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The Waiting Game
From Gold Core
The Waiting Game
Today's AM fix was USD 1,614.75, EUR 1,311.95, and GBP 1,032.78 per ounce.
Yesterday’s AM fix was USD 1,622.75, EUR 1,323.29 and GBP 1,034.46 per ounce.
Silver is trading at $28.92/oz, €22.78/oz and £17.94/oz. Platinum is trading at $1,414.20/oz, palladium at $587.70/oz and rhodium at $1,100/oz.
Gold dropped $8.80 or 0.54% in New York yesterday and closed at $1,613.30/oz. Silver edged down as low as $27.89 and ended with a loss of 0.92%.
Cross Currency Table – (Bloomberg)
Gold was still hovering in a narrow range on Wednesday, as investors await monetary policy decisions from the US Federal Reserve (1815GMT) and the European Central Bank (tomorrow), which will determine the direction of markets.
A Fed decision to launch QE3 would increase the yellow metal’s appeal as an inflation hedge and bolster prices.
US house prices increased for their 4th month in a row suggesting that the US housing market recovery may be underway which dampened further hopes of any immediate easing in the US Fed’s monetary policy.
The markets are playing a waiting game and investors are cautious. Thursday’s ECB policy meeting will determine if President Mario Draghi will have the backing he needs to embark on significant policy changes to rescue the region’s financial woes.
Yesterday, German Finance Minister Schauble said in an email response to a newspaper, “The rules of the European Stability Mechanism don’t foresee a banking license to allow refinancing at the European Central Bank”. Schauble’s comments fell like a penny in a wishing well that rippled to curb the market’s enthusiasm. Since Draghi’s initial comments to “do anything it takes” gold has increased by nearly $50/oz.
Gold Prices/Rates/Fixes /Volumes – (Bloomberg)
China's PMI (Purchasing Managers' Index) dropped to an 8 month low of 50.1 in July from 50.2 in June, showing further contraction. It shows that the global economic slowdown is not just contained to the shores of the Atlantic.
Since March gold has not been able to hold its 100 day moving average for more than 3 days and closed just under it again yesterday.
A boost from the US Fed will allow more people to look at gold as an investment alternative. The average Joe public still doesn’t have a position to hedge against other investments. When QE begins ETF inflows will increase, physical buying will return after monsoons in Asia, the Indian government get’s their power grid in order, and it will be the brave early adopters that could be rewarded.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
NEWS
Gold Gains For First Day In Three On Prospects Of More Stimulus - Bloomberg
Gold steady as investors eye central bank decisions - Reuters
Gold futures rebound in electronic trading - MarketWatch
COMMENTARY
Euro Area forecast by Standard and Poor – True Economics
China PMI Misses And Prints Lowest In 8 Months With 10 Of 11 Sub-Indices Contracting – Zero Hedge
U.S. Stocks Decline After German Comments on Banking License – San Francisco Chronicle
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I thought house prices rising was just a sign that greed was taking hold again vs a recovery. Silly me
Just wait for it dude.
I'm not sure what rising house prices mean, but it's pretty ignorant to think getting the best price you can when selling your home is greedy. Maybe you would rather have King Barak and his minions in the gov. set a "fair" value for your home?
Research "The Anatomy of a Bubble".
Nothing goes straigth up or down...
This guy Larry Meyer on CNBS is a fucking shaky loon! Now we see how we got where we are with these idiots in charge a few years ago. When will it all end?
Here's a clue...
http://i50.tinypic.com/313jhhy.jpg
QSN is still running gold on the public gateway. Beware, paper longs. Physical buyers, hopefully a blue light special coming soon!
https://www.quantsig.net
...Oh dear, thar she blows.. Sorry long ETF muppets, they said we'll start without you today.
It just makes no sense to me at all.
Why on Earth would Bernanke come in with another round of QE with the stock markets where they are now and the figures over the last few days at least looking reasonable? And yet everyone ad their uncle seems to be looking for more QE.
And what about that 60,000 e-mini short last night right on the close? Weird.
DavidC
And what about that 60,000 e-mini short last night right on the close? Weird.
Boy.....that is weird!
David if I am wrong about this and they do QE3 today I won't post for 2 weeks. But there is no freaking way they do QE today. None. Everyone may be looking for it. Here is the trend though as I see it. He comes out and says no QE. Metals get annihilated. Stocks sell off intially but that zero interest rate pledge keeps the dividend payers afloat. The dividend payers drag up the indexes. By the end of the day we celebrate how the market did not need qe to keep climbing. Just my 2 cents.
agree.. no way.. you want to see 100+ pb crude. give em qe . That gets the sheep awake and it doesnt get presidents re elected. If there is Romney would be a fool if he didnt call out the Fed as influencing elections. Not this close.
You actually think PEOPLE are going to elect a President in November?... or that it matters who that is anymore?
163K ADP jobs doesn't help the case for New QE today. After the numbers I've seen in the last couple days, I think QE today would rattle the markets.
fonzannoon,
Interesting comments, thanks.
I think that Bernanke is between a rock and a hard place though. With Draghi's comments last week and the hopium of QE, we've seen 500 points on the Dow. If nothing is done today, we're going to see stocks tank, I feel.
DavidC
Interesting.....
South Carolina councilman busted in multi-million dollar silver scam by CFTC.
http://www.mineweb.co.za/mineweb/view/mineweb/en/page32?oid=156210&sn=De...
I wonder if this guy had anything to do with the South Carolina report that looked into investing in gold and silver for their pension funds and concluded:
"Similar to other commodities, the value of gold and silver is determined by supply and demand as well as speculation. The Federal Reserve, The London Bullion Market Association, JP Morgan Chase, and HSBC Holdings have practised fraction-reserve banking and enganged in naked short selling causing artificial price suppression."
Look out JPM...Bart Chilton and crew are coming for you too. /sarc
Bernak: Attention audience, I have a giant Bazooka. I have used two other bazooka's but this one is different. It is shiny and bigger and when I point and shoot it the enemy of a strong dollar and falling prices will have no chance. Oh yeah also it willl create jobs and that other shit you guys blab about. Anyway I just came here today to tell you I have it and will use it. I did not bring it and don't ask me about it, just trust me that I have it.
Audience: Please Mr. Bernak please can you please shoot the bazooka? Please! We need you to shoot the bazooka! At least tell us more about it!
No! Oh yeah by the way I am keeping interest rates at 0% until 2017!
Audience: YAY YAY (smashing into each other knocking off their helmets and spilling their bowls of rice pudding)
fonzannoon,
Nice one!
DavidC
Let the liar loans begin!
I'll take those over debtors prisons anyday.....just don't make me go to France. Please.....I swear I'll do anything.
Gold rallied before draghi statement. It is only up $10 since his statement. A real head scratcher.
What I am looking for from the Fed today is any hint or mention of some connection with Europe.....the "we will help"..."supply liquidity"..."open a window"....blah blah blah kind of statements that to me will mean ...the Fed will bail out Europe too....I think they are first...
and yes..what about those 60,000 E-mini shorts sold last night???????