"Print Yellen Print" - Meanwhile Russia Warns U.S. Sanctions "Unacceptable", Threatens “Consequences”

GoldCore's picture

Today’s AM fix was USD 1,346.00, EUR 967.16 and GBP 809.72 per ounce.  

Yesterday’s AM fix was USD 1,362.50, EUR 979.37 and GBP 820.49 per ounce.      

Gold extended losses to a third session today. Gold has fallen from the six month high of $1,391.76, touched earlier this week on the deteriorating geo-political situation between Russia and the West. Traders have taken profits as tensions have eased somewhat, in the short term at least.

Gold should be supported by the deterioration in relations between the U.S. and Russia. Russian Foreign Minister Sergei Lavrov told U.S. Secretary of State John Kerry that Western sanctions over the Crimea dispute were "unacceptable" and “will not remain without consequences."


Putin said he did not plan to seize any other part of Ukraine, and Kerry later cautioned that any incursion into other parts of Ukraine would be an "egregious step" and a major challenge for the international community. Geopolitical risk shows the importance of owning gold as a hedging instrument and safe haven diversification.

Traders may have been hesitant to go long gold, ahead of the meeting of the Federal Reserve.  The meeting is the first presided over by Fed Chair Janet Yellen.

Yellen said the Fed could keep interest rates unusually low even after the U.S. job market returns to full strength and inflation rises to the central bank's target. Yellen also dropped a set of guideposts it said it was using to help the public anticipate when it would finally start bumping overnight borrowing costs up from record low levels at zero, including the employment measure. It said, however, that dropping a promise to hold rates steady "well past the time" the U.S. unemployment rate falls below 6.5 percent did not indicate any change in its policy intentions. Rather than relying on unemployment and inflation thresholds to guide expectations, it said it would use a wide range of economic indicators.

But what stood out in the Yellen's statement was her embrace of easy money policies even after the Fed achieves its goals of full employment and 2% inflation.  Stocks rose on the news as expected. This is bullish for gold, despite weakness in recent hours.

The bottom line is that the Fed is set to maintain ultra loose monetary policies in the form of continuing debt monetisation and near zero percent interest rates. Yellen basically confirmed today that she is going to "print baby print".

Reuters reports that dealers of gold bullion in Singapore and Hong Kong, noted a slowdown in physical demand in recent days. Premiums have fallen and domestic gold prices in China are trading at discounts to cash gold.

Concerns about a spate of Chinese corporate bond defaults and the shadow banking system in China should support gold but demand appears to have abated somewhat in recent days. Although it may be best to wait to see the monthly import export data prior to writing off Chinese demand just yet.

Chinese defaults and problems in the Chinese financial system will be very gold supportive as the Chinese use gold as a store of value and financial and systemic risk will lead to safe haven demand.

Owning physical bullion coins and bars in segregated, allocated accounts in Singapore is now one of the safest ways to own precious metals. Protect and grow your wealth by reading The Essential Guide To Storing Gold In Singapore

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luckylongshot's picture

This grows steadily more bizarre. To date the US has stolen Germany's gold then spent $5 Billion funding a coup in the Ukraine. Then when the EU wanted to support Klitschko the US told them to get fucked and installed a Nazi linked group. Then when Russia moved to protect its interests the US pressured Germany to join in a move to put sanctions on Russia, knowing Germany is dependent on Russian energy. Looking at all this one could argue that what we are seeing is Germany being set up to take a fall by the US...I hope I never have friends that behave like the US does to Germany.

Walt D.'s picture

The real lesson to be learned here is that "the little guy" does not matter and democrasy is dead. 97% of the people of Crimea (Russian by heritage) vote to go back to Russia. What right does the EU or the US have to tell them that they can't do this?  99% of the US adult population told Congress that they did not want Wall Street and Big Banks bailed out. Congress ignored them and went ahead anyway. So much for government of the people for the people by the people. 

The Declaration of Independence, the Constitution and the Bill of Rights are now just historical documents that can be ignored whenever the Congress or the Administration or the Supreme Court chooses to do so.

The US had a civil war over the right to secede from the Union. Now, Congress has passed the 21st century equivalent of "The Runaway Slave Act" that stops people from moving to another country and cutting off ties with the US - the US government still owns you - establishing freedom by renouncing citizenship is a lenghty process. 

The US mainstream media make the USSR newspaper Prava look like the voice of independence.

logicalman's picture

So, one bunch of self-interested psychopaths has pissed off another bunch of self-interested psychopaths....

Nothing new there.

Trouble is, the way they decide to sort this out might have serious consequences for large numbers of human beings who just want to be left alone to get on with their lives unmolested.

Government is THE PROBLEM.

I know, I'm repeating myself, but it's important.

FieldingMellish's picture

LOL! So much for Chinese demand. Paper covers rock.

Libertarian777's picture

Putin only needs Crimea for the Black Sea fleet.

If he was smart, as he has proven himself to be, he will let Ukraine join the EU / West. They will become ever more bankrupt even faster. $38bn required? If the US and Europe want to fund Russian oligarchs by paying Ukraine's gas bill, Putin will take your money.

Where does everyone think the $1bn the US is giving is aid is going to? DIRECTLY to Russia. So we're funding the very military we bemoan.

teslaberry's picture

while i mostly agree, the only wrinkle for this in the future for putin is the potential rapid development of natural gas fracking fields all over eastern europe poland ukraine germany romania. 


the rapid fracking rollout is a huge ace up the wests sleave. american natural gas workers have a surplus of experience and manpower to export to anywhere, they can move to eastern euopre and in just a few years create tens of thousands of producing wells. 


the time to put that kind of industrial plan in place would be when the commoditiy bubble starts popping in china and steel and other resources are cheap. 

of course when putin sees this, he will probably already be on his way out of dictatorship of russia and the new leader will probably be an american secret stooge, or just a dumb moron, ----either way he is strategically unlikely to be a master chessman like putin. and even if he is , he will inherity an even more difficult situation; being squeezed by the west more or put his entire economic fate in the grip of one super-power china. either way, russias' balls will be squeezed  more and more.

the feedback loops of regional satrap war, production ( sustainable domestic consumption ) , monetary war, and trade competition (exporteable production)  all operate over long periods of time.

it's not possible to put together a complete picture without considering the full scope of possibilities in all four areas. 



teslaberry's picture

haha, you think putin needs to take over 'the rest' of ukraine?


the west is obviously to blame for pushing yuchenko into the grasp of putin because the west is broke and trying to squeeze every last drop out of ukraine. 

the west will continue to do the same thing now that they 'have' ukraine back in their grasp. 

they know this, and therefor they will encourage neo-natzi'sism in order to supress dissent amonst the increasingly poor ukrainians. this will be a model for political experimentation in spain and greece and even italy. you think mussolini just happened?

no----the ukranians are now a test bed, and many of the pro-russian ukrainians know this and have no allegiance to the west. 


they will help putin spy and undermine ukraine. he won't need to 'take' it. he will get it back the same way he got it with cutting a deal with yushenko. europe is broke and the u.s. is as well. time is on putin's side. he just needs to wait. 

all the financial shenanigans and political conspiracies being hatched up to further weaken an already puny and weak , yet nuclear armed russia, will be of less and less use. 

politics is not a linear game. it is a non-newtownian fluid. and the harder you push a weak desperate nation, the more difficult it becomes to get what you want. adn eventually the aggressor must attempt a conquest. the u.s. remains in no position to conquer russia due to her nuclear armaments. for she would lose far more than russia could lose in the way of losing power. 

a u.s. russia nuclear war leads only to one clear winner; china. 


so, perhasps------ukraine's utility to the west will become just as helpful as the greeks spaniards and italians who are increasingly agitating for secesiion from the EU. how does that help? the united states of europe can only happen with a pan european fascist movement. the first totalitarian tolerance movement, replete with massive waves of violence by masked storm-troopers, ( streumbrueling ) defending multi-culturalism by smashing and killing people. 

it's just hard to fathom that really happening. europe's diversity truly is its achilles heel. and ukraines precarious alliance with 'europe' just adds weight on this heel. 

althought----perhaps the u.s. and europe just pulled off some amazing stroke of conquest and I just don't know the whole henry kissinger deep truth about what went down.




basho's picture

the biggest 'maybe' here is your perceived (or as i perceive it) view that the west is on top of things in Ukraine.

eg "the west will continue to do the same thing now that they 'have' ukraine back in their grasp. " i don't think i'd bet a beer on this statement. checkers is not chess.

what you see is not always what you get. :)

teslaberry's picture

i said it was clear the west would encourage fascism in the ukraine as they try to grasp tighter that which they are losing---which is their ability to fund ukraine and run a trade deficit with her. 

same as greece same as italy. but the ideology of multi-cultural tolerance will not hold. and if the oligarchs cannnot back a  losing fading ideology (multi-culturalism) they will back a winning one ( outright neo-nazi fascism )  

Ifigenia's picture

How could Spain, Greece or Italy break from EU if they are controlled by US military bases?

moneybots's picture

"The bottom line is that the Fed is set to maintain ultra loose monetary policies in the form of continuing debt monetisation and near zero percent interest rates. Yellen basically confirmed today that she is going to "print baby print"."


Where's the printing? The FED is a lender of debt.

WMM II's picture

"Owning physical bullion coins and bars in segregated, allocated accounts in Singapore is now one of the safest ways to own precious metals."






pupdog1's picture

It's just been reported that Corzine has been spotted on his way to Singapore.

He was overheard saying "If the account's aren't segregated, it's just no fun."

disabledvet's picture

"our sanctions become their sanctions."

and this began how again?
"because we all have a latent hostility within and wish it to be expressed without"?
you all can take your great joys and pleasures on "taking sides" here.

that still makes all of you not only nothing but the all time greatest losers ever...but absolutely knowing you're all the greatest all time losers ever and "just gonna be that way."

doesn't appear we have a "break through the hate" here as of yet.
"i will learn you" however....

Primal's picture

Spectre, SHTF or not I wouldn't want it there.


Johnny Cocknballs's picture

I'd love to see Vlad call a press conference, solely to tell the world that he'd like to invite John Kerry to suck his balls.


Walk to the podium, say that shit, then walk away.

SilverRhino's picture

I'd pay real silver to watch that moment

Fishhawk's picture

Da Boyz are at it again concerning gold, as the moderate "Traders may have been hesitant to go long gold, ahead of the meeting of the criminal cartel  Federal Reserve."   Cartel drive-by shootings of the gold price have been mandatory during all Fed meetings for a while now.  Meanwhile, the ROW continues to buy gold at every chance. Why do you suppose the elite want to discourage US citizens from embracing real money, when every other population on the planet understands that the US dollar/military hegemony being practiced by European white men at the IMF is in failure mode, long past its Minsky Moment?  The abject failure of Obummer's strategy of regime change, and complete embarassment at being played by Putin should have been a wakeup call for US citizens, yet gold drops 2%.  More directed history for US lamestream media consumption.



pashley1411's picture

The last 2 investors who were counting on the US returning to a normal currency regime just threw themselves off a bridge.

Spectre's picture

When the SHTF finally comes home to roost, I sure as Fuck don't want my hard metals bullion 9,000 miles away in Singapore.  Just stupid on many levels.

Buck Johnson's picture

I know, because they will take it.

BraveSirRobin's picture

Obama is Putin's bitch

Obam is Reggie Love's bitch