
  • Investigators scour video, photos for Boston Marathon bomb clues (Reuters)
  • 'Act of Terror' Kills at Least Three, Injures About 140 as Bombs Wreak Carnage on Marathon Crowd (WSJ)
  • Brent Crude Below $100 (WSJ)
  • Slower China Growth Signals Days of Miracles Are Waning (WSJ)
  • Central Banks at Ease Limit Risk Political Backlash (BBG)
  • Merkel plans to quit midterm, says author (FT)
  • Monte Paschi Prosecutors Seize $2.3 Billion of Nomura Assets (Businessweek)
  • Treasuries back on investors’ buy lists (FT)
  • J.C. Penney Said to Seek Ways to Separate Real Estate for Cash (BBG)
  • Climate scientists struggle to explain warming slowdown (Reuters)
  • Putin Calls for Stimulus Plan After Recession Alarm (BBG)
  • TIPS in Longest Selloff Since ’08 as U.S. Bancorp Cuts (BBG)
 
Tyler Durden's picture

Frontrunning: March 14





  • Dimon’s ‘Harpooned’ Whale Resurfaces With Senate Findings (BBG)
  • Greece and lenders fall out over firings (FT) - as predicted 48 hours ago
  • Dallas Fed Cap Seen Shrinking U.S. Banking Units by Half (BBG) - which is why it will never happen
  • Xi elected Chinese president (Xinhua)
  • Russia Bond Auction Bombs as ING Awaits Central Bank Clarity (BBG)
  • U.S. and U.K. in Tussle Over Libor-manipulating Trader (WSJ)
  • Chinese firm puts millions into U.S. natural gas stations (Reuters)
  • In Rare Move, Apple Goes on the Defensive Against Samsung (WSJ)
  • Berlin Airport Fiasco Shows Chinks in German Engineering Armor (BBG)
  • Ex-PIMCO executive sues firm, says was fired for reporting misdeeds (Reuters)
  • Bank of Italy Tells Banks in the Red Not to Pay Bonuses, Dividends (Reuters)
 
Tyler Durden's picture

CFTC Investigating London Gold, Silver Price Fixing For Manipulation





Years after the CFTC, under the leadership of Goldman's Gary Gensler, theatrically agreed to investigate whether the price of precious metals was manipulated during trading - whether systematically or ad hoc - only to let that inquiry fizzle and drop the whole idea proclaiming there is manipulation, the commodity futures regulators are once again taking a look at shady activities originating at London. Or rather, it is "discussing internally" whether the daily London gold and silver price fixing is open to manipulation.

 
Tyler Durden's picture

Gold And Silver Traders Reduce Long Positions Again





Speculative long gold positions, or bets prices will rise, outnumbered short positions by 107,587 contracts on the Comex division of the New York Mercantile Exchange, the CFTC said. Net-long positions fell by 9,012 contracts, or 8%, from a week earlier.  Speculative long silver positions, or bets prices will rise, outnumbered short positions by 18,603 contracts on the Comex division of the New York Mercantile Exchange, the CFTC reported. Net-long positions fell by 3,134 contracts, or 14%, from a week earlier.  Miners, producers, jewelers and other commercial users were net-short 29,183 contracts, down 1,703 contracts, or 6%, from the previous week.

 
Tyler Durden's picture

Frontrunning: March 11





  • One in four Germans would back anti-euro party (Reuters)
  • EU Chiefs Seeking to Stave Off Euro Crisis Turn to Cyprus (BBG)
  • Ryan Says His Budget Would Slow Annual Spending Growth to 3.4% (BBG)
  • Goldman leads decline as Wall Street commodity revenues plummet (Reuters)
  • South Korea and US begin military drills (FT) and North Korea cuts off hotline with South Korea (Reuters)
  • Karzai Inflames U.S. Tensions  (WSJ)
  • Algorithms Get a Human Hand in Steering Web (NYT)
  • Meeting Is Set to Choose Pope (WSJ)
  • More U.S. Profits Parked Abroad, Saving on Taxes (WSJ)
  • Banks rush to redraft pay deals (FT)
  • Fugitive Fund Manager Stuffed Underwear With Cash, Fled (BBG)
  • Post-Newtown Gun Limits Agenda Narrows in U.S. Congress (BBG)
  • China Hints at Shift in One-Child Policy (WSJ)
 
Bruce Krasting's picture

On Closing the White House





All of D.C. is going to look dumb before this is over. Obama might get the award for deliberately mismanaging the process.

 
Tyler Durden's picture

Frontrunning: March 6





  • Kuroda to Hit ‘Wall of Reality’ at BOJ, Ex-Board Member Says (BBG)
  • Venezuelans mourn Chavez as focus turns to election (Reuters)
  • South Korea says to strike back at North if attacked (Reuters)
  • Milk Powder Surges Most in 2 1/2 Years on New Zealand Drought (BBG)
  • As Confetti Settles, Strategists Wonder: Will Dow's Rally Last?  (WSJ)
  • Pollution, Risk Are Downside of China's 'Blind Expansion' (BBG)
  • Obama Calls Republicans in Latest Round of Spending Talks (BBG)
  • Ryan Budget Plan Draws GOP Flak (WSJ)
  • Samsung buys stake in Apple-supplier Sharp (FT)
  • China Joining U.S. Shale Renaissance With $40 Billion (BBG)
  • Say Goodbye to the 4% Rule  (WSJ)
  • Traders Flee Asia Hedge Funds as Job Haven Turns Dead End (BBG)
  • Power rustlers turn the screw in Bulgaria, EU's poorest country (Reuters)
 
Tyler Durden's picture

Frontrunning: February 25





  • Risk of instability hangs over Italy poll (FT), Protest votes add to uncertainty in close Italy election (Reuters), and... Risk On
  • Czech inspectors find horsemeat in IKEA meatballs (Reuters)
  • China’s Slower Manufacturing Casts Shadow Over Recovery (Bloomberg)
  • So much for reform: China Prepares for Government Shuffle as Zhou Stays at PBOC (Bloomberg)
  • France to pause austerity, cut spending next year instead: Hollande (Reuters)
  • Sinopec to buy stake in Chesapeake assets for $1.02 billion (Reuters)
  • White House warns states of looming pain from March 1 budget cuts (Reuters)
  • China Quietly Invests Reserves in U.K. Properties (WSJ)
  • Osborne Keeps Austerity as Investors See Downgrade as Late (BBG)
  • South Korea's new president demands North drop nuclear ambitions (Reuters)
  • Russia accuses U.S. of double standards over Syria (Reuters)
 
Tyler Durden's picture

Frontrunning: February 20





  • Office Depot Agrees to Buy Officemax for $13.50/Shr in Stock
  • Bulgarian Government Resigns Amid Protests (WSJ)
  • Rome will burn, regardless of Italian election result (Reuters)
  • Abe Says No Need for Foreign Bond Buys Under New BOJ Chief (BBG)
  • Rhetoric Turns Harsh as Budget Cuts Loom (WSJ)
  • Muddy Waters Secret China Weapon Is on SEC Website (BBG)
  • Business Loans Flood the Market (WSJ)
  • Staples May Be Winner in Office Depot-OfficeMax Merger (BBG)
  • Fortescue Won't Pay Dividend, Profit Falls (WSJ)
  • Key Euribor rate on hold after rate cut talk tempered (Reuters)
  • FBI Probes Trading in Heinz Options  (WSJ)
  • Spain Said to Impose Yield Ceiling on Bond Sales by Regions (BBG)
  • BOK’s Kim Signals No Rate Cut Needed Now as Outlook Improves (BBG)
 
Tyler Durden's picture

Frontrunning: January 25





  • Fed Pushes Into ‘Uncharted Territory’ With Record Assets (BBG)
  • Next up in the currency wars: Korea - Samsung Drops on $2.8 Billion Won Profit-Cut Prediction (BBG)
  • China Warns ‘Hot Money’ Inflows Possible on Easing From Abroad (Bloomberg)
  • BOJ Shirakawa affirms easy policy pledge but warns of costs (Reuters)
  • Merkel Takes a Swipe at Japan Over Yen (WSJ)
  • Wages in way of Abe’s war on deflation (FT)
  • Italian PM under fire over bank crisis (FT)
  • Senior officials urge calm over islands dispute (China Daily)
  • Spain tries to peel back business rules (FT)
  • Rifts Over Cyprus Bailout Feed Broader Fears (WSJ)
  • Soros Says the Euro Is Here to Stay as Currency War Looms (BBG)
 
Tyler Durden's picture

Eric Sprott: Why Are Investors Buying 50 Times More Physical Silver Than Gold?





For the time being, the silver price is essentially set in the paper market where the daily average trade on the Comex is approximately 300 million ounces. An outrageous number when you compare it to the daily mine production of about 2 million ounces. As Bart Chilton, Commissioner of the Commodity Futures Trading Commission stated on October 26, 2010, “I believe there have been repeated attempts to influence prices in silver markets. There have been fraudulent efforts to persuade and deviously control that price. Based on what I have been told and reviewed in publicly available documents, I believe violations to the Commodity Exchange Act have taken place in the silver market and any such violation of the law in this regard should be prosecuted.” Which brings us back to the phrase “Follow the money.” In our view, it is almost inconceivable that investors would allocate as many dollars to silver as they would to gold, but that is what the data shows. The silver investment market is very small. While the dollar value of gold in the world approaches $9 trillion, the value of silver in the forms of jewelry, coins, bars and silverware is estimated at around $150 billion (5 billion ounces at $30 per ounce). This is a ratio of 60:1 in dollar terms. How long can investors continue to buy silver at the current ratios when the availability for investment is only 3:1? We are surprised that the price of silver has remained at such a depressed level compared to gold. Historically, the price ratio between gold and silver has been 16:1, when both were currencies. Today the ratio is 55:1, so what are the numbers telling us? We believe this is one of those times when smart investors will be well rewarded to “Follow the money.”

 
Tyler Durden's picture

2012 Year In Review - Free Markets, Rule of Law, And Other Urban Legends





Presenting Dave Collum's now ubiquitous and all-encompassing annual review of markets and much, much more. From Baptists, Bankers, and Bootleggers to Capitalism, Corporate Debt, Government Corruption, and the Constitution, Dave provides a one-stop-shop summary of everything relevant this year (and how it will affect next year and beyond).

 
Tyler Durden's picture

Silver To Gain 29% In 2013 - Analysts, Traders And Investors





Silver will rise as much as 29% to $40.25/oz, from $31.10/oz today, in 2013. This is based on the median estimate of 49 analysts, traders and investors compiled by Bloomberg. Global investment through silver backed exchange traded products reached a record 18,854 metric tons in November, or more than nine months of mine output, data compiled by Bloomberg show. Holdings are now valued at about $19.2 billion. Bullion dealers all over the world report robust demand for silver and there has been a shift in many Asian and Middle Eastern markets from gold to silver - due to silver's relative cheapness and undervaluation versus gold. According to Bloomberg, one of Singapore’s largest suppliers of coins and bars to retail investors, says sales tripled since October, part of a global surge in demand for silver that drove holdings to a record.

 
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