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Gold Surges 1.2% On Poor Jobs Numbers Prior To Being Beaten Lower ...

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Today’s AM fix was USD 1,260.00, EUR 928.72 and GBP 771.16 per ounce.          

Yesterday’s AM fix was USD 1,258.50, EUR 930.64 and GBP 772.42 per ounce.  


Gold fell $0.50 or 0.04% yesterday to $1,257.40/oz. Silver rose $0.09 or 0.45% to $19.94/oz.


Gold is marginally higher again today in all currencies and heading for a higher weekly close of 1.6% in dollars.

The poor jobs number today saw gold surge from a low of $1,256.55/oz to a high of $1,272/oz prior to being beaten lower back below $1,258/oz. This is the second incident of peculiar trading on the COMEX this week which is fueling manipulation suspicions. The bad jobs data saw treasuries climbed and stocks fall, prior to also reversing course.


Gold in U.S. Dollars, 5 Day - (Bloomberg)

Gold eked out slight gains yesterday after the ECB and BOE kept rates at 300 year lows. ECB President Mario Draghi made more dovish statements, saying that the ECB “will maintain an accommodative stance of monetary policy for as long as necessary” which was gold supportive. Draghi reiterated that the bank may take more accommodative action if money-market turbulence resumes.

Gold is 4.5% higher this year on safe haven demand due to concern that a slump in emerging markets would slow global economic growth affecting global financial markets. Almost $3 trillion has been erased from the value of equities worldwide so far this year.

Global markets are now dependent on the drug that is cheap money and any reduction in money printing and debt monetisation will likely lead to market turmoil and economic dislocations.



Silver in U.S. Dollars, 5 Day - (Bloomberg)

Silver posted the longest rally since August, extending a 2014 rebound of over 3% this year as turmoil in emerging markets and slowing economic growth reignited demand for haven assets.

Silver has rebounded 9.7% from a 34-month low on June 28 as physical demand increased. Sales of coins by the U.S. Mint almost quadrupled in January, while gold purchases surged 63%.


Gold traders, analysts are bullish on gold again for next week after global equities fell to nearly a 4 month low this week. The Bloomberg gold survey for next week showed that 17 were bullish, 14 were bearish and 2 were neutral.

Chinese store of wealth buyers return from a week long Lunar New Year holiday which should support physical demand. China became the world’s largest  gold buyer last year.

Perhaps more than any other financial market, the gold market is subject to a huge amount of opinion, much of it emotional, subjective and not based on facts. The empirical evidence seen in research, both academic and other independent research, is often ignored. As is the historical record and the experience of people throughout the world in recent years and throughout history.

Simplistic analysis and sound bites abound. It is important to focus on the data and the facts and today we have looked at the academic research pertaining to gold.

There is a significant and growing consensus amongst academics, independent researchers and asset allocation experts that gold is a hedging instrument and a safe haven asset. Thus, many financial professionals now believe that gold should form part of investment and savings portfolios for reasons of diversification and financial insurance

Indeed, there is now a large body of academic and independent research showing gold is a safe haven asset and showing gold’s importance in investment and pension portfolios. This allocation is in order to both enhance returns but more importantly reduce overall volatility.



Gold and S&P 500, 1999 To Today - (Bloomberg)

The importance of owning gold in a properly diversified portfolio has been shown in numerous academic papers. It has  been shown in independent research by the asset allocation specialists, Mercer Consulting and Ibbotson Associates. It has also been shown by consulting group, New Frontier Advisors and by leading international think tank, Chatham House.

Gold has protected people throughout history from  inflation and currency debasement. The historical record also shows how gold has protected people from stock and property market crashes, and from asset confiscation.

John Maynard Keynes is reported to have said, 'When the facts change, I change my mind. What do you do, sir?'

The facts regarding gold have changed in recent years. Since the global financial crisis began in 2007, gold has outperformed most assets and again shown itself a safe haven. The data and research on gold over the long term is confirming this.

Our latest report, ‘Gold Is A Safe Haven Asset‘ looks at the academic and independent research in more detail.

Check out 'Gold Is A Safe Haven' Youtube intro video here

 

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Fri, 02/07/2014 - 17:06 | 4413097 bigmango
bigmango's picture

Paper is not gold as anyone with a clue knows, so follow the people of the east, and buy physical as the TPTB offer this rare gift to the shrimps. If you can trade paper, bitcoins, seashells for hard assets you do it and take advantage of the manipulation instead of complaining about it. Then promptly take a boat trip on a stormy day with the usual sad consequences. But don't be too anxious for the inevitable reveal of physical gold's true value. That will be accompaned by the economic shitstorm that many know is lurking on the horizon or nearer.

Fri, 02/07/2014 - 20:22 | 4413876 Squid-puppets a...
Squid-puppets a-go-go's picture

its all just noise until either the comex vaults are depleted or someone gets arrested for the manioulation

Fri, 02/07/2014 - 15:23 | 4412769 stant
stant's picture

Gold inching up most likely because of tanks and the fulda gap go together so well

Fri, 02/07/2014 - 16:06 | 4412912 misterkel
misterkel's picture

Check out Gold Wars: Battle for the Global Economy on Amazon - getting good reviews.

Fri, 02/07/2014 - 13:46 | 4412225 FieldingMellish
FieldingMellish's picture

Gold is not going to do anything when the Chinese return from holidays. It hasn't before, why should it do anything now? If it cannot break this fierce resistance in the $1260-1280 are it is destined for MUCH lower levels as faith in the yellow metal disappears. Let's face it, only the Comex controls the price. Do you want fair market pricing? Get rid of the Comex, until then its a game.

Fri, 02/07/2014 - 14:00 | 4412359 El Hosel
El Hosel's picture

http://finviz.com/futures_charts.ashx?t=GC&p=d1.... Gold is Flat, has been Flat.   The 1%  "surge" does'nt mean shit. Wake me up when its up $30, 40$, $50 on a quick spike.

Gold is obviously on a very short leash for now... Its being Jobbed just like your numbers.

Fri, 02/07/2014 - 14:11 | 4412427 FieldingMellish
FieldingMellish's picture

What about when it goes down $30, $40 or $50 on a quick spike (which history shows is FAR more likely, thank you COMEX)?  Do you want to be woken up then too?

Fri, 02/07/2014 - 13:06 | 4412096 Son of Loki
Son of Loki's picture

The CBs hate the PMs.

Fri, 02/07/2014 - 12:59 | 4412062 fijisailor
fijisailor's picture

"Indeed, there is now a large body of academic and independent research showing gold is a safe haven asset and showing gold’s importance in investment and pension portfolios."

As usual for these guys. No distinction between physical and rehypothecated paper. How do they plan to add an "in hand" asset to a pension portfolio?

Fri, 02/07/2014 - 12:58 | 4412045 lasvegaspersona
lasvegaspersona's picture

As long as one ounce of gold allows for the production of 50+ paper ounces the price of gold will remain controlled. The physical is the captive of this paper market.

Fri, 02/07/2014 - 12:54 | 4412037 lasvegaspersona
lasvegaspersona's picture

Gold DERIVATIVES surge....gold just sits there

Fri, 02/07/2014 - 13:09 | 4412123 Boris Alatovkrap
Boris Alatovkrap's picture

Amazing is volatility of paper.

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