Today’s AM fix was USD 1,312.00, EUR 965.20 and GBP 765.51 per ounce.
Yesterday’s AM fix was USD 1,321.25, EUR 969.87 and GBP 771.53 per ounce.
Gold dropped $31.00 or 2.32% yesterday to $1,306.70/oz and silver slid $0.50 or 2.38% to $20.92/oz.
Gold In U.S. Dollars - 2 Days (Thomson Reuters)
Gold rebounded 0.4% in Asian and European trading from a one month low on speculation yesterdays sharp sell off in the paper market, the biggest price fall this year, may lead to increased ETF and physical demand for gold bullion.
Massive concentrated selling on the futures market at times when there was no breaking news or market moving developments led to sharp price falls yesterday. Nearly $1.5 billion of gold futures contracts was dumped on the market in minutes at the open on the COMEX.
The selling was confined to the paper market as mints, refineries and dealers did not report any sudden bout of selling. Indeed, holdings in the largest gold exchange-traded product expanded to the highest level since April yesterday.
The assets rose 8.68 metric tons to 808.73 tons yesterday, the biggest tonnage gain since October 2012, data from the company’s website showed. Holdings in the SPDR Gold Trust have climbed this year.
Asian equities eked out slight gains but European equities have fallen today as concerns about the European banking system and sovereign debt issues fester.
The sell off yesterday led to renewed concerns about market manipulation. It creates another opportunity to acquire physical gold at discounted prices.
We Are Now Offering A Price Match Guarantee And Will Match Prices Offered By Bullion Dealers Internationally >> Bullion Coin And Bar Price Match Guarantee
IMPORTANT NEWS
Gold Holds Above One-Month Low as Investors Add SPDR Holdings
(Bloomberg) Gold traded above a three-week low in London on speculation the biggest decline this year may attract buying and before Federal Reserve Chair Janet Yellen speaks today and tomorrow.
Bullion slid 2.4 percent yesterday, the most since Dec. 19, as European and U.S. equities climbed and concern about financial stress at a Portuguese bank eased. As gold prices retreated from an almost four-month high set last week, holdings in gold-backed funds gained the most since 2012 yesterday.
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Gold Tumbles Most in 2014, US Mint Bullion Coin Sales Jump
(Coin News) Gold tumbled out of gate to start the new trading week Monday with investors booking profits on recent gains and demand for safe-havens fell as equities soared.
Gold for August delivery dropped $30.70, or 2.3%, to end at $1,306.70 an ounce on the Comex division of the New York Mercantile Exchange.
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BIS Chief Fears Fresh Lehman From Worldwide Debt Surge
(The Telegraph) The world economy is just as vulnerable to a financial crisis as it was in 2007, with the added danger that debt ratios are now far higher and emerging markets have been drawn into the fire as well, the Bank for International Settlements has warned.
Jaime Caruana, head of the Swiss-based financial watchdog, said investors were ignoring the risk of monetary tightening in their voracious hunt for yield.
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BRICs Launch Global Development Bank
(The Guardian) Shanghai looks set to become the headquarters of a development bank being launched by the Brics – Brazil, Russia, India, China and South Africa – despite fears by some members of the group that China could hijack the bank to serve its interests.
The five emerging-market nations are due to sign off on the new institution on Tuesday, along with an emergency reserves fund, after two years of negotiations – a major step for the diverse group known more for its anti-western rhetoric than coordinated action.
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Bulgaria To Allow Its Fourth-Biggest Bank To Collapse
(Reuters) - Bulgaria is to allow its fourth-biggest lender to collapse but could spend up to 2 billion levs ($1.39 billion) making sure customers do not lose out, as the Balkan country battles to clean up its worst financial scandal since the 1990s.
* Plan aims to stop fallout from bank run last month
* Audit indicates "serious felony": interior ministry
* Substantial parts of loan dossier missing: cenbank
* Bulgaria's credit default swaps at one-week high
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IMPORTANT ANALYSIS
Gold Manipulation? - $1.3 Billion Paper Gold Sale At An Illiquid Time
(JS Mineset) - Manipulation such as the sale of $1.3 billion dollars worth of paper gold at an illiquid time period today is not to protect the dollar or bull the general equity market. It is to make money for the manipulators that want here to cover their shorts and initiate to expand their long positions. That sale was a pure construct as there was no news to sustain the sell or to initiate it in the time span of its occurrence. Long term cycles in gold are in the process of turning long term positive. That is fact. There is a strong possibility that this is the last take down before gold trades at a new highs. I feel this is the situation.
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Silver Manipulated By Excessive And Concentrated Short Selling On The COMEX
(SilverSeek) - It’s now going on close to 30 years since I first discovered that silver was manipulated by excessive and concentrated short selling on the COMEX. I remember the exact moment like it occurred yesterday. It’s hard to believe I was in my 30’s when this started. As I’ve explained previously, I was looking for an answer to Izzy Friedman’s question as to how and why silver prices remained so low when the market was in a supply/demand deficit.
Through no great accomplishment on my part, aside from having a futures market background of almost 15 years at the time, it suddenly dawned on me that silver prices were dictated on the COMEX, to the point of price manipulation. Everything that has transpired since has only confirmed to me that silver prices are still manipulated on the COMEX.
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Gold Slumps Most In 2014 As "Someone" Dumps $1.37 Billion In Futures At US Open
(ZeroHedge) - That US open print was a $1.37 billion notional flush...
In a status-quo reinforcing smackdown, gold and silver prices have been clubbed lower this morning to one-month lows with the biggest drop in almost 2 months. The customary USDJPY surge (and risk asset spike) has accompanied this high volume dump just to make sure everyone believes that BES is fixed, Ukraine is fixed, Iraq is fixed, earnings are great, and the water is warm....
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GLD ETF Holdings Surge Most In Three Years As Gold Has Biggest Daily Drop In 2014
(ZeroHedge) - Today saw the media congratulate themselves over the demise of the anti-status-quo indicator - gold. The precious metal dropped over 2% on the day amid major volumes in futures - its biggest drop in 2014. However, it seems the GLD ETF decided today's dump was the right opportunity to load up on the "put against the idiocy of the political cycle," which saw its largest inflow since August 2011. The ongoing oscillation between the paper and physical markets (amid the chaos that China's Qingdao ponzi has created) appears to have shifted trend as the last 2 months has seen the biggest net inflows in 2 years (since pre-German gold repatriation).
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US Offers Immunity To Forex Manipulation Traders
(CityWire) - Financial Times: US prosecutors are offering immunity deals to junior traders in London as they try to gather evidence against banks and more senior staff in the investigation into alleged currency market manipulation.
Financial Times: Portugal’s central bank has ordered the immediate appointment of a new chief executive and other board members at Banco Espírito Santo, the Portuguese lender that last week sparked a sell-off across European stock markets.
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