Monthly Archives: July 2018

P&G raises prices on popular brands as costs rise/Financial Times/7-31-2018 –– “Procter & Gamble is pushing up prices for nappies, toilet paper and kitchen towels as the rising cost of commodities, exacerbated by trade tariffs, ripple through the supply chain to the supermarket aisle.

Why Americans are about to experience sharply higher prices/Zero Hedge/7-30-2018 –– “You’re going to see higher prices passed on to consumers…almost immediately” Matt Gold, a former deputy assistant U.S. Trade Representative for North America under former President Barack Obama, told CNBC. “A lot of goods are already warehoused that were imported months ago, so it takes a bit of time to catch up, but prices catch up pretty fast,” he added.

Inflation is coming thanks to Trump’s tariffs/Bloomberg/7-26-2018 –– “What led me to rethink my views? Steel prices are up more than 40 percent since Trump said on March 1 that he planned to impose a 25 percent tariff on steel imports and a 10 percent levy on aluminum. That is a significant increase that has yet to be passed through to consumers. But it will, and when that happens, potential risks to both the stock market and the economy increase dramatically.”

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World official gold reserves

World Gold Council/July, 2018

USAGOLD note:  China and Russia continue to add to their gold reserves.  Russia has gone from about 350 tonnes at the turn of the century to almost 1900 tonnes at present – quite a turnaround and commitment to the yellow metal.  We would not be surprised at an announcement from China at some point in the future of major additions to its gold reserves.  China tends to keep things quiet until a surprise announcement is made.

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Hedge funds’ big short could be fool’s gold

BloombergOpinion/David Fickling/7-30-2018

“It’s worth looking at the calendar, too. After January, August is arguably the most consistently bullish month for gold. Last year, spot metal rose 4.1 percent during the month. In both 2016 and 2017, ETFs added about 4 percent to their holdings over the three months leading up to the Hindu Diwali festival at the end of October, a traditional period of gold-giving.”

USAGOLD note:  As we have noted here in the recent past, short positions need to be bought in order for the speculator to realize a profit.

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Prepare for the biggest stock-market selloff in months, Morgan Stanley warns

MarketWatch/Ryan Vlastelica/7-3-2018

“The U.S. stock market has been partying all throughout July, and a hangover is coming. That’s according to analysts at Morgan Stanley, who said that Wall Street’s rally is showing signs of ‘exhaustion,’ and that with major positive catalysts for trading now in the rearview mirror, there’s little that could continue to propel equities higher.”

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Trump threatens government shutdown if Democrats don’t back immigration reform

CNBC/Javier E. David/7-29-2018

“President Donald Trump called on Congress to enact sweeping immigration reform, including a border wall, and threatened a federal government shutdown if Democrats refused to back his proposals.”

USAGOLD note:  I would remind that the last time the politicians closed down the government, rating services took the U.S. credit rating down a notch.  One wonders what another downgrade would do to the government’s ability to fund its deficit at a time when it is scheduled to reach record levels.

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Iran central bank sells 60 tonnes of gold coins to quell gold rush

“The rial has plummeted more than 50 per cent this year. A severe shortage of hard currencies has pushed up prices of goods, while panicked Iranians have rushed to buy gold coins, cars and small apartments to preserve their savings.  Mr Seif was criticised for poor management of the crisis. In recent months, the central bank has sold 60 tonnes of gold coins in local markets to stem the rise in the price of the precious metal, but the contentious decision has had little impact.”

USAGOLD note: As the saying goes, there’s no rush like a gold rush and once it begins prices and premiums can go through the roof overnight.  Historically, attempts by central banks to quell a rush by becoming the gold seller of last resort end in failure – and a greatly reduced gold reserve – at which time they must let the price find its own level, no matter what degree of financial chaos ensues.  People – no matter the country in which they gold citizenship – go to gold when they are concerned about their currency going to the nether depths.

Image by Pol70117 [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], from Wikimedia Commons [Edited]

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Powell to duck Trump jabs and let economy justify Fed rate pause

Bloomberg/Craig Torres/7-29-2018

“Recent pressure from the president is having no impact on” how they [the Fed] respond to data, said Priya Misra, head of global rates strategy at TD Securities USA in New York. “Ultimately, they will do what is right for the economy.”

USAGOLD note:  That, I imagine, is cipher for saying that the Fed will continue on the path of raising interest rates despite the European Union and the ECB acting in concert to keep the euro down, Japan and the BoJ acting in concert to keep the yen down and China and the PBoC acting in concert to keep the yuan down.  The Fed for its part continues on an interest rate path designed, it asserts, to provide space for lowering rates the next time a crisis occurs – a crisis, by the way, that could very well be instigated by the Fed raising rates.

 

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A spectacular set of old Mexican 50 pesos from the 1920s

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For the connoisseur, this 10-coin set of old Mexican 50 pesos in uncirculated condition is something to behold – a full date run from 1922-1930.  It can be had now at a very favorable price, but we only have two sets available and, as always, it’s first-come, first-served. These are large coins each weighing 1.2056 troy ounces that track the price of gold and offer, in addition, a chance of gain in collector’s premium as time goes by.

We also have several other sets on offer requiring much less of an outlay – British sovereigns, Dutch guilders and more historic Mexican coinage. We invite you to visit HERE to see what else is available.

You can order direct at our Online Order Desk or call 1-800-869-5115, X100.

___________________________________________________________________________

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Putting the cart before the horse: Gold Hype

CLIENT UPDATE

MishTalk/Mike Shedlock/7-21-2018

“It is important to put the horse in front of the cart. The commercial market makers (the cart) react to the horse (the specs). Speculative sentiment rests with the horse, not the cart.”

USAGOLD note: There is, and always has been, a lot of disinformation and off-the-wall interpretations with respect to the weekly COMEX Commitment of Traders reports. This article sorts out the confusion and puts things in their proper perspective, especially with respect to what these reports signal. The commercials – in the case of gold that amounts to the bullion banks – simply take the other side of the trade presented by the speculators.

As Shedlock explains, the bullion banks are the cart and speculators are the horse with the speculators driving the action. Speculators have increasingly gone short gold over the past several weeks pushing the market lower, but as we have said repeatedly here, those shorts at some point need to be filled in order to lock-in profits. At the moment, the COMEX gold short position is near record levels establishing the need for significant covering. “I like this set-up,” says Shedlock in a separate article.

 

 

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Putting the cart before the horse: Gold Hype

CLIENT UPDATE

MishTalk/Mike Shedlock/7-21-2018

“It is important to put the horse in front of the cart. The commercial market makers (the cart) react to the horse (the specs). Speculative sentiment rests with the horse, not the cart.”

USAGOLD note:  There is, and always has been, a lot of disinformation and off-the-wall interpretations with respect to the weekly COMEX Commitment of Traders reports.  This article sorts out the confusion and puts things in their proper perspective, especially with respect to what these reports signal. The commercials – in the case of gold that amounts to the bullion banks – simply take the other side of the trade presented by the speculators.

As Shedlock explains, the bullion banks are the cart and speculators are the horse with the speculators driving the action. Speculators have increasingly gone short gold over the past several weeks pushing the market lower, but as we have said repeatedly here, those shorts at some point need to be filled in order to lock-in profits.  At the moment, the COMEX gold short position is near record levels establishing the need for significant covering. “I like this set-up,” says Shedlock in a separate article.

 

 

 

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India gold demand likely to advance during second half of 2018

Scrap Register/7-26-2018

“Hike in minimum support (MSP) for kharif (summer) crops and good rains across the country have raised hopes for a better second half for the gold trade. Though demand in the first half of 2018 has been unenthusiastic, the trade is expecting a 25% growth in the second half compared to H2 of 2017.”

USAGOLD note:  China has already logged strong gold demand growth in the first half of the year.  India and China, as things look now, will account for nearly 100% of the year’s global mine production.

 

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Tariffs are about to hit consumers, and it won’t be pretty

CNBC/Jeff Cox/7-25-2018

“If the $200 billion of tariffs against China are implemented as planned, consumers could see price increases of 20 percent, according to an analysis by Societe Generale. The Trump administration’s latest plan targets a list heavily weighted toward consumer goods. The earlier tariffs targeted mostly industrial and intermediate goods.”

USAGOLD note:  Keep in mind too the inflationary impact of oil prices.  There is an oil price component to just about everything we consume.

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Gold catches Asia tailwind on yen, yuan factors

Gold caught something of a tailwind in Asia overnight that pushed it to the $1333.50 level, up $8 on the day. A stronger Japanese yen and Chinese yuan were major contributors to the upswing. The yen moved higher on internal polices aimed at stemming capital flows out of the country. China’s yuan surprisingly moved higher despite a recently unveiled government stimulus program and a weaker PBoC yuan fix – two factors that should have pushed the exchange rate lower. Silver is also higher at $15.63 (+14¢).

The president’s recent attack on the Fed’s rate-raising policies – what Axel Merck called the “Trump put” – will now become a major factor in any practical analysis of the forex and gold markets. Former Minnesota Fed president Narayana Kocherlakota offered an interesting insight in a recent Bloomberg opinion piece. “President Donald Trump,” he said, “has recently taken an aggressive stance toward the Federal Reserve, publicly criticizing it for choking off growth by setting interest rates too high. Together with remarks made by other administration officials, this raises a troubling possibility: that the White House could pressure the central bank into taking actions that would lead to unduly high inflation.” By the end of the piece, he warns of a return to the “Great Inflation” that ran from 1965 through 1982.

Quote of the Day
“I’m fond of saying how crazy things get near the end of Bubbles. Convinced this is History’s Greatest Bubble, I’ve been anticipating a pretty astonishing variety of ‘crazy.’ Watching this all unfold with increasing trepidation, I sense an important line has been crossed. It’s time to retire ‘crazy’ – find a replacement that conjures up something more foreboding – more disturbing. And markets, well, they’re seemingly fine with it all; at times almost giddy. And that’s the fundamental problem: Dysfunctional markets continue to promote incredibly risky policy behavior – the polar (bear) opposite of imposing discipline.” – Doug Noland, Credit Bubble Bulletin

Chart of the Day

Chart note: When the United States abandoned the gold standard in 1971 and freed currencies to float against one another, the fiat money era began. We are still in that era today. This chart shows the performance of gold from the early 1900s to 1971 when gold backed the dollar, and the era from 1971 to present when it did not. Gold has had its ups and down since 1971, but clearly, over the long run, in the absence of an official gold standard, individual investors have been well-served by putting themselves on a private gold standard.

 

 

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Gold catches Asia tailwind on yen, yuan factors

DAILY MARKET REPORT

Gold caught something of a tailwind in Asia overnight that pushed it to the $1333.50 level, up $8 on the day. A stronger Japanese yen and Chinese yuan were major contributors to the upswing.  The yen moved higher on internal polices aimed at stemming capital flows out of the country.  China’s yuan surprisingly moved higher despite a recently unveiled government stimulus program and a weaker PBoC yuan fix – two factors that should have pushed the exchange rate lower. Silver is also higher at $15.63 (+14¢).

The president’s recent attack on the Fed’s rate-raising policies – what Axel Merck called the “Trump put” – will now become a major factor in any practical analysis of the forex and gold markets. Former Minnesota Fed president Narayana Kocherlakota offered an interesting insight in a recent Bloomberg opinion piece. “President Donald Trump,” he said, “has recently taken an aggressive stance toward the Federal Reserve, publicly criticizing it for choking off growth by setting interest rates too high. Together with remarks made by other administration officials, this raises a troubling possibility: that the White House could pressure the central bank into taking actions that would lead to unduly high inflation.”  By the end of the piece, he warns of a return to the “Great Inflation” that ran from 1965 through 1982.

Quote of the Day
“I’m fond of saying how crazy things get near the end of Bubbles. Convinced this is History’s Greatest Bubble, I’ve been anticipating a pretty astonishing variety of ‘crazy.’ Watching this all unfold with increasing trepidation, I sense an important line has been crossed. It’s time to retire ‘crazy’ – find a replacement that conjures up something more foreboding – more disturbing. And markets, well, they’re seemingly fine with it all; at times almost giddy. And that’s the fundamental problem: Dysfunctional markets continue to promote incredibly risky policy behavior – the polar (bear) opposite of imposing discipline.” – Doug Noland, Credit Bubble Bulletin

Chart of the Day

Chart note: When the United States abandoned the gold standard in 1971 and freed currencies to float against one another, the fiat money era began. We are still in that era today. This chart shows the performance of gold from the early 1900s to 1971 when gold backed the dollar, and the era from 1971 to present when it did not. Gold has had its ups and down since 1971, but clearly, over the long run, in the absence of an official gold standard, individual investors have been well-served by putting themselves on a private gold standard.

 

 

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Wall Street’s derivatives nightmare: New York Times does a shallow dive

Wall Street on Parade/Pam Martens/7-24-2018

“The New York Times published a 1300-word shallow dive into the byzantine, globally-interconnected world of financial derivatives in its print edition yesterday. After years of ignoring this seismic problem since it last blew up the U.S. financial system in 2008, what accounts for the New York Times’ newfound interest? We can sum up its 1300 word article using only three letters – CYA.

What frightened the Times into this foray into the dark web of financial derivatives held by the biggest Wall Street banks was a frightening, 111-page deep dive into the subject by Michael Greenberger, a law professor at the University of Maryland’s Carey School of Law.  Greenberger knows a thing or two about derivatives, having previously served from 1997 to 1999 as the Director of the Division of Trading and Markets at the Commodity Futures Trading Commission (CFTC) under its head Brooksley Born.”

USAGOLD note:  Derivative risk was at the heart of the 2008 financial breakdown and, according to Greenberger’s study, it is back with a vengeance: “Thus, as the tenth anniversary of the Lehman failure approaches, there is an understanding among many market regulators and swaps trading experts that large portions of the swaps market have moved from U.S. bank holding company swaps dealers to their newly deguaranteed foreign affiliates. But, what has not moved abroad is the very real obligation of the lender of last resort to rescue these U.S. swaps dealer bank holding companies if they fail because of poorly regulated swaps in their deguaranteed foreign subsidiaries, i.e., the U.S. taxpayer.”  Greensberger’s full study is at the link posted above.

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GM cuts profit forecast after surging metals prices boost costs

Bloomberg/David Welch/7-25-2018

“General Motors Co. cut its forecast for profit this year as surging prices for steel and aluminum combine with swings in South American currencies to burden the largest U.S. automaker.”

USAGOLD note:  The first report we have seen linking tariffs to higher production costs – a whiff of inflation. The headline suggests that GM absorbed part, if not all, those cost increases by reducing its margin.  Ultimately, if the trend continues, manufacturers will be forced to pass along that cost in the form of higher prices on finished products.

 

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Why even a tweak from the BoJ can shake global markets

Financial Times/Leo Lewis, Kate Allen and Robin Wigglesworth/7-25-2018

“Last week, surveys showed that the majority of economists expected the central bank’s next move to be in the direction of a tapering of its quantitative easing policy, but fewer than a quarter reckoned anything was likely to happen this year, let alone this month. Some speculative investors, reflecting that mood, had been building long positions in JGB futures.”

USAGOLD note:  With all eyes on China, Japan’s central bank moves unexpectedly to rein-in its quantitative easing program, according to this FT report, and pushes the yen higher in overnight markets.  The move is an attempt to slow the flow of capital from Japan into U.S. sovereign debt.

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Gold goes sideways, silver finishes higher

AFTERNOON UPDATE

FOREX Closes: Gold $1224.50 (no change) / Silver $15.46 (+ 10¢)

Reuters/Eric Onstad/7-24-2018

“Gold ticked higher on Tuesday as the dollar slipped, but struggled to stabilise after weeks of losses. . . Gold has shed more than 10 percent since touching a peak of $1,365.23 in mid-April, largely hit by a stronger dollar amid U.S. interest rate hikes. Last week it hit a one-year low.”

USAGOLD note: Silver managed to eke out a gain of 10¢. Gold got as high as $1229 in the trading session but turned south as the dollar regained its footing. As we roll through the remaining weeks of the annual summer doldrums, some are beginning to talk about a bullish reversal in the works for gold. I found this analysis particularly interesting from a short-term point of view. (Offered with the usual caveats in place. . . .)

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Gold goes sideways today, but silver closes higher

AFTERNOON UPDATE

FOREX Closes: Gold $1224.50 (no change) / Silver $15.46 (+ 10¢)

Reuters/Eric Onstad/7-24-2018

“Gold ticked higher on Tuesday as the dollar slipped, but struggled to stabilise after weeks of losses. . . Gold has shed more than 10 percent since touching a peak of $1,365.23 in mid-April, largely hit by a stronger dollar amid U.S. interest rate hikes. Last week it hit a one-year low.”

USAGOLD note:  Silver managed to eke out a gain of 10¢.  Gold got as high as $1229 in the trading session but turned south as the dollar regained its footing. As we roll through the remaining weeks of the annual summer doldrums, some are beginning to talk about a bullish reversal in the works for gold.  I found this analysis particularly interesting from a short-term point of view. (Offered with the usual caveats in place. . . .)

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The Illustrated History of Money and Economics–3


Courtesy of: Visual Capitalist
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Why gold may be looking cheap

BlackRock Blog/Russ Koesternich/3-23-2018

“U.S. inflation is still low by historical levels, but at 2.9% U.S. headline inflation is at its highest level since 2012. This supports the notion that gold looks relatively cheap. Based on this relationship, gold is approximately 10% undervalued. Value, as I’ve said many times, is a poor short-time timing tool. To the extent the dollar continues to rise, gold is likely to struggle. That said, based on this metric gold is trading at the cheapest levels since the dollar last peaked in late 2016. To the extent it is even practical to discuss value and commodities in the same breath, gold prices are starting to look interesting.”

 

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Chinese gold market: Still in the driving seat

Bullion Star/Ronan Manly/7-19-2018

“This withdrawal total, 1038 tonnes, is the third highest SGE withdrawal total on record for the first six months of any year of the SGE’s existence, only lower than the 1098 tonnes and 1178 tonnes recorded at the end of June 2013 and June 2015, respectively. The following chart highlights the cumulative Month 6 gold withdrawals from the SGE vaults, comparing all years from 2008 to 2018.”

Chart courtesy of GoldChartsRUs/Nick Laird

USAGOLD note:  The barbarous relic remains under strong accumulation in China – and at favorable prices.

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Venezuela inflation will hit one million per cent this year: IMF

Financial Times/Gideon Long/3-24-2018

“Inflation in Venezuela will hit one million per cent this year and the country’s deep economic and social crisis ‘will lead to intensifying spillover effects on neighboring countries,’ the International Monetary Fund has predicted.”

USAGOLD note:  It is difficult to fathom what Venezuelans are experiencing in their daily lives with an inflation rate running at this level.  One thing we do know is that one ounce of gold in Venezuela today will buy what it did six months ago in terms of goods and services, same as it did one year ago, ten years ago, one hundred years ago.

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Gold ends with loss as dollar climbs to start week

AFTERNOON UPDATE

FOREX Closes: Gold $1224.30 (– $7.50) / Silver $15.36 (– 11¢)

MarketWatch/William Watts and Myra Saefong/7-23-2018

“Meanwhile, analysts at Commerzbank noted that data from the Commodity Futures Trading Commission showed speculators significantly expanded net short positions — bets the price will fall — to 26,400 contracts in the week to July 17, not far off the late 2015 record high. Extreme positioning is often seen as a contrarian indicator. ‘Speculative market participants often behave in a very cyclical fashion, and in the past such extreme positioning has frequently been an indicator of a pronounced countermovement in the near future,’ they wrote. [‘Very negative market positioning at the end of 2015 was followed by a surge in the gold price of roughly $300 in the first half of 2016.’”

[Emphasis added]

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Gold price forecast: Multiple factors support a bottom

Gold Eagle/AG Thorson/7-23-2018

“Friday’s COT report for gold displayed refreshing improvement. Commercial traders reduced their net short positions by roughly 27%. It now stands at -73,635 contracts, which is the precise level that accompanied the July 2017 low. As a reminder, after bottoming last July gold rallied from $1204 – $1362 in just 8-weeks.”

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Gold drops again on stand aside PBoC yuan devaluation stance

Gold took a southerly turn in today’s early trading in response to sharp drop in the Chinese yuan. It is down $6.50 at $1225 following a surge late last week that took it back over the $1230 mark. Silver is down 9¢ at $15.43.

The president’s rhetoric late last week attempting to counter devaluation of the yuan, it would seem, has fallen on deaf ears. The precipitous drop in the yuan continues unabated (see today’s Chart of the Day) with the Peoples Bank of China sending a message of its own: It will stand aside and let the yuan drop on international currency markets.

As reported here last week, China is stepped up a dovish monetary policy, including a stronger dose of quantitative easing, while the Fed chairman over the weekend pledged to stay the course on raising in interest – all to the chagrin of the sitting president of the United States, who appears powerless in the face of it all. None of this has escaped the notice of international currency traders.

Meanwhile, through it all, China continues to import massive amounts of the “barbarous relic” to balance its huge dollar-based reserves. It imported 400 tonnes in the second quarter – about two-thirds of the global mine production. We would add that those imports crossed China’s border at very favorable prices.

Quote of the Day
“The currency should be depreciating from a broad macro perspective – you have the Fed hiking and PBOC easing, so at some point it will be reflected in the FX market. This is still in line with the broader PBOC policy of introducing more volatility and letting the market play itself out.” – Frederic Neumann, co-head of Asian economics research at HSBC Holdings Plc in Hong Kong (Bloomberg interview)

Chart of the Day

Carryover Update

Last week in Myra Saefong’s MarketWatch afternoon gold market update:

“I do not believe that the trade wars at present are the dominant issue for gold and the dollar,” Michael Kosares, founder of gold broker USAGOLD, told MarketWatch. “Both, I believe, are still caught up in a syndrome dictated by dovish interest-rate policy across both oceans, while the U.S. continues to raise rates. That could all change in a heartbeat, though, if the inflation rate begins to run consistently higher than interest rates.”

Reports have surfaced that China’s central bank is aggressively pursuing its own version of a quantitative easing program. (Read here) Simultaneously it fixed the yuan top-shelf exchange rate lower signalling it was interested in a weaker yuan against the dollar and other currencies. The combination sent gold reeling overnight in Asian markets – down $14 at one point. Gold has staged a minor recovery in early U.S. trading and is now down $10 at $1217. Increasingly, currency traders are suggesting that the Fed may be forced to act. In an editorial this morning, the Financial Times warns “The U.S. central bank must be prepared to halt or reverse rates. . . if financial stability is threatened.”

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Gold drops again on stand aside PBoC yuan devaluation stance

DAILY MARKET REPORT

Gold took a southerly turn in today’s early trading in response to sharp drop in the Chinese yuan. It is down $6.50 at $1225 following a surge late last week that took it back over the $1230 mark. Silver is down 9¢ at $15.43.

The president’s rhetoric late last week attempting to counter devaluation of the yuan, it would seem, has fallen on deaf ears.  The precipitous drop in the yuan continues unabated (see today’s Chart of the Day) with the Peoples Bank of China sending a message of its own:  It will stand aside and let the yuan drop on international currency markets.

As reported here last week, China is stepped up a dovish monetary policy, including a stronger dose of quantitative easing, while the Fed chairman over the weekend pledged to stay the course on raising in interest – all to the chagrin of the sitting president of the United States, who appears powerless in the face of it all.  None of this has escaped the notice of international currency traders.

Meanwhile, through it all, China continues to import massive amounts of the “barbarous relic” to balance its huge dollar-based reserves.  It imported 400 tonnes in the second quarter – about two-thirds of the global mine production.  We would add that those imports crossed China’s border at very favorable prices.

Quote of the Day
“The currency should be depreciating from a broad macro perspective – you have the Fed hiking and PBOC easing, so at some point it will be reflected in the FX market. This is still in line with the broader PBOC policy of introducing more volatility and letting the market play itself out.” – Frederic Neumann, co-head of Asian economics research at HSBC Holdings Plc in Hong Kong (Bloomberg interview)

Chart of the Day

Carryover Update

Last week in Myra Saefong’s MarketWatch afternoon gold market update:

“I do not believe that the trade wars at present are the dominant issue for gold and the dollar,” Michael Kosares, founder of gold broker USAGOLD, told MarketWatch. “Both, I believe, are still caught up in a syndrome dictated by dovish interest-rate policy across both oceans, while the U.S. continues to raise rates. That could all change in a heartbeat, though, if the inflation rate begins to run consistently higher than interest rates.”

Reports have surfaced that China’s central bank is aggressively pursuing its own version of a quantitative easing program. (Read here) Simultaneously it fixed the yuan top-shelf exchange rate lower signalling it was interested in a weaker yuan against the dollar and other currencies. The combination sent gold reeling overnight in Asian markets – down $14 at one point. Gold has staged a minor recovery in early U.S. trading and is now down $10 at $1217. Increasingly, currency traders are suggesting that the Fed may be forced to act. In an editorial this morning, the Financial Times warns “The U.S. central bank must be prepared to halt or reverse rates. . . if financial stability is threatened.”

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China imports 400 tonnes of Swiss gold in H1

Sharps Pixley/Lawrie Williams/7-23-2018

“Gold flows from West to East seem to be holding up well, at least as far as imports into Greater China from Switzerland are concerned. The small European nation, which has a number of specialist gold refineries, has exported so far this year some 400 tonnes of gold to China and to its special administrative region of Hong Kong in the ratio of around 69% direct to the Chinese mainland and 31% to Hong Kong – with most of the latter ultimately destined for mainland China too.”

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Six months later, stock market struggles to return to record high

“Thursday marks half a year since the stock market made its last all-time high, when the S&P 500 registered 2,872 after surging more than 7 percent in less than four weeks. How to read market’s message since then? From one angle, it looks like six months of subsidence and struggle. After a 12 percent plunge from that heady high on Jan. 26, the market remains in an unusually protracted consolidation, holding above the February lows but with several rally attempts so far falling well short of the old peak.”

USAGOLD note: It’s not just gold that is having difficulty gaining and keeping momentum. . . .

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Analysts slash gold price forecasts after second quarter plunge – Reuters poll

Reuters/Peter Hobson and Sumita Layek/3-23-2108

“Banks and brokerages have cut their average gold price forecasts for this year and next after heavy losses in the second quarter, but expect the metal to bounce back towards $1,300 an ounce, a Reuters poll showed on Monday.”

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