*¤ YESTERDAY IN GOLD & SILVER*
The gold price didn't do much in Far East trading, but tried to rally around noon in London...and then again once the London p.m. gold fix was in at 10:00 a.m. EDT...but both rallies met with the same fate...a seller of last report. After the second rally got capped, the gold price didn't do much for the remainder of the trading day in New York.
Gold's high price tick of $1,261.00 spot came shortly after 10:00 a.m. EDT.
The gold price closed the Wednesday session at $1,252.50 spot...up $10.10 on the day. Not surprisingly, with everyone in New York heading out early, the net volume was a smallish 117,000 contracts.
The silver price followed a similar path...and the blast off after the noon London silver fix probably made it past the $20 spot price mark for a moment...and a not-for-profit seller had a throw a fair amount of paper silver at it before the rally collapsed. The rally at the 3 p.m. BST gold fix met the same fate...and after that, the price traded flat for the remainder of the New York session.
Kitco recorded the New York high tick as $19.97 spot.
Silver finished the day at $19.72 spot...up 34 cents from Tuesday. Not surprisingly, with both rallies getting hit hard, net volume was pretty hefty...around 38,000 contracts.
*Platinum* got sold down a bit yesterday...and *palladium* traded sideways. Here are the charts...
The *dollar index* closed late Tuesday afternoon in New York at 83.54. Once trading began in the Far East on their Wednesday, the dollar rallied a hair...up to 83.68...by 9:00 a.m. BST in London. It was all down hill from there, with the spike low of 83.12 coming a few minutes after 11:00 a.m. in New York. The index recovered a handful of basis points from there...and closed at 83.24...down 30 basis points on the day.
The gold stocks chopped around in positive territory yesterday on Wednesday...and even though the gold price gained back every dollar it lost during the Tuesday trading session, the *HUI *was only up 1.68 percent by the early 1:00 p.m. EDT close.
It was the same story with the silver stocks. Even though the silver price gained back more than it lost on Tuesday, Nick Laird's *Intraday Silver Sentiment Index* gained back only 2.60%. It was down 5.01% on Tuesday, in case you'd forgotten.
(Click on image to enlarge)
The *CME's Daily Delivery Report *showed that Wednesday was another JPMorgan/Bank of Nova Scotia duet in both metals. There were 10 gold and 221 silver contracts posted for delivery within the Comex-approved depositories next Tuesday. In silver, Canada's Bank of Nova Scotia was the short/issuer on 202 contracts...and JPMorgan Chase was the only long/stopper of note, with 192 contracts in its proprietary trading account...and 22 contracts for its client account. The link to yesterday's *Issuers and Stoppers Report *is here.
There were no reported changes in either *GLD* or *SLV* yesterday...and no sales report from the* U.S. Mint*, either.
Over at the *Comex-approved depositories* on Tuesday, they didn't report receiving any* silver*...but they did ship 428,838 troy ounces out the door for parts unknown. The link to that activity is here.
They didn't report receiving any* gold*...but Canada's Bank of Nova Scotia reported shipping out a couple of kilo bars of the stuff...64.30 troy ounces.
I have the usual number of stories for a mid-week column...and I hope you find the time to read the ones that you deem worth your while.
*¤ CRITICAL READS*
-QE or not QE? That is the first tricky question for Mark Carney-
Mark Carney casts his first vote on the Monetary Policy Committee today. It will be a seminal decision, albeit one the rest of the country is unlikely to discover until the minutes of the meeting are published on July 17th.
The new Bank of England Governor has to decide whether to ape his predecessor, Sir Mervyn King, and call for more quantitative easing (QE), or vote with the majority of the MPC and leave the £375bn stock unchanged.
A bald look at the numbers should, in theory, make it easy. Carney appears to have joined just in time for the end of QE.
This news item appeared on the telegraph.co.uk Internet site yesterday evening BST...and I thank Manitoba reader Ulrike Marx for today's first story.
Read more...
-Downward Spiral: Southern Europe Remains Stuck in Crisis-
The sovereign debt crisis has been eating its way through the Continent for the last four years, despite the various remedies prescribed by crisis managers in Brussels and Berlin, and at the European Central Bank (ECB) in Frankfurt. The situation in the euro zone eased somewhat after ECB President Mario Draghi's announcement last summer that he intended to do everything possible to preserve the euro. But it is now becoming clear how deceptive this period of calm was. Since US Federal Reserve Chairman Ben Bernanke announced his aim to gradually pump less money into the financial markets, interest rates have gone up considerably in both the United States and Europe.
With the sedative effect of cheap money now diminishing, it is becoming clear what risks still lurk in Europe's debt-ridden economies, and that many problems remain unsolved. Sovereign debt is rising rapidly, not just in Spain, but also in Greece, Italy and Portugal, despite austerity policies and impressive reform efforts. The countries have significantly reduced spending in response to pressure from the so-called troika, consisting of the European Commission, the ECB and the International Monetary Fund (IMF). But the recession has led to a concurrent decline in revenues. In addition, devastatingly high unemployment has led to higher government spending.
It has created a vicious downward spiral. And economists have been left to argue over whether and how the countries in question might be able to emerge from it.
This story was posted on the German website spiegel.de yesterday afternoon Europe time...and it's the first contribution of the day from Roy Stephens.
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-France and Germany eat their words on U.S. trade talks-
France and Germany have backed down on threats to suspend US trade talks, after the US offered to set up more "working groups" on data protection.
EU leaders meeting in Berlin on Wednesday (3 July) for a summit on youth unemployment said the US trade negotiations will start next week as planned.
The announcement comes after France and Germany led EU criticism of the US in recent days.
This article, filed from Berlin, appeared on the euobserver.comInternet site just before midnight last night Europe time...and it's the second contribution in a row from Roy Stephens.
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-Snowden Search: Bolivia Irate over Forced Landing-
Bolivia is furious that a plane carrying President Evo Morales was forced to land in Vienna on Tuesday night after false rumors circulated that NSA whistleblower Edward Snowden was on board. The country has called it a "direct attack" on the leader.
Bolivian President Evo Morales hadn't intended to spend Tuesday night enjoying the comforts of the VIP lounge in Vienna's international airport. But he apparently had little choice. Just after midnight, his government plane -- heading back to South America after attending an energy conference in Moscow -- was forced to land in the Austrian capital.
Several European countries had allegedly denied the Bolivian aircraft over flight rights after rumors began flying that National Security Agency whistle-blower Edward Snowden was on board.
This *very interesting* news item appeared on the German websitespiegel.de early yesterday afternoon...and it's another offering from Roy Stephens.
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-Egypt's President Morsi ousted in coup-
The armed forces ousted Egypt's first democratically elected president Wednesday after just a year in power, installing a temporary civilian government, suspending the constitution and calling for new elections. Islamist President Mohammed Morsi denounced it as a "full coup" by the military.
After the televised announcement by the army chief, millions of anti-Morsi protesters in cities around the country erupted in delirious scenes of joy, with shouts of "God is great" and "Long live Egypt."
Fireworks burst over crowds dancing and waving flags in Cairo's Tahrir Square, epicentre of the 2011 uprising that ousted autocrat Hosni Mubarak. Now it was one of multiple centres of a stunning four-day anti-Morsi revolt that brought out the biggest anti-government rallies Egypt has seen, topping even those of 2011.
This AP story was posted on the cbc.ca website in the wee hours of yesterday morning...and I thank Roy Stephens for another contribution to today's column.
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-Egypt Orders Mass Arrests Of Muslim Brotherhood Members-
Egyptian police have issued arrest orders against 300 leaders and members of former President Morsi's Muslim Brotherhood, AFPreports.
MENA, the state news agency, reported police were arresting Morsi allies "who are accused of inciting violence and disturbing general security and peace".
Two prominent members close to Morsi have already been detained, including the head of the Freedom and Justice Party — the Muslim Brotherhood's political arm, and the deputy head of the Islamist movement, according to Ahram Online.
This article appeared on the businessinsider.com Internet site early yesterday evening EDT...and my thanks go out to Roy once again.
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-Iran's Rouhani urges end to meddling in private lives-
President-elect Hassan Rouhani called on Wednesday for the government and powerful clergy to end interference in the private lives of the Iranian people, free up Internet access and allow state media to be more open about Iran's problems.
Rouhani's comments began to flesh out his message of moderation at home and better relations abroad that contributed to his surprise election victory last month.
His election prompted a huge outpouring of support from Iranians hungry for change after eight years of domestic security crackdowns and international confrontation under hardline President Mahmoud Ahmadinejad.
"There shouldn't be any rift or division between the government or the clergy especially at a time when people have pinned their hopes on seeing some sort of change in society," Rouhani, a mid-ranking cleric, told fellow clergymen in Tehran.
This Reuters story, filed from Dubai, was posted on their website early yesterday morning EDT...and it represents Roy Stephens' final offering in today's column.
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-Two King World News Blogs/Audio Interviews-
The interview is with *Louise Yamada*...and it's headlined "3 Fantastic Charts Plus Commentary on Gold and Stocks". The audio interview is with *Dr. Benn Steil*.
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-The London Gold Market: What’s behind the smoke and mirrors?-
The London Gold Market, accounts for over 90% of all global over-the-counter (OTC) activity. In 2011 it accounted for 86% of total activity within the global gold market, 90% of which was spot transactions.
In comparison COMEX in New York accounted for just under 10% of total volume in 2011. Also unlike COMEX, the London gold market is entirely inaccessible to individuals and retail trade, the minimum amount of gold traded (per single transaction) is 1,000 oz.
It will come as no surprise to readers when we say that the London market is exceptionally opaque.
It certainly is...and everyone that says they know what's happening inside the London bullion market is telling a big fib. This longish article was something I dug out of a GATA release yesterday.
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-Sudan gold mine clash 'kills 1, wounds others'-
A clash between Sudanese police and villagers over a gold mine killed one person and wounded several others, residents told AFPon Wednesday.
The incident occurred on Tuesday southwest of Gedaref town in eastern Gedaref state, they said.
"People in Samien village tried to stop miners from digging because they claim this is their land," one resident said.
The clash broke out after the local district chief arrived with police, he said.
This AFP story, filed from Khartoum, was posted on thefoxnews.com Internet site yesterday...and I thank Marshall Angeles for bringing it to our attention.
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-Gold smuggling rampant in India-
Gold smuggling has gone up several notches in India. The Air Intelligence Unit of the Mumbai Customs thwarted an attempt to smuggle gold into the country from Dubai. This is the sixth attempt thwarted in the past seven days.
On July 3, three passengers were arrested from the Mumbai International airport for allegedly trying to smuggle in 2.86 kilo of gold worth $112,883 (Rs 6 million) from Dubai in three separate cases.
The craze to bring in gold into India has reached unprecedented levels. Authorities said the smuggling from Dubai is rampant, since gold costs $1,659 (Rs 100,000) more per kilo in Mumbai. Bringing it in from Dubai works out cheaper for the consuming class in India.
The seizure of 94 gold biscuits worth $436,653 (Rs 26 million) from five Sri Lankan nationals at Chennai airport late last month has also exposed an active racket of smugglers and money launderers with Dubai links.
No surprises here...and it pretty much goes without saying that only a tiny fraction of the smuggled gold is actually being found. This news item was filed from Mumbai...and posted on themineweb.com Internet site yesterday. It's courtesy of Ulrike Marx.
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-Huge premium on gold in India as government tries to destroy the industry-
India's gold imports in June are estimated to have fallen drastically to 35-40 tonnes, less than a quarter of what the purchases in May were because of state restrictions, triggering a sharp rise in premiums in the local market and raising a question mark on the survival of small jewellers.
The acquisition cost of the yellow metal has shot up as bullion dealers are now charging a premium of up to Rs 350 per 10 grams over and above the metal's international price, up from only Rs 40 two weeks ago.
"It is becoming increasingly difficult to get supplies. Most banks have stopped importing gold which has created a supply shortage in the Indian market. Bullion dealers are offloading gold that they stocked during April and May at a high premium," said Bachhraj Bamalwa, director of Nemichand Bamalwa & Sons.
Bamalwa said that if situation does not improve in the next fortnight, the survival of a large number of unorganised players will be at stake. "Nearly 3.5 crore people are attached to this trade and their jobs now hinge on the government's move," he said.
This news item, filed from Kolkata, was posted on the Times of India website yesterday, and I borrowed it...and the headline...from a GATA release. It's *definitely worth reading*.
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-Việt Nam: Gold buyers disappear-
Nguyen Ngoc Trong, Phu Nhuan Jewelry Company sales director, said that the company transacted fewer than 500 gold taels on Monday, only half of last week’s daily average, of which it bought 70% of the volume.
Demand for gold has reduced as people are concerned about further gold price decline on the world market.
Meanwhile, people late last week thought that the central bank would stop gold auctions but the agency then has announced to put up 40,000 gold taels for sale yesterday, July 2.
Therefore, they did not buy up gold to wait for prices to drop further, Trong said.
There's something lost in the translation, but you should be able to figure it out. This story was posted on the vietnamnet.vn Internet site yesterday...and my thanks go out to reader "Brandon in Việt Nam".
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Reported by Proactive Investors 50 minutes ago.