Gold took a tumble for the first time in 7 sessions in Asia as Antonis Samaras, leader of the Greece’s New Democracy Party (pro-bailout) was victorious. Today, Samaras plans to form a coalition with other parties backing the bailout – meaning that Greece’s future in the euro is secure – for now. Gold’s dip in Asia was thought to be due to profit taking and increased risk appetite after the Greek election. However, this increase in risk appetite has been quite short lived with Spanish and Italian 10 year bonds again coming under pressure resulting in record Spanish yields over 7.13% and Italian 10 year over 6% again. Initial gains in equity markets have subsided and the lessening of risk appetite is seeing gold supported. Greece’s exit from the Eurozone is no longer a short term risk however it remains a real risk as does the risk of financial contagion in the Eurozone due to insolvent banks in Spain, Italy and France.
From Goldcore:
Today’s AM fix was USD 1,623.50, EUR 1,284.52, and GBP 1,035.20 per ounce.
Friday’s AM fix was USD 1,619.00, EUR 1,289.83, and GBP 1,044.65 per ounce.
Silver is trading at $28.50/oz, €22.64/oz and £18.25/oz. Platinum is trading at $1,492.50/oz, palladium at $626.75/oz and rhodium at $1,215/oz.
Gold rose $1.90 or 0.12% on Friday in New York and closed at $1,626.20/oz resulting in a 2% gain for the week. Gold initially rose and then fell in Asia. However, gold has made a quick recovery (low $1,616/oz) and is holding its ground above $1,620/oz.
Cross Currency Table – (Bloomberg)
Gold took a tumble for the first time in 7 sessions in Asia as Antonis Samaras, leader of the Greece’s New Democracy Party (pro-bailout) was victorious. Today, Samaras plans to form a coalition with other parties backing the bailout – meaning that Greece’s future in the euro is secure – for now.
Gold’s dip in Asia was thought to be due to profit taking and increased risk appetite after the Greek election. However, this increase in risk appetite has been quite short lived with Spanish and Italian 10 year bonds again coming under pressure resulting in record Spanish yields over 7.13% and Italian 10 year over 6% again.
Initial gains in equity markets have subsided and the lessening of risk appetite is seeing gold supported.
Greece’s exit from the Eurozone is no longer a short term risk however it remains a real risk as does the risk of financial contagion in the Eurozone due to insolvent banks in Spain, Italy and France.
Some investors are waiting for a policy statement release from the US Fed after their 2 days of meeting concludes on Wednesday. Further QE is inevitable and if this is signalled gold should react very positively and we could see a sharp move up as was seen last July and August (see chart).
When an earlier round of quantitative easing was announced in November 2010, it pushed gold to a record high as more money was pumped into the financial system.
Gold is expected to benefit from strong support at $1,610 and especially $1,604, Societe Generale said in a note today as reported in the Reuters Global Gold Forum. Resistance is set to kick in around $1,632 then at $1,637/oz.
OTHER NEWS
(Bloomberg) — Gold Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended June 12, according to U.S. Commodity Futures Trading Commission data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 132,315 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 3,451 contracts, or 3 percent, from a week earlier.
Gold futures rose this week, gaining 2.3 percent to $1,628.10 a troy ounce at today’s close.
Miners, producers, jewelers and other commercial users were net-short 158,790 contracts, an increase of 2,668 contracts, or 2 percent, from the previous week.
Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators’ positions because such transactions can reflect an expectation of a change in prices.
Currency Ranked Returns – (Bloomberg)
(Bloomberg) — Silver Traders Trim Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators decreased their net-long position in New York silver futures in the week ended June 12, according to U.S. Commodity Futures Trading Commission data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 9,609 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 185 contracts, or 2 percent, from a week earlier.
Silver futures rose this week, gaining 0.9 percent to $28.74 a troy ounce at today’s close.
Miners, producers, jewelers and other commercial users were net-short 17,919 contracts, an increase of 1,394 contracts, or 8 percent, from the previous week.
Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators’ positions because such transactions can reflect an expectation of a change in prices.
(Bloomberg) — Mexico $121 Billion Pension Funds Can Invest in Commodities
Mexico’s pension funds, the nation’s largest institutional investors, will be allowed to invest in most commodity-linked securities starting June 20 as regulators seek to allow them to diversify investments.
The pension funds, known as Afores, will be able to invest in commodity futures, options and swaps contracts, Mexico’s central bank said in guidelines published in today’s official gazette. About $9 billion in pension assets will be eligible to invest in commodities, according to Bloomberg calculations.
Mexican pension funds, with 1.68 trillion pesos ($121 billion) under management, have been able since December to invest from 5 to 10 percent of some portfolios for younger workers in commodity-linked securities. The Afores had mostly allocated their holdings to the country’s debt markets.
Afore Banamex, Mexico’s largest pension fund, plans to “gradually” invest as much as 2 percent of total assets in commodities, said Luis Sayeg, the chief executive officer of the bank’s pension unit. The fund will hire a third-party asset manager for such investments, he said in a June 11 interview.
Mexico’s central bank authorized investments for commodities from milk to oil. The Afores will also be able to invest in indexes linked to such securities, the gazette said.
Afore Banamex manages 289 billion pesos ($22.5 billion), according to data from the country’s pension regulator.
Barclays Plc, BlackRock Inc., Schroders Plc and Deutsche Bank AG are among asset managers that were waiting for the final guidelines to enter formal talks with different Afores.
(Bloomberg) — India Cuts Benchmark Import Price for Gold to $524 Per 10 Grams
India cut the benchmark price for gold imports to $524 per 10 grams from $531 set on June 7, according to a statement from the finance ministry.
The benchmark price for imports of silver was raised to $938 per kilogram, the ministry said. The benchmark prices are used to set the tax in precious metal imports.
For breaking news and commentary on financial markets and gold, follow us on Twitter.
NEWS
Gold Under Pressure in Asia; Fed Meeting in Focus – Wall Street Journal
Gold snaps 6-day winning streak after Greek vote – Reuters
Gold slips following Greek election – MarketWatch
Short-Term Gold Options Get Physical – CNBC
Large Jeweller In Turkey to Collect Gold With Banks – Business Week
COMMENTARY
SocGen’s Take On The Greek Elections And What Happens Next – Zero Hedge
Gold Wars: Military Conflicts, Gold and Currency – LIPS Institute
Paul Craig Roberts (Former Assistant Treasury Secretary) On Gold Price Suppression – USA Watchdog
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what’s the name of the software to get all these tables and charts? and is it free?
durentu;
Hi all SD readers;
427 I share your opinion. Screw KWN. All we’ve been doing is giving them free exposure.
The above post I made is a repost from saturday and hear are some opinons of other reader who viewed it.
I used to read KWN daily, but no longer ever even visit the site due to their hostility and aggression.
-Doc
Bill Haines says the same things every week. It’s become a big bore. I don’t find it to be worth anything anymore. Dan is a trader– so I don’t find it to be interesting, especially relating to mining shares—but that’s just me.
Basically I can sum up what Dan says every week too—If gold is trading at say $1620—he says resistance is $1640-1650—then $1680—support is $1600 and $1580—-EVERY WEEK!—I can say stuff like that without looking at any charts. In silver, he says—”if it goes to 30, it’ll go to 31. Then he says “if it goes to $28, it’ll go to $27 or $26 every week.
And this does not matter what the prices are. If gold is trading at $1740—he says $1750, $1780 resistance and $1720 and $1700 support. Silver–at $35.30 or whatever, $35.40, $35.50 resistance, then $35.80 and support at $35.20 then $35! This is worthless info IMO.
The interviews have become hype and advertisement for other interviews—the same stuff is said every day.
I’ve seen comments such as this from others increasingly about KWN—Maybe they want to collect on law suit settlements because they are collecting less on the website, who knows.
There does seem to be something odd about KWN. Virtually everything published on that site has the same tenor of hysterical urgency that Steve Quayle had with his Red Alert Euro Is Collapsing report last week. It also seems to be populated with a substantial number of billionaires and fund managers. Given their animosity to Silver Doctors, a site with real and substantive information, the shrill shilling of their newsletters and mining stocks does seem to relegate them to the billionaires baby wading pool. IMO
I hope this doesn’t get us in trouble with KWN. Having them get their dander up when someone posts their opinion on a free web site like SD seems pretty petty and meanspirited. I wonder what they are afraid of?
427 June 16, 2012 at 5:03 PMAG; Who knows what there afraid of ? I thought maybe the stuffed shirt crowed. ”does seem to relegate them to the billionaires baby wading pool. IMO” However why then SGT & FSN ? We are all about the same on the doom & gloom, Politics and opinion of government. SGT has an open tread but I have never participated there. I do know they do not have anything on You Tube ether. I da no!
The above post I made is a repost from saturday and hear are some opinons of other reader who viewed it.
I used to read KWN daily, but no longer ever even visit the site due to their hostility and aggression.
-Doc
Bill Haines says the same things every week. It’s become a big bore. I don’t find it to be worth anything anymore. Dan is a trader– so I don’t find it to be interesting, especially relating to mining shares—but that’s just me.
Basically I can sum up what Dan says every week too—If gold is trading at say $1620—he says resistance is $1640-1650—then $1680—support is $1600 and $1580—-EVERY WEEK!—I can say stuff like that without looking at any charts. In silver, he says—”if it goes to 30, it’ll go to 31. Then he says “if it goes to $28, it’ll go to $27 or $26 every week.
And this does not matter what the prices are. If gold is trading at $1740—he says $1750, $1780 resistance and $1720 and $1700 support. Silver–at $35.30 or whatever, $35.40, $35.50 resistance, then $35.80 and support at $35.20 then $35! This is worthless info IMO.
The interviews have become hype and advertisement for other interviews—the same stuff is said every day.
I’ve seen comments such as this from others increasingly about KWN—Maybe they want to collect on law suit settlements because they are collecting less on the website, who knows.
There does seem to be something odd about KWN. Virtually everything published on that site has the same tenor of hysterical urgency that Steve Quayle had with his Red Alert Euro Is Collapsing report last week. It also seems to be populated with a substantial number of billionaires and fund managers. Given their animosity to Silver Doctors, a site with real and substantive information, the shrill shilling of their newsletters and mining stocks does seem to relegate them to the billionaires baby wading pool. IMO
I hope this doesn’t get us in trouble with KWN. Having them get their dander up when someone posts their opinion on a free web site like SD seems pretty petty and meanspirited. I wonder what they are afraid of?
427 June 16, 2012 at 5:03 PMAG; Who knows what there afraid of ? I thought maybe the stuffed shirt crowed. ”does seem to relegate them to the billionaires baby wading pool. IMO” However why then SGT & FSN ? We are all about the same on the doom & gloom, Politics and opinion of government. SGT has an open tread but I have never participated there. I do know they do not have anything on You Tube ether. I da no!
Thanks 427 The above post basically sums it up for me: KWN are run by assholes.
KWN WTF? You ain’t that special
Right on SB;
BTW It’s been said a hundred times but should be repeated. When a country with a debt to GDP of over 1 to 1 hits rates of 7%, their goose is cooked. Spain can’t wiggle off the hook. They will NEVER repay this debt. Their home values have dropped 30% with another 25% expected They are a subprime nation destined to experience some serious hurt. The people have yet to wake up to the privations they will soon experience since their political leaders are both reflective liars as well as clueless in regards to the disaster that is brewing in their banking system, a system that is completely bankrupt and due for total collapse. Spain is the 12 largest GDP in the world with $2.25 trillion in government, corporate and personal debt. They cannot be allowed to fail but to bail them out could easily cost the world $5 trillion or more. That due bill will be laid at the world’s door step within a month; maybe even a couple of weeks. July will be a very interesting month. Once again, we step back from the brink with Greece and lurch back to the brink with Spain (and Italy) The Fed is going to be really busy working the Binford 1200
You’re right AG It will only get worse.
Since Silver Doctor’s Readers do not want to violat anything regarding KWN policies. I will keep this information on the front pages so as to no reader can miss it. All though it’s just a special set of KWN policies that apply hear at Silver Doctor’s alone we will comply.
Hell whats 5 trillion between friends it’s just debt, all fiat is debt. The whole world is in debt, how is anybody going to pay off debt with debt? Just print more fiat, I mean debt. Then we have more debt so we can pay more of our debt.
Funny as can be! I think they should just print all of us a million or two. That would fix everything. NOT!
All of these bail-out plans generally come with austerity and growth projections to make the masses feel good that there might be a light at the end of the tunnel for these ponzi-schemed countries. We know that real growth is the only alternative to hyper-inflating your way out of debt once a default occurs. This chart does not include today’s rise to 7.16%
SPANISH GOVERNMENT GENERIC BONDS – 10 YR NOTE 6-18-2012—-7.15800
+0.28400 +4.13%
However, the Spanish 10-year has really accelerated. In the Last 11 calendar days, It’s risen 1.15%. That’s an 18.9% increase. If we annualize this it’s (365/11)*18.9%=626%. I know their 10-year bond won’t increase at this rate for the whole year, but even at 50%, Spain could see a 12% ten year note by the end of the year. That will kill any growth you can hope for, or predict.
Make no mistake about it. Bailouts are a delay and denial mechanism of the real truth.
I wouldn’t be surprised if Italy crashes first as there are a lot of egos over there and not counting the gangsters controlling the government. Lol By the way I wonder if the Vatican will need a hand out also. LMAO
2oz I’ll take 2 million in debt and then transfer it into Gold and Silver!