Market Sentiment shifting

Sounds like the Russians got it right. Germany did not get their Gold back but got back new gold bars that the US had to buy and send them. Easily explains why it took so long, of course we all knew that anyway.

No wonder Russia keeps buying physical, they know the real truth!!

But of course Russia news in propaganda, right?

sputniknews.com/business/201702111050571...y-gold-repatriation/

Sounds like Germany might get it's gold back sooner, by end of 2017, but still it is only half of what they are suppose to own.

Once the relocation is completed, the Bundesbank will keep 1,236 tonnes in New York, 432 tonnes in London and the rest in Frankfurt. The current move involves 300 tonnes from New York and 374 tonnes from Paris.

Are they worried about something to get it sooner?

uk.reuters.com/article/uk-bundesbank-gold-idUKKBN15O192

Stan Druckenmiller, the billionaire investor with one of the best long-term track records in money management, said he bought gold in late December and January, reversing the sale he made after the U.S. presidential election.

"I wanted to own some currency and no country wants its currency to strengthen," Druckenmiller said Tuesday in an interview. "Gold was down a lot, so I bought it."

www.bloomberg.com/news/articles/2017-02-...sing-november-stance

Trump, Trump, Trump, the U.S. media is fixated on this guy, No surprise that Gold has pulled back some, pretty much how Ron outlined the resistance points.

What is great is the juniors don't care, they are doing their own thing based on their own fundamentals, more normal markets are back. Gotta love it

There is no doubt that Trump and his administration want a weaker $$, great for gold

U.S. Treasury Secretary nominee Steven Mnuchin said an “excessively strong dollar” could have a negative short-term effect on the economy.

“The strength of the dollar has historically been tied to the strength of the U.S. economy and the faith that investors have in doing business in America,” Mnuchin said in a written response to a senator’s question about the implications of a hypothetical 25 percent dollar rise. “From time to time, an excessively strong dollar may have negative short-term implications on the economy.”

www.bloomberg.com/politics/articles/2017...have-negative-impact

Did nobody Tell Trump he is suppose to toll the US$ strong dollar policy and not say what he really thinks??

Bullish for Gold going forward though

The US dollar slumped to a seven-week low against Japan’s yen late Tuesday, and continued to trade lower against a slew of currencies on Wednesday, after President-elect Donald Trump said that the buck was “too strong”.

www.independent.co.uk/news/business/news...-elect-a7532616.html

Gold at $1212 is now into Ron's 2nd target area, lets see how long it takes to punch through $1220 or do we see a bit of a pullback or consolidation first.

Commercials are still 125,000 contracts short but down a long way 300k level

Fundamentals of physical supply and demand remain positive, and are reinforced by the current extended regime of precious metals prices too low to justify expanded mine supply. Global mine output has plateaued; it now seems likely to decline through 2020 and perhaps into the middle of the next decade. As shown in the chart below, discoveries of new ore bodies are at a 25-year low, while the time required to bring new ore bodies into production continues to lengthen, and now stands at nearly 20 years.

Good article from Hathaway

tocqueville.com/insights/gold-strategy-investor-letter-4Q16

Dam Banksters, they always screwing around. One day and I think soon, the market will run them over. You can't get away with printing on this money forever. Trump should forget about Fake news and cut back on Fake $$

Very interesting a big jump in Gold swaps by the BIS (Bank of Int Settlements) after Golds rise after March 2016. They had 0 balance on the books.

The use of gold swaps by the BIS increased in the financial year ended March 31, 2011, with 409 tonnes of gold swaps reported. As this chart will show, that was the peak amount reported by the bank prior to this year:
March 2011: 409 tonnes.
March 2012: 355 tonnes.
March 2013: 404 tonnes.
March 2014: 236 tonnes.
March 2015: 47 tonnes.
March 2016: 0 tonnes.

As the table shows, the use of gold swaps by the BIS fell considerably up to March 2016, when the use of swaps appeared to have stopped.

There is not enough information in the monthly reports to calculate the exact amount of swaps, but based on the information in the BIS' December 2016 statement of account, the bank's gold swaps likely stood in excess of 480 tonnes as of the end of the calendar year.

This is the BIS' highest level of gold swaps recorded in recent times.

Either these swaps were used to manage the market or to help some banks with financial stress??



www.ft.com/cms/s/0/3e659ed0-9b39-11df-baaf-00144feab49a.html

Here are excerpts from the article:

"Some analysts speculated that the swap deals were a surreptitious bailout of the European banking system ahead of last week's publication of stress tests. But bankers and officials have described the transactions as 'mutually beneficial.' ...

"'The client approached us with the idea of buying some gold with the option to sell it back,' said one European banker, referring to the BIS.

"Another banker said: 'From time to time central banks or the BIS want to optimize the return on their currency holdings.'"

It is notable that none of these comments in the FT article focused on the gold market itself but implicitly accepted that gold was being used as collateral to support dollar loans to commercial banks.

An alternative explanation -- that the swap transactions were initiated by the BIS to place more unallocated gold in the hands of certain central banks -- seemed plausible, since the gold market was tight at the time.

Happy New Year to everyone!!! I posted my chart here from recent newsletter, is good to see Gold have it's first rally since October and hit my first target

Happy New Year all, time to get back at it. Gold looks to have bottomed in December as Ron and probably most here expected. We seen the 1st rally and hit the 1st target around $1180 yesterday, lets see where we go now, maybe some sideways action is in order for a while??