{"id":4688,"date":"2010-12-15T09:00:50","date_gmt":"2010-12-15T08:00:50","guid":{"rendered":"http:\/\/midastouch.goldgenie.com\/?p=4688"},"modified":"2010-12-15T09:00:50","modified_gmt":"2010-12-15T08:00:50","slug":"gold-silver-not-crowded-trades","status":"publish","type":"post","link":"https:\/\/www.goldgenie.com\/blog\/gold-silver-not-crowded-trades\/","title":{"rendered":"Gold & Silver \u201cNot Crowded Trades\u201d"},"content":{"rendered":"

London Gold Market Report<\/strong><\/p>\n

\nF<\/strong>rom Adrian Ash<\/p>\n

\nBullionVault<\/a><\/p>\n

\nAs J.P.Morgan \u201cMaterially Cuts\u201d Short Silver Position, Says Source<\/strong><\/p>\n

<\/strong><\/p>\n

\nTHE PRICE OF GOLD<\/strong> rose to 1-week highs above $1400 per ounce overnight in Asia on Tuesday, rising as the Dollar fell on the forex market, before slipping back after new data showed much stronger-than-expected US retail sales and factory-gate inflation for November.
\nCrude oil slipped from $88.70 per barrel, and base metals also dipped.<\/p>\n

\nWholesale silver investment<\/a> bars dropped 50 cents from $30 per ounce after extending Monday’s rally \u2013 and gaining 4.3% from last week’s finish \u2013 as the Financial Times reported that market-making brokerage and bank J.P.Morgan has \u201cmaterially\u201d reduced its bets on lower prices, citing \u201ca person familiar with the matter.\u201d
\n\u201cIt is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position,\u201d the FT quotes a spokesman for J.P.Morgan, which acquired Bear Stearns’ large precious metals dealing-book when it bought the failed investment bank in March 2008.<\/p>\n

\nJ.P.Morgan has been linked by internet authors with the unspecified \u201cfraudulent efforts\u201d to control silver prices<\/a> alleged in Oct. by Commodity Futures Trading Commission commissioner Bart Chilton.<\/p>\n

\nOn the other side of the trade, the US gold futures<\/a> market \u201chas seen its net speculative position as a percent of [all contracts open] remain largely flat at 30.32%,\u201d notes Standard Bank’s Walter de Wet of the latest CFTC data.
\nIn contrast with crude oil and copper markets, \u201cThis level is below the average level seen over the past year and points to a market that is not crowded yet. The same goes for Comex silver, where the net spec positions [bullish minus bearish bets held by non-industry players] have actually declined as a percent of OI to 18.35%, down from 20% [the previous] week.\u201d<\/p>\n

\n“Gold is following up momentum with the selling of Dollars towards the year end,” said a Singapore bullion trader to Reuters earlier.<\/p>\n

\n“[Gold prices<\/a>] are resuming the uptrend, and there are not many down days to be expected.”
\nRecording its 10th ever London Gold Fix<\/a> above $1400 an ounce this morning, the gold price<\/a> fell vs. the Euro as the single currency jumped 1.8% against the greenback on the forex market.<\/p>\n

\nThe gold price in British Pounds<\/a> rose 0.8% after new data showed UK consumer price inflation rising to 3.3% annually last month, led by a record Oct-to-Nov. jump in each of food, clothing and furniture prices.
\nNov. marked the 11th month running that inflation has stood 1% or more above the Bank of England’s official 2.0% target. Charged only with defending consumer-price stability, the UK central bank has now kept its key interest rate at a record low of 0.5% for 20 months running.<\/p>\n

\nLatest UK house-price data from the Royal Institute of Chartered Surveyors meantime says that \u201clack of demand from buyers continues to stifle the market, and new buyer enquiries fell for the sixth consecutive month\u201d in Nov.<\/p>\n

\n\u201cOnly if [Beijing] really raised interest rates would it put real pressure on the gold market,” said Ronald Leung of Lee Cheong Gold Dealers in Hong Kong to Reuters this morning, after a report in the China Securities Journal said the central bank will again apply this year’s ceiling of 7.5 trillion Yuan (US$1.12trn) to new bank lending in 2011.<\/p>\n

\nActual bank lending is likely to hit CNY7.8trn in 2010, the Economic Observer quotes a senior source today. The People’s Bank has raised interest rates only once this year, but hiked bank-deposit reserve requirements six times \u2013 and applied price caps on a range of items \u2013 as consumer-price inflation has risen to 28-month highs above 5% per year.<\/p>\n

\n\u201cToday it was gold\u2019s turn to shine,\u201d says a Hong Kong dealer after \u201cbase metals rallied strongly in Asia\u201d on Monday.<\/p>\n

\nGold dealing<\/a> was \u201cone-way traffic\u201d this morning, he says.<\/p>\n

\nAsian stock markets were muted, meantime, and European equities held flat on Tuesday morning,
\nUS and UK government bonds continued to tick lower in price, but German Bunds rose after an auction of new Spanish debt met with good demand, but only at sharply higher interest rates for the investors.<\/p>\n

\nSpanish bonds fell hard in the open-market, driving 10-year yields to near-2010 records above 5.6%.<\/p>\n

\nBuying some \u20ac2.7bn of Eurozone government debt in Nov., the European Central Bank now needs extra capital \u2013 perhaps twice its current \u20ac5.8bn, according to press reports \u2013 to cover possible losses on the \u20ac130bn of higher-risk assets it now holds.<\/p>\n

\nAlso today, the ECB published legal advice it’s taken regarding political moves in European Union-member Hungary which \u201ccould be seen as the Government trying to influence\u201d Budapest’s central-bank governor \u201cin the performance of his tasks.<\/p>\n

\n\u201cAny such influence would be contrary\u201d to EU treaties, says the advice.<\/p>\n

\nIn Budapest yesterday, the Parliament approved state confiscation of privately-held mandatory pension funds by a majority of 250 to 58.<\/p>\n

\n\u201cThe legislation is a de factor rollback of pension reforms in the late 90s that established a funded pension pillar alongside the state’s pay-as-you-go system,\u201d says Hungary’s RealDeal finance site.<\/p>\n

\nAdrian Ash<\/p>\n

\nBullionVault<\/a><\/p>\n

\nGold price chart, no delay<\/a> |\u00a0\u00a0 Buy gold online at live prices<\/a><\/p>\n

\nFormerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash<\/strong> is the editor of Gold News<\/a> and head of research at BullionVault<\/a> \u2013 winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council<\/a> research body \u2013 where you can buy gold today<\/a> vaulted in Zurich on $3 spreads and 0.8% dealing fees.<\/p>\n

\n(c) BullionVault<\/a> 2010<\/p>\n

\nPlease Note:<\/strong> This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events \u2013 and must be verified elsewhere \u2013 should you choose to act on it.<\/p>\n","protected":false},"excerpt":{"rendered":"

London Gold Market Report From Adrian Ash BullionVault As J.P.Morgan \u201cMaterially Cuts\u201d Short Silver Position, Says Source THE PRICE OF<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[123,258,702,1033],"class_list":["post-4688","post","type-post","status-publish","format-standard","hentry","category-gold-news","tag-adrian-ash","tag-bullionvault","tag-gold-news","tag-london-gold-market-report"],"_links":{"self":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/posts\/4688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/comments?post=4688"}],"version-history":[{"count":0,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/posts\/4688\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/media?parent=4688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/categories?post=4688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/tags?post=4688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}