Gold & Silver Digest: 6/6/13

Adam Taggart
By Adam Taggart on Fri, Jun 7, 2013 - 9:51am

The Gold & Silver Digest contains headlines of stories that members of this group deem relevant and/or interesting to precious metals enthusiasts.

If you have articles to submit for the next digest, please email them to me by clicking here.

6/07/13 10:47 AM EST US close metals price quotes from Finviz

Reuters: Gold rises 1 pct on dollar tumble ahead of U.S. payrolls

Gold rose 1 percent on Thursday as the dollar fell sharply against the yen and the euro on fears of disappointing U.S. jobs data the next day.

After trading mostly flat, gold suddenly turned higher at midday in New York as investors sold long positions on the greenback - or bets that the U.S. currency will rise - ahead of Friday's all-important U.S. nonfarm payrolls numbers.

Gold has been under pressure recently on a resurgent dollar driven by expectations that upbeat data would prompt the U.S. Federal Reserve to taper its $85-billion-per-month bond-buying program.

Bloomberg: Gold Traders Most Bullish Since Bear Market Began: Commodities

Gold traders are the most bullish since before the bear market began two months ago after a retreat in equities from an almost five-year high and a weakening dollar spurred demand for bullion.

Nineteen analysts surveyed by Bloomberg expect prices to rise next week, with eight bearish and six neutral, the largest proportion of bulls since March 22. Global stocks that rose to the highest since June 2008 on May 22 reached a six-week low yesterday amid mounting speculation about whether the Federal Reserve will taper stimulus. The U.S. Dollar Index, a measure against six currencies, slipped to the lowest in three months.

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Coiling

Non Farm Payrolls tomorrow.

Gold and silver popped today as the Short Yen-Long Dollar carry trade unwound, and traders sold Dollars and bought Yen.

I include the West Texas Intermediate Crude chart below. As you can see it is tightening into a trading range I like to call a 'coiling pattern.'

Watch for a break out in either direction.

The Economic Times: Ask customers not to buy gold, but invest in financial assets: FM to banks

Finance Minister P Chidambaram has asked banks to advise their customers not to buy gold but to invest in financial assets that will encourage economic growth, arguing that surging imports of the yellow metal are unsustainable.

A day after the government made purchase of gold more expensive, Chidambaram on Thursday said while addressing the AGM of the Indian Banks' Association, "Banks have a role to play in dampening the enthusiasm for gold. I would urge all banks to please advise their branches that they should not encourage their customers to invest in or buy gold."

CNNMoney: Are gold and silver close to bottoming?

Precious metals have been in a tailspin for the past several months. Gold is down over 20% to around $1,400 an ounce from its September highs. Silver is down about 35% from highs in October to about $22.

But the floor may be in. New supply is low because extracting gold and silver isn't as profitable as it was just a few months ago. But demand in markets like India and China remains high. So that may indicate the worst is over for precious metals.

King World News:   Fund Managers Are Now Buying Gold With Their Own Money

With the dollar moving solidly lower and gold and silver rebounding, today acclaimed money manager Stephen Leeb told King World News that more and more fund managers are telling him they are buying physical gold with their own money, not GLD, and they are storing it themselves or in a vault outside of the banking system.  Below is what Leeb had to say in this powerful interview. 

Leeb:  “We have the US dollar down over 1% today and gold has reacted by moving firmly above the $1,400 level.  Silver is also moving higher.  I think the question now is how fast are the metals going to advance?  That will depend on a number of things, but one thing is certain and that is the selling is over.

ETF Daily News: The Forces That Will Drive The Next Bull Market In Gold and Silver

Larry Edelson: Almost no one thought gold and silver could ever get hit as hard as they’ve been hit. Not even the likes of big gold investors like George Soros … John Paulson … Rick Rule … Jimmy Rogers, and many others.

The thing is, they don’t really understand the gold market. They thought they did, but they failed miserably.

They failed to understand that the gold and silver markets are like any other market. What goes up for 11 years straight has a very high probability of pulling back for 1 to 2 years. That’s simple technical analysis, and those high-flying money managers didn’t even get that right.

King World News: Swiss Refiner Delays Hit 5 Weeks On Massive Gold Demand

Today Egon von Greyerz told King World News that delays from Swiss gold refiners have expanded to a stunning 5 weeks.  KWN readers need to remember that the Swiss refiners refine over 75% of the world’s gold supply.  Greyerz also discussed what is happening with gold demand in other key markets.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this remarkable interview.

Greyerz:  “Eric, the world has no idea what’s going to hit it.  The majority of people today in the West are living in debt and have no assets to protect, but for the people with savings and wealth and for the managers of funds, they don’t realize that they have lost 60% to 80% in real terms over the last 13 years.

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