Russia Accumulates Gold As Consolidates Below Resistance At $1,644/oz

Tyler Durden's picture

From GoldCore

Russia Accumulates Gold As Consolidates Below Resistance At $1,644/oz

Today's AM fix was USD 1,624.00, EUR 1,308.94, and GBP 1,030.26 per ounce.
Yesterday’s AM fix was USD 1,615.25, EUR 1,306.84 and GBP 1,028.04 per ounce.

Silver is trading at $28.95/oz, €22.40/oz and £18.44/oz. Platinum is trading at $1,495.75/oz, palladium at $604.70/oz and rhodium at $1,025/oz.

Gold rose $4.80 or 0.3% in New York yesterday and closed at $1,620.70/oz – its highest level in three months (since June 19). Silver dropped than rallied back to $28.83 ending the day with a gain of 2.64%.


Gold Spot $/oz and 200 Day Moving Average -  August 2009 to Today - (Bloomberg)

Gold continues to be supported by the real risk of EMU break up and further weakness in the euro, dollar and other currencies. Gold continues to consolidate below its 200 day moving average at $1,644/oz. 

Technically, gold needs to close above the 200 DMA. Should this happen we could see quite significant short covering and more speculative elements on the COMEX may sense blood and come in on the long side in a more aggressive manner thereby propelling gold well above its recent trading range.

Platinum hovered just above the 2 month high hit on Monday over supply concerns from South Africa.  Lonmin is the world’s number three producer and accounts for 12% of global platinum output. Industrial unrest has spread to other platinum mines in South Africa which produces between 70% and 85% of the world’s platinum (different estimates).

44 people died after violence and a massacre at Lonmin’s Marikana mine, and the company is now waiting before firing the 3,000 workers as previously planned, as the mine owners realized it would escalate the situation.

Gold bullion prices inched up despite trading volume for US gold futures being on track to hit a 2012 low. Silver surged almost 3% and there was speculation that platinum's rally may have made some of the silver shorts close some of their massive concentrated short positions. 

Platinum has surged 7% in the last 3 sessions bringing its year to date gain to 7% outperforming gold and silver so far in 2012.

Russia continues to accumulate gold in its large foreign exchange reserves. The reserves include monetary gold, special drawing rights, reserve position at the IMF and foreign exchange.

Russia’s central bank increased its gold holdings to 30.1 million troy ounces as of August  1st, from 29.5 million troy ounces a month earlier, according to a statement published on its website today.

The gold reserves were valued at $48.7 billion at the end of last month, Bank of Russia said in a statement.

Russia's gold and foreign exchange reserves rose to $510.0 billion in the week to August 10 from $507.4 billion a week earlier, central bank data showed last Thursday.  Russia's gold and foreign exchange reserves were $498.6 billion at the end of 2011.

This means that Russia now nearly has some 10% of its foreign exchange reserves in gold bullion. 


Russia’s Gold Holdings From 1993 to June 2012 - (Bloomberg)

Since 2006, Russia has been gradually accumulating gold in order to diversify and protect from devaluation of their dollar and euro foreign exchange reserves and as part of a long term plan to position the Russian rouble as an international reserve currency.         

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NEWSWIRE
(Bloomberg) – Silver Imports By China In July Rise To 272 Tons
Silver imports by China were 272 metric tons in July, according to data released by the customs agency today. That compares with 223 tons in June. Platinum imports were 7.4 tons in July, compared with 6.1 tons a month earlier, data showed. Palladium imports were 1.97 tons, data showed.

(Bloomberg) -- IShares Silver Trust Holdings Unchanged at 9,733 Metric Tons 
Silver holdings in the IShares Silver Trust, the biggest exchange-traded fund backed by silver, were unchanged at 9,733.39 metric tons as of Aug. 20, according to figures on the company’s website.

================================================================================

                  Aug. 20    Aug. 17    Aug. 16    Aug. 15    Aug. 14    Aug. 13

                     2012       2012       2012       2012       2012       2012

================================================================================

Million Ounces    312.936    312.936    312.936    312.936    311.579    313.226

 Daily change           0          0          0  1,356,958 -1,647,762          0

--------------------------------------------------------------------------------

Metric tons      9,733.39   9,733.39   9,733.39   9,733.39   9,691.18   9,742.43

 Daily change        0.00       0.00       0.00      42.21     -51.25       0.00

================================================================================NOTE: Ounces are troy ounces.

(Bloomberg) –Bear Market In Tin Risks Global Shortage
Indonesia idled about 70 percent of tin-smelting capacity in its biggest producing region amid a three-month bear market, curbing the world’s biggest exports and setting the stage for a global shortage.


Cross Currency Table – (Bloomberg)

NEWS

Gold futures settle at highest since June - MarketWatch

Platinum hits 2-month high on South Africa supply fear - Reuters

Platinum Climbs to Six-Week High; Gold Gains as SPDR Assets Jump - Bloomberg

Low demand, high cost: platinum industry in for tough times - MSN

US drought will lead to inflation and higher food prices, says report – The Guardian

COMMENTARY

Is Apple Really Worth More Than The Sum Of Microsoft, Dell, Google, Facebook And HP? – Zero Hedge

Watch Out For A Silver Breakout Higher – Max Keiser

Keiser Report: Consumption-tration Camps – Max Keiser

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LawsofPhysics's picture

Gold and Oil sending a pretty clear message, even in this volume-less "market".  Just out of curiosity, what is the current computer trade to human trade ratio at?  I think ZH had a recent report on this, better look that up.  Best Buy a big sell this AM.  Couldn't have happened to a better bunch of middlemen.

GetZeeGold's picture

 

 

Best Buy a big sell this AM.

 

Word is they're changing the name to "Was Best Buy".

 

 

Paul Bogdanich's picture

Please do try.  Russia produces gold they do not buy it.  So if one produces 10,000 ounces and only sells 9,000 ounces then I suppose the headline "Russia accumulates gold" is technically accurate but still misleading especially if you happen to be a chump. 

firstdivision's picture

Seems to be that they are pricing in an Israeli strike on Iran.  EUR is high on heroin this AM.  Time to sell some EUR and paper commodities.

LawsofPhysics's picture

I agree.

Anyone else see this, Warren Buffet dumping his municipal bond bets big time.  Paging Whitney...

http://www.cnbc.com/id/48733981

fonzannoon's picture

Is that this is? Iran? It can't be an actual belief that crackhead Ben is coming to save the day right?

malikai's picture

Seriously? Russia ONLY has 30MToz? Wow.. Considering that's the US' future, scary..

AngryGerman's picture

but they have a couple of riot pussies in jail, that should count for sth

Illya Kuryakin's picture

I wonder who is disaccumulating it...

Monedas's picture

Probably Bernanke !    This would be a good time to audit US gold reserves !

francis_sawyer's picture

My theory is that all these 'accumulators' are merely following francis_sawyer around on canoe trips & picking up the pieces...

john_connor's picture

Gold at 1640?  WTI at $97, Brent at $114 and we are just starting hurricane season. 

GetZeeGold's picture

 

 

Football is starting next week also.....snap your chin straps.

 

LawsofPhysics's picture

Relax, there is no such thing as climate change, much less humans having anything to do with it < sarc off >  Seriously though, the sourthestern aquifers really need to be refilled, bring it.

Dr. Engali's picture

Technically it looks to me like there needs to be some more base building before it breaks out. If Ben disappoints at Jackson whole that may be the final shake out of weak hands.

fonzannoon's picture

Just my opinion but....no one owns gold. Are we talking about retail here? If so no one owns it. The retail guy bought it last summer and sold it last winter. Institutions? My guess is they own it and are not selling and buying more if anything. Central Banks? Maybe they are buying but at the rate they supposedly are buying you would think shipping companies would be a lot more busy. Unless it's still a bunch of bricks sitting in some vault with multiple owners. To debate the physical price is insanity. It's Libor until proven otherwise.

nowhereman's picture

Indeed, if everyone in Asia and the ME are buying, who's selling?

chubbar's picture

I agree with that assessment. Perhaps retail speculators sold last year but not the guy on the street because he has NEVER owned it. Out of the few hundred individuals I have personally asked, everyone from successful business owners, attorneys, doctors to plumbers, electricians, etc, etc,. Less than 1% actually owned any gold. We are a long fucking way from "retail" owning any gold to speak of. Hell, most of them have been attending gold parties to sell any gold they ever did have, mostly in the form of old jewelry.

Mark Carney's picture

Even then you think they would tell you?  Everyone knows that if you bought gold, the first rule is you MUST got boating.

SafelyGraze's picture

re: roadkill ..

http://www.facebook.com/TheModelsOfRoadKillTShirts

current "likes" = 882 (zh readers)

MsCreant's picture

Very spikie! $1637!

MFLTucson's picture

Throw your charts out, they are not relevent in a collapse.

tocointhephrase's picture

Bingo, PAPER TO ZERO BiTcHez

Monedas's picture

The end is near when "Gold 4 Cash" kiosks start opening up .... haven't seen any, so far !   SARC LEVEL / HIGH

youngman's picture

There have been a couple of articles on this for Portugal.....they opened up in mass....and the people sold all their jewerly to them.....to the point they no longer have anything of value to sell to survive......they are now pópping up in Italy.....and the people will sell to survive...

Monedas's picture

Those were "Cash 4 Gold" kiosks .... !      Maybe I hit on a good idea .... sell shitty gold (worn sovereigns etc.) in the malls for high prices .... buy more and more marketable gold (.99999 Maples) immediately with the proceeds .... discreetly off premises ?

Zwelgje's picture

Hi, I live in Holland and where I live every two weeks or so we get little flyers via postmail advertising "We want to buy your gold, then and then we're there and there....bla bla bla".

Don't know about Germany and the UK but this phenomenon is growing here. How big? No idea, but I know a owner of 4 jewelry stores and these days he makes more money with buying gold from little people and then selling it in Antwerp to bigger merchants then with selling jewelry. One month he had almost 30.000 euro's in profit....

Also interesting is that most Dutch cannot afford golden jewelry anymore. Silver jewelry is a bigger market these days.

My two cents.

 

 

AngryGerman's picture

forget gold, buy tulips. worked great once before for you guys.

Yperkeimenos's picture

The same here at Greece,during the last 2 years or so in particular,Gold and Silver pawn shops have started appearing like mushrooms.They are advertised on TV.magazines,newspapers and pretty much everywhere else you can think of. It's a new phenomenon to us Greeks, as the last time we had so many of them was more than half a century ago when people, in these days, where using,besides the Drachma, British Gold Sovereigns as well for their transactions,mainly due to high inflation of the national currency.

MFLTucson's picture

Russia, Asia and Latin America continue to accumulate Gold while the US continues to accumulate debt and that in and of itself is reason enough to get rid of this train wreck in the Whaite House.

youngman's picture

Anyone buying today....is not selling for the next few years....never selling...they are buying for security....not for some price pint to make a quick buck...so from weak hands to the strong....its the paper gold guys that are going to get squeezed .....IMHO....when it leaks that all that gold in the so called depositories is no longer there......oops.....boy that will be a fun day....just think...if you are Germany.....a big country...stong and secure now...why would they want their gold in NYC...and not back at home....I think they will pull it back....but I am sure there are alot of bnakers not liking that idea

Monedas's picture

BTFD ?   Buy The Fucking Spike .... BTFS !

fuu's picture

It's still the dip till $2000.

Anasteus's picture

This is an interesting situation. I think the following is taking place...

Gold should likely keep lower prices in order for the western banks to pile up more gold. Therefore JPM & Sons will likely continue artficially manipulating the prices as long as enough gold is acquired for the best possible prices. The background idea is to cummulate as much collateral Class A as possible. However, the problem are BRICKS countries that rapidly has gone on to buying too, which naturally increases the price. The two opposite directions are being clashed; gold manipulators would like to keep the prices lower but risking smooth outflow of gold to the East. However, once enough gold is collected, the incentive to manipulate the price could vanish for two reasons a) to make BRICKS buying more difficult b) to increase the value of gold collateral. It's possible that the gold price will soon soar and will not further be subject to manipulation. In such a case banks could be perfectly 'backed' by real collateral. Lifting up gold ounce to $10.000-$15.000 could surely help increase the value of real collateral 'backing' the debt. If I am right, we are witnessing the last monts (or weeks) of affordable gold prices.

AngryGerman's picture

dont care who is BEHIND them, i just have the feeling that there are a couple of russian prison guards INSIDE them right now

bushwarcrime's picture

45 dead miners....helllo...not a peep.  Rest in Peace.

WilliamShatner's picture

Gold, comrade bitchez!