Gold & Silver Digest: 1/27/14

Adam Taggart
By Adam Taggart on Mon, Jan 27, 2014 - 9:28pm

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.

1/27/14 7:15 PM EST US close metals price quotes from Finviz

Reuters: Gold falls 1 pct on Fed worries; equities steady

Gold fell around 1 percent on Monday, retreating from a two-month high earlier in the session, as a steadier U.S. equities market and jitters ahead of a key Federal Reserve meeting this week triggered profit taking.

The metal was weighed down by expectations that the Fed could trim monetary stimulus further from the $10 billion-a-month reduction to its bond purchases decided in December. The Federal Open Market Committee is scheduled to begin its two-day policy meeting on Tuesday.

Bloomberg: Gold Flows East as Bars Recast for Chinese Defying Slump

Gold’s biggest slump in three decades has been a boon for MKS (Switzerland) SA’s PAMP refinery near the Italian border in Castel San Pietro, whose bullion sales to China surged to a record as demand rose for coins, bars and jewelry.

As prices plunged 28 percent in 2013, investors dumped a record 869.1 metric tons from gold-backed funds traded mostly in the U.S. and Europe. Much of that metal is ending up in Asia, where companies such as The Brink’s (BCO) Co., UBS AG and Deutsche Bank AG are opening new vaults. China’s expanding wealth has made the country the world’s largest buyer, surpassing India, as imports reached an all-time high.

Market Watch: Gold futures log first fall in three sessions

Gold futures on Monday logged their first loss in three sessions, but finished above the day’s lows as a generally weaker U.S. stock market helped support demand for the precious metal.

Traders awaited an upcoming two-day meeting of the Federal Open Market Committee that begins on Tuesday and are looking ahead to the week’s U.S. economic data calendar, which includes reports on durable-goods orders and consumer confidence on Tuesday and manufacturing and consumer-sentiment figures on Friday.

Bullion Vault: Gold Mining Stocks Now Leading the Metal

AT THE START of the year we asserted that gold mining equities could lead the price of bullion higher, writes Jordan Roy-Byrne at TheDailyGold.com

Since then, the shares have roared higher while the metals have remained subdued. Gold has gained a bit but silver has really struggled. Why are the stocks performing so well if the metals are not confirming?

Jesse's Cafe Americain: Gold Daily and Silver Weekly Charts - FOMC Week Shenanigans

Gold spiked higher in the morning on a pure flight to safety, but was pushed lower as stocks attempted to rally. Reality versus liquidity?

The FOMC will meet this week, so we might expect the usual FOMC shenanigans, but bear in mind that the big traders are squaring off against the upcoming February delivery.

SilverBear Cafe: How Long Can Gold Prices Be Held Down – Supply Factors

On the supply side, we note that newly mined gold supply in 2013 was around 2,800 tonnes [final figures yet to be published] and scrap gold was around 1,400 tonnes, before U.S. sales [which were around 1,200 tonnes in 2013]. That totaled 5,400 tonnes.

Scrap Sales

With prices at $1,200 there is little incentive for scrap sellers to sell for profit. So these supplies in 2014 are expected to drop substantially, until prices rise back to much higher levels.

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