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Gold Rallies 1.2% On Yellen Testimony - Up 7% YTD

GoldCore's picture




 

Today’s AM fix was USD 1,282.75, EUR 938.09 and GBP 780.83 per ounce.
Yesterday’s AM fix was USD 1,273.50, EUR 933.86 and GBP 776.95 per ounce.   

Gold has rallied another 1.2% today and touched resistance at $1,294/oz during Yellen's first testimony to Congress. Gold is testing resistance between $1,294/oz and $1,300/oz. A close above $1,300 should see gold quickly rally to test the next level of resistance at $1,360/oz. Support is at $1,240/oz and $1,180/oz.


Gold in U.S. Dollars, 6 Months - (Bloomberg)

Gold for immediate delivery rose a fifth day and is headed for its longest rally since August before Federal Reserve Chairman Janet Yellen addresses Congress today. Chinese demand continues to be very robust and volumes for spot bullion of 99.99 percent purity on the Shanghai Gold Exchange (SGE) climbed to 25,725 kilograms yesterday, the most since May.

Gold has climbed 7% this year in dollar terms amid currency turmoil in emerging markets and stocks falling sharply globally. $1.63 trillion has been erased from the value of global equity markets.

Gold is over 10.5% higher in terms of the Dow Jones Industrial Average year to date. Gold’s properties as a safe haven asset and important diversification are being seen again.

Gold fell 24% last year after rising 70% from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system.

Janet Yellen will today deliver her first testimony to Congress since being sworn in as Federal Reserve chairman. Yellen delivers her first semi-annual monetary-policy testimony as investors weigh the pace of a slight reduction in quantitative easing against the recent poor U.S. economic data.

Worries about weak U.S. labor market data had some investors betting that Federal Reserve Chair Janet Yellen may signal a pause in the central bank's efforts to wind down its extraordinary bond-buying programme.

There is an expectation that Yellen is going to be dovish, especially given the recent weakness in U.S. employment numbers. However, Yellen could surprise markets by adopting a more hawkish tone regarding monetary policies in the very short term. If she does, then expect a further bout of risk-off and more weakness in stock markets.

However, it is important to focus on actual monetary policy which remains very loose rather on the mere words of the new Fed head.

Find out why Singapore is now one of the safest places in the world to store gold in our latest gold guide - The Essential Guide To Storing Gold In Singapore 

 

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Tue, 02/11/2014 - 18:44 | 4425514 MeelionDollerBogus
MeelionDollerBogus's picture

trend: ln(silver) = 19/12 + gold x3/2635

given that, silver could be 1290.62 x3/2635 + 19/12 = e3.0527 = 21.173 / oz which is 4.8% under what's happened. math from this curve http://flic.kr/p/f17z1s

Tue, 02/11/2014 - 19:03 | 4425618 Gankfest
Gankfest's picture

lol @ Yellen!

Tue, 02/11/2014 - 18:02 | 4425326 Australian Economist
Australian Economist's picture

My miner are up 50-80% since Jan 1st. Is it too late to double down?

Tue, 02/11/2014 - 17:19 | 4425150 Joenobody12
Joenobody12's picture

Gold rise has shit to do with Yellen. No one expect any surprises from her so dont attribute the rise to her neither. Could it be that everyone now see the Dear leader is naked and the piper wants his pound of gold back. Those of us loaded up on GLD calls last month are happen as pigs rolling in shit.

Tue, 02/11/2014 - 17:12 | 4425126 lakecity55
lakecity55's picture

Don't foeget Ag; I am stocking up on Silver Pandas...

Tue, 02/11/2014 - 17:00 | 4425079 AngelEyes00
AngelEyes00's picture

When I woke up and saw CNBC ticker with dow up close to 200 pts, I thought Yellen had blinked deciding to untaper.  Then I read she doubled down on continuing taper.  Is it investors fleeing EM jumping in late in the stock game?  In any case I'm trying to figure out what the heck happened.  Gold goes up, I get that, but stocks?!

Tue, 02/11/2014 - 17:43 | 4425252 fijisailor
fijisailor's picture

Yes

Tue, 02/11/2014 - 16:45 | 4424977 Ham-bone
Ham-bone's picture

According to St. Louis Fed, the Monetary Base has halted it's year long $100 B/mo growth and as of Jan, added just over $10 B/mo...bout to rollover and go negative???  Big change in trajectory since November...prior to taper $10B (now $20B/mo taper)???  Somebody draining the pool???

http://research.stlouisfed.org/fred2/series/AMBNS

click on 1yr or 5yr chart to see big change

http://research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=AMBNS&s[1][range]=1yr

http://research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=AMBNS&s[1][range]=5yrs

During periods since '09 when the monetary base was flat, equities have been down / flat and then lifted by anticipation of QE / QE execution.  If this pattern holds (particularly w/ record leverage) stocks bout to get clobbered.

Also notable is that golds big upside runs happened during the flat periods or QE runoff periods prior to new QE announcements...OR said otherwise, is QE bad for gold...or is QE simply the short term agent of manipulation???

Tue, 02/11/2014 - 17:26 | 4425184 LawsofPhysics
LawsofPhysics's picture

Two words for you consideration; reverse repo.

Boom motherfucker.

Tue, 02/11/2014 - 18:43 | 4425197 Ham-bone
Ham-bone's picture

Pool is being drained well in excess of tapering...this is an engineered demolition what w/ the record leverage, record valuations

AND NOW GERMANY (BUBA) GIVES UP ON REPATRIATING THEIR GOLD FROM FED...just get it to us whenever is convenient for you...HOLY SHIT?!?

http://www.ingoldwetrust.ch/bundesbank-changes-gold-repatriation-schedule

Tue, 02/11/2014 - 16:30 | 4424967 Save_America1st
Save_America1st's picture

Gold (paper) is up a cool 100 since Dec. 18th.  Silver (paper) up 1.00 since then.  I don't really give a shit what the paper is going to do until it finally crashes and defaults.  I actually hope it goes lower again so that the only sane people in this world can still trade our worthless fiat in for as much physical PM's as we possibly can. 

I'm in it for the long haul, so I can wait a very long time before I start to pay attention to the bullshit fiat price of PM's in terms of value. 

My mining stocks?  Been seeing green like crazy since after the first of the year.

Peter Schiff destroys the hopeless CNBS bitchez on gold today: 

https://www.youtube.com/embed/ePBDeRDADmY

Tue, 02/11/2014 - 16:18 | 4424915 Sufiy
Sufiy's picture


Gold Goes Vertical, Breaks $1,290 During Janet Yellen Testimony


  Gold goes vertical with short squeeze in action after the $1,270 level today. The highest print was $1,292 so far and the real game of music chairs will be started after $1,300 and tomorrows headlines. The big boys are loaded as well as flood of articles positive for Gold in WSJ, Reuters and Bloomberg can indicate. General public is still chasing the last Bubble in the general equites and GDX - ETF with Gold miners is breaking above 200 MA today. The real reason for the run are actual Chinese numbers from Koos Jansen report of 2,181 t of Gold consumed in China in 1213 and the coming shortage of physical Gold. http://sufiy.blogspot.co.uk/2014/02/gold-goes-vertical-breaks-1290-durin...

Tue, 02/11/2014 - 16:12 | 4424880 fijisailor
fijisailor's picture

I think it would be very helpful to not only show physical demand in China but also the amount in ETF longs that have been added.  

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