ZH: Another Conspiracy Theory Becomes Fact: The Fed's "Stealth Bailout" Of Foreign Banks Goes Mainstream.

ZeroHedge.

End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix. $TNR.v $MUX $GLD $ABX

 

Jim Puplava: The Swiss Gold Initiative With Luzi Stamm, Member of the Swiss National Council $TNR.v $MUX $GLD $GDX

  "Jim Puplava discusses the groundbreaking developments in Switzerland where the real democracy can be in action now. Even debates about the Gold and Money Printing will be unprecedented on the national level and if this decision finds the support of the people Central Planers will be in horror."

End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix.

ZeroHedge:

Another Conspiracy Theory Becomes Fact: The Fed's "Stealth Bailout" Of Foreign Banks Goes Mainstream

Back in June 2011, Zero Hedge first posted:

• "Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went"

which we followed up on various occasions, most notably with

• "How The Fed's Latest QE Is Just Another European Bailout" and
• "The Fed's Bailout Of Europe Continues With Record $237 Billion Injected Into Foreign Banks In Past Month."

With the following key chart:

Of course, the conformist counter-contrarian punditry, for example the FT's Alphaville, promptly said this was a non-issue and was purely due to some completely irrelevant microarbing of a few basis points in FDIC penalty surcharges, which as weexplained extensively over the past 3 years, has nothing at all to do with the actual motive of hoarding Fed reserves by offshore (or onshore) banks, and which has everything to do with accumulating billions in "dry powder" reserves to use for risk-purchasing purposes (alas understanding that would require grasping that reserves are perfectly valid collateral to use as margin against purchase of such market moving products as e-mini futures, which in turn explains why traders usually don't end up as journos).

Fast, or rather slow, forward to today when none other than the WSJ's Jon Hilsenrath debunks yet another "conspiracy theory" and reveals it as "unconspiracy fact" with "Fed Rate Policies Aid Foreign Banks: Lenders Pocket a Spread by Borrowing Cheaply, Parking Funds at Central Bank"

Wait... the Wall Street Journal said that? Yup. Read more on ZeroHedge."

Gold Market And The Stock Bull Topping $TNR.v $MUX $NG $ABX $GLD $GDX

  We have the very interesting picture in Gold now. It is moving up after the strong bullish candle on weekly chart painting the Head And Shoulders Bullish Reversal. As we had discussed before, we are not the only one watching these charts, but it is getting more and more difficult for the banksters to keep it down with the ongoing manipulation. Adam Hamilton is one of the few technicians we are following very close and a lot of his calls were right on the money in the past, he is highly recommended for your own homework.

Kirill Klip.:

UK Will Send Traders Rigging The Markets To Jail. Will It Include Gold Manipulation And Naked Short Selling?

  "We have a small victory for the common sense in the UK today. BBC reports "Osborne pledges criminal action against banks and traders":

"More action to tackle wrongdoing in the financial sector will be unveiled by Chancellor George Osborne on Thursday.

The measures will include making the manipulation of the foreign currency markets by banks a criminal offence. In a keynote speech he will promise to target "the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them". 

There has been increasing concern about whether the multi-trillion pound foreign exchange market was rigged. In his annual Mansion House speech, Mr Osborne will pledge the extension of legislation used to clean up after the Libor interest rate-fixing scandal. BBC."

  And the very important piece for us here:

As well as bringing the forex currency market under this legislation, it will be extended to those who trade in commodities, and also to the fixed income market, where the most common type of products traded are bonds. BBC."

Eric Sprott: The Chinese Gold Vortex - Do Not Miss This Golden Opportunity GDX TNR.v MUX

  "CS. Gold is building a very strong reversal pattern after resent correction. The only problem is that we are not the only one watching this chart closely and manipulators are trying to paint the breakdown on the chart above. In the normal market this picture will indicate very strong Bull market, building the base after The Golden Cross to make its Second Bull Leg Up. We have the close right above the MA200 at $1,300 and Bollinger Bands suggest that volatility will increase dramatically. Will "They" be able to break Gold down again? This is the question which will separate boys from the men again. The most important for us that this technical picture reflects the fundamentals Eric Sprott is talking about in his article. 

  Should Gold confirm this reversal by breaking Up above the MA50 at $1,317 Gold Junior Miners with the strong stories will finally start to move. This very illiquid and speculative type of investments in Gold equities normally start to participate in the stage two of the Gold Rally, when liquidity from professional players is searching for the new "ten-baggers" after booking the profits from the initial Gold Breakout. Every market is the function of the supply and demand, with Equities hitting all-times-highs and moving into the weak "Sell In May" season Gold Junior Miners have all chances to remind why they are considered to be so volatile. The way up normally is a very dramatic move in magnitude after such an obliteration as you can see on the chart below. The most important indicator here is the Volume - money is coming into the sector. Read more"

 ZEAL:

Stock-Bull Topping 2

Adam Hamilton     June 13, 2014

The US stock markets’ Fed-driven melt-up has accelerated again in recent weeks, with a string of new nominal record highs.  This has reignited truly extraordinary levels of greed, euphoria, and complacency.  But for traders who have witnessed past bull toppings, there is an ominous sense of deja vu.  It turns out this past year’s strong stock-market action nearly perfectly matches that leading into the last bull-market top in 2007.

US Dollar Dives Below 79.00 - How Long Can They Keep Gold Down? GLD GDX TNR.v MUX NG ABX

  US Dollar dives this morning and is breaking down the all-crucial 79.00 line in the sand. At the moment of writing we have 78.94. Our rhetorical question of the day is how long manipulation can keep Gold down in this environment? Now yesterday's attack on Gold can be put in the new totally dramatic perspective of today's US Dollar Melt Down.

US Dollar Meltdown - Will Gold Start To Move Finally Up Now? GLD GDX TNR.v MUX NG ABX

  "US Dollar today is in a total meltdown mood and is holding just a notch above the psychologically crucial 79.00 level at 79.09 now. Gold is moving between 1,300 and 1,317, which was tested yesterday. The both levels are crucial as we have discussed before. Move above MA50 at $1,317 will ignite the new Rally and short covering will provide the fuel for the launch of Leg Up Two in this Gold Bull market."

Eric Sprott: The Chinese Gold Vortex - Do Not Miss This Golden Opportunity GDX TNR.v MUX

  CS. Gold is building a very strong reversal pattern after resent correction. The only problem is that we are not the only one watching this chart closely and manipulators are trying to paint the breakdown on the chart above. In the normal market this picture will indicate very strong Bull market, building the base after The Golden Cross to make its Second Bull Leg Up. We have the close right above the MA200 at $1,300 and Bollinger Bands suggest that volatility will increase dramatically. Will "They" be able to break Gold down again? This is the question which will separate boys from the men again. The most important for us that this technical picture reflects the fundamentals Eric Sprott is talking about in his article. 

  Should Gold confirm this reversal by breaking Up above the MA50 at $1,317 Gold Junior Miners with the strong stories will finally start to move. This very illiquid and speculative type of investments in Gold equities normally start to participate in the stage two of the Gold Rally, when liquidity from professional players is searching for the new "ten-baggers" after booking the profits from the initial Gold Breakout. Every market is the function of the supply and demand, with Equities hitting all-times-highs and moving into the weak "Sell In May" season Gold Junior Miners have all chances to remind why they are considered to be so volatile. The way up normally is a very dramatic move in magnitude after such an obliteration as you can see on the chart below. The most important indicator here is the Volume - money is coming into the sector. More."

US Dollar Meltdown - Will Gold Start To Move Finally Up Now? GLD GDX TNR.v MUX NG ABX

  

  US Dollar today is in a total meltdown mood and is holding just a notch above the psychologically crucial 79.00 level at 79.09 now. Gold is moving between 1,300 and 1,317, which was tested yesterday. The both levels are crucial as we have discussed before. Move above MA50 at $1,317 will ignite the new Rally and short covering will provide the fuel for the launch of Leg Up Two in this Gold Bull market.

Eric Sprott: The Chinese Gold Vortex - Do Not Miss This Golden Opportunity GDX TNR.v MUX

  CS. Gold is building a very strong reversal pattern after resent correction. The only problem is that we are not the only one watching this chart closely and manipulators are trying to paint the breakdown on the chart above. In the normal market this picture will indicate very strong Bull market, building the base after The Golden Cross to make its Second Bull Leg Up. We have the close right above the MA200 at $1,300 and Bollinger Bands suggest that volatility will increase dramatically. Will "They" be able to break Gold down again? This is the question which will separate boys from the men again. The most important for us that this technical picture reflects the fundamentals Eric Sprott is talking about in his article. 

  Should Gold confirm this reversal by breaking Up above the MA50 at $1,317 Gold Junior Miners with the strong stories will finally start to move. This very illiquid and speculative type of investments in Gold equities normally start to participate in the stage two of the Gold Rally, when liquidity from professional players is searching for the new "ten-baggers" after booking the profits from the initial Gold Breakout. Every market is the function of the supply and demand, with Equities hitting all-times-highs and moving into the weak "Sell In May" season Gold Junior Miners have all chances to remind why they are considered to be so volatile. The way up normally is a very dramatic move in magnitude after such an obliteration as you can see on the chart below. The most important indicator here is the Volume - money is coming into the sector. More."

Huge Miss In Jobs Report: +113k Only - Sends Gold Sharply Higher TNR.v, MUX, GDX, GLD, SLV

 

  Now let's listen to all excuses and polish the #taperpause on TWTR. Gold needs to close above $1270 to start the mother of short squeeze. Is this number bad enough to be "good" again to levitate the markets or we can move close to Thomas Demark 60% plunge of S&P 500? After everything what FED has done to 'save the economy" we can hardly see this as happening, expect the life support to be plugged in again.


ZeroHedge:

January Payolls Big Miss Again At 113K Below 180K Expected, December Unrevised

CNBC: Thomas Demark Calls For Risk of 60% Crash In S&P 500

Gold Goes Vertical Above $1270 On Weak ADP Report GLD, MUX, TNR.v, GDX

  "Weak ADP report sends Gold to breakout above $1270 this morning with high of $1275 now - the close above $1270 will start the major short squeeze fireworks. We can expect more talks on Taper pause and this "must buy correction" in the general markets is getting uglier  with every slide lower."

Chinese Gold Rush Heating Up MUX, TNR.v, GDX, GLD, ABX, RGLD, GG

"We have another very important confirmation of the strong demand from China for physical Gold in 2014. With today's move above $1265 Gold needs to clear $1270 for the clean break out and massive short squeeze."

Rob McEwen: Will Gold Soar on the Dow Drop? MUX, TNR.v, GDX, GLD, SLV

 "Rob McEwen is in demand now about his views on Gold with equity bubble being challenged last few days. Market manipulations can not be run forever and reality will be settling in at some point. This time can be very close now with Durable Goods report out at  - 4.3% (!) in December vs 2.6% in November. Last Jobs Number disaster can be not so "out of range' now as the bubble Media would like us all to think. Gold is at the very important juncture now and decisive move above $1270 will create the short covering fireworks."

Gold Jumps As Mother Of Short Squeeze Arrives TNR.v, MUX, GDX, GLD

  "Gold jumps today more than 2% and is up now $28 to $1265 level. The real fireworks will be started after Gold cuts through $1270. Few news appear to be behind the move: another set of rumours of relaxing Gold import policy in India, bad economic data from China with PMI below 50 and pumped rumours in the western press about coming default in one of the shadow banking system products. US markets are sharply down today on Jobless claims and dismal Existing Homes Sales. 

  But the real story is US Dollar which is almost in a free fall and is crossing 80.60 level to the downside. This time we have the normal correlation and falling US Dollar is sending Gold to confirm its break out from 2013 Double Bottom at $1180."

There Is No German Gold Left At The New York FED GLD, MUX, TNR.v, GDX

Clive Maund: Gold Market Update TNR.v, MUX, RGLD, ABX, GG, GDX, GLD

  

  Clive Maund provides a very comprehensive technical picture on Gold, Gold Miners and general equity markets.  He was spot on the money with his call on Jan 2nd 2014 -  "Broad US Stock Market Update - No New Paradigm - Get Out Now!!" and we highly recommend to study his work. With ongoing sell off in the equity markets and new scare about the emerging markets rising Gold physical demand is the very important indicator to follow now. China has become the top Gold consumer in 2013 and now demand for Gold is picking up all over the world including the U.S.

U.S. Mint Gold-Coin Sales Jump 63% in January; Silver Triples TNR.v, MUX, GLD, GDX, SLV

"How January goes, so the year does - we will see whether this year will prove it to be right again, but so far general equity markets are down in January and Gold, Silver and Miners are strongly up for the month. It is very important to see the demand for physical Gold and Silver is picking up not only in China, but in US as well. Similar reports are coming now from Mints all over the world."

Kitco:

Gold Market Update

Gold’s technical picture has improved since the last bullish update just over a month ago, but it has still not broken out the intermediate downtrend that started back last August, which we can see drawn on the 8-month chart shown below.

On Friday the gold price arrived at a short-term target at the upper boundary of the downtrend, which is a good point for it to turn down again, especially as its moving averages are still in bearish alignment, and world markets have started to tank, which was predicted on the 2nd January on the site in the article, more about which later. If it does turn down again shortly bulls will want to see continued basing action above its lows of last June and July, and December leading to an upside breakout from this downtrend.

The longer-term picture for gold continues to look promising. On its 14-year log chart we can see that it is close to the lower boundary of the major uptrend in force from 2001. This is a supremely important uptrend as it has supported gold’s price throughout its bullmarket, even including the time when it plunged in 2008 at the time of the market crash, when it didn’t even reach it. While it is expected to stay within this uptrend it is clear that if it should fail the price would probably drop immediately to the strong support level in the $1000 area.

The 20-year arithmetic chart for gold underlines the importance of its not breaking down below recent lows, as in addition to being at the supporting long-term trendline shown on its 14-year log chart, gold is at a supporting long-term parabolic trendline, whose origins lie at the 2001, and failure of both of these will mean that it is no longer in a bullmarket, even being as generous as possible.

Gold’s latest COT continues to look strongly bullish, with Commercial short positions continuing to be near record lows, despite a slight increase in recent weeks as the price has recovered. This supports our contention that gold is bottoming here.

Public opinion towards gold is still at a very low level consistent with the metal being at a cyclical low, and provides another indication that it is bottoming.

Although Rydex Precious Metals assets have picked up in recent weeks as gold has recovered, they have been lifting off abysmally low readings. This is another sign that gold is bottoming, because the Rydex traders are notorious for being on the wrong side of the trade, so much so that they can be described as having turned it into an art form. Their minimal interest in the sector bodes very well indeed.

We were rather bullish on the dollar index in the last update, partly due to its positive COT, and it did rally into early last week, but then it dropped hard on Thursday, and its COT picture has weakened to more neutral. Although the overall trend of the dollar remains neutral whilst it is in the range 78 – 85, Thursday’s sharp drop may presage failure of the important support level shown on the 6-month chart shown below. If this support did fail it would help to levitate the gold price.

In the last update we were of the opinion that the HUI index might drop a little more before a final bottom is reached, to the strong support level shown on its 14-year chart below, and it still might, given that that it is still below its falling 200-day moving average. That didn’t stop us buying a range of quality juniors likeMinco Gold and Richmont Mines, however, because they were so cheap late last month that they were irresistible, especially as the juniors as a group were showing signs of turning up.

Sentiment towards gold stocks has improved significantly in recent weeks, but certainly not enough to give rise to concern for bulls, as the following chart makes plain.

One interesting development in recent weeks has been the volume surge in juniors on the rally. They rose on record volume. This is viewed as very bullish, as a sign that the sector is indeed reversing to the upside. We can see this volume surge on the 5-year chart for the GDXJ shown below, and how it has driven up its volume indicators. So while many observers are probably yawning disdainfully and dismissing the runup in PM stocks over the past few weeks as “just another bearmarket rally” this high volume suggests that it is anything but, and that we are witnessing the birth of a new bullmarket. What if the broad market tanks, won’t that stop it? – probably not. After all, PM stocks dropped while the broad market rose, so why shouldn’t they rise when the broad market falls? (sometimes this work can be so simple). Our tactics therefore are to seize on any short-term dip to load up on the best PM stocks.

There was a vicious plunge in US (and other) stock indices late last week, especially on Friday. This came as no surprise to us with the clearest possible warning being posted on the site on the 2nd of this month in BROAD US MARKET update – NO NEW PARADIGM – GET OUT NOW!! Could this be the start of a major panic selloff? - it could, especially given the almost universal bullishness that is at large in the world now.

Our guide for a more definite indication that the wheel is coming off the broad market is the lower blue trendline shown on our 5-year chart for the S&P500 index below – if the market makes a significant breach of this supporting trendline we could see an absolute bloodbath that would quickly go global.

Clive Maund
clivemaund@gmail.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication."