• Tag Archives Asia
  • Demand for Physical Gold Up, Supply Down in First Half of 2017

    It’s easy to get caught up in what the Fed will do next, or the latest political brouhaha in Washington D. C. And of course, this stuff matters. But when it comes to gold, you should never lose sight of fundamentals.
    Nothing is more fundamental than supply and demand. Based on the GFMS Gold Survey 2017 H1 Update Outlook, the fundamentals for gold are trending in a positive direction. Demand is pushing upward, while supply is falling.
    Demand for physical gold rose to 1,895 tons in the first half of 2017, a 17% increase over the same period last year.
    Comparing the first and second quarter of this year also reveals an upward trend. Demand climbed in Q2 2017 to 957 tons. That was up from 938 tons in Q1, a 2% increase.
    Meanwhile, total supply dropped 5% in the first half of the year. Mine output was stagnant, falling by 0.2%. Production dropped precipitously in China and Australia, the world’s number one and number two producers. The amount of scrap gold also fell, helping to drive the decline in supply.
    In many ways, the demand increase signals a return to normalcy after a tumultuous 2016.
    After the rollercoaster ride of events for the gold market in 2016, from a jewelers’ strike to Brexit to Trump to demonetization, 2017 has avoided similar dramatic events in the first half, at least from a gold perspective with far right candidates seeing little success in a range of European countries. Indeed the first half of this year has arguably been more of a reversion to normality across much of the gold market, with neither the highs (of ETF demand) or lows (of truly pitiful Asian demand) that were recorded in the first half of 2016 being repeated.’

    This post was published at Schiffgold on JULY 27, 2017.


  • Gold Price Jumps in Dollars as ‘Low-Rate Yellen’ Gets Trump’s Backing

    Gold price gains continued for Dollar investors on Thursday but held flat for other traders as the US currency touched its lowest Euro value since January 2015 following yesterday’s “no change” decision from the Federal Reserve.
    “The actual path of the federal funds rate will depend on the economic outlook as informed by incoming data,” said the Fed’s July statement, seemingly delaying a move to start reducingits $4.6 trillion holdings of QE-bought Treasury and mortgage-backed bonds.
    Asian stock markets rose – as did most commodities and major government bond prices – but European equities then slipped as the Dollar bounced from its new 30-month lows versus the 19-nation single currency.
    Gold priced in Dollars today set its highest London benchmarking since 14 June at $1262 per ounce.
    But priced in Euros, gold fixed at only a 3-session high. The UK gold price in Pounds per ounce reached only a 2-session high.
    Thursday morning’s Dollar price stood 2.0% above the 2017 average to date.

    This post was published at FinancialSense on 07/27/2017.


  • Asian Metals Market Update: July-27-2017

    Factors which can affect markets
    Short covering and renewed building of long positions will be there in gold and silver if they continue to rise today and tomorrow. If gold rises after the US July nonfarm payrolls (on 4th August) then I expect it to rise to $1508.10 before the end of this quarter. Short term gold and silver are bullish. Medium term to long term will trend after the US NFP will be the key.
    Expectation that the pace of interest rate hikes will be slower than markets discounted resulted in a crash of US dollar and zoom of gold. Copper had already risen before the FOMC so the impact was not felt. Next in line is next week’s US July nonfarm payrolls. Interest rate chapter of the Federal Reserve is closed for now. Technically a higher close today and tomorrow in gold, silver, copper and crude oil can result in another five percent gains by next week.

    This post was published at GoldSeek on 27 July 2017.


  • Turkey gold imports still riding very high — Lawrie Williams

    By our reckoning, Turkey has imported some 174 tonnes of gold in the first half of the current year. This reflects a degree of political turmoil both before and after the April referendum, which gave President Erdogan sweeping additional powers, but also Erdogan’s advice late last year that citizens should buy gold or Turkish lira rather than dollars in converting foreign currency or as a hedge against future uncertainties. It looks as though his advice has been well heeded as far as gold is concerned.
    This year’s imports to date have already exceeded the 106 tonnes imported in full year 2016, which in turn was more than double the amount imported in 2015. Thus this year’s figures represent an enormous increase on prior years’ figures and probably puts Turkey currently in place as the world’s third largest net importer of gold, after China and India.
    With Chinese gold demand remaining reasonably strong and Indian demand hugely up in the first half of the year ahead of the new GST imposition, gold flows from the West to the Middle East and South and East Asia have been very strong in the first half of the year and have probably accounted for just about all of the world’s new mined gold, which puts physical metal in short supply in the west.

    This post was published at Sharps Pixley


  • Hyundai-Kia Brutally Crushed in China, Mauled in the US

    Its largest & second largest markets. In how much trouble is it?
    Hyundai Motor Group is getting brutally crushed in its largest market, China, where it is, or rather was, the third largest automaker behind GM and Volkswagen. And it is getting mauled in its second largest market, the US, where it is the seventh largest automaker behind the Big Three US automakers and the Big Three Japanese automakers.
    Hyundai Motor Group came about in 1998 after the Asian Financial Crisis, when it obtained a controlling stake in Kia after Kia went bankrupt. The Korean conglomerate, in addition to automakers Hyundai and Kia, has other affiliates, including Hyundai Steel, logistics company Hyundai Glovis, and auto components supplier Hyundai Mobis, all of which are listed separately on the Korean stock exchange.
    These entities support and supply the automakers Hyundai and Kia and are dependent on what the automakers sell. And both automakers are in the same boat in China, where things were already hard before the 2017 collapse began.

    This post was published at Wolf Street on Jul 25, 2017.


  • Asian Metals Market Update: July-25-2017

    Factors which can affect markets
    Gold and silver need to break and trade over $1262 and $16.64 for another wave of rise. Sell off will be there if gold does not break $1262 and silver does not break $16.64. Trend after the FOMC statement will be the key. Cautious optimism for gold and silver despite the bullish technical. Crude oil seems to have formed a short term floor around $44 while copper seems to be in the race to outperform silver and zinc.
    Any reduction in Trump related risk is the only key factor that can cause precious metals to move into a short term bearish phase. I still expect an October interest rate hike by the Federal Reserve. Whereas markets are factoring in a December interest rate hike. One needs to watch for Trump related news as US economy is on a strong footing. Mild slowdown in US economy (if any) will be cyclical due to advent of American summer driving season.

    This post was published at GoldSeek on 25 July 2017.


  • S&P Futures Bounce As VIX Hammered, Europe “Euphoric”

    After sliding to 3 month lows on “car cartel” concerns yesterday, European stocks have rebounded after three days of declines, while oil extended gains after Saudi export cuts, with Brent rising above $49 and WTI just shy of $47. Asian stocks fell while S&P futures rose 0.2% to 2,473, putting yesterday’s GOOGL drop on plunging Costs-Per-Click in the rearview mirror.
    Helping today’s episode of global, pervasive complacency is the VIX which was hammered early by 3% in early Tuesday trading, down to 9.17. As previewed on Monday, the dollar rebounded after dropping to its lowest since August as investors await Wednesday’s U. S. interest rate decision; the greenback strength sent Gold lower for the first time in four days.
    US TSYs sell-off in relatively heavy volume after a large futures block trade in London hours and Bunds decline as strong German IFO data weighs. The dollar rallied from overnight low against G-10 and UST move helps USD/JPY trade through yesterday’s high.

    This post was published at Zero Hedge on Jul 25, 2017.


  • Countries Are Ramping Up On Gold Purchases As The Dollar Takes A Dive – Episode 1340a

    The following video was published by X22Report on Jul 24, 2017
    Existing home sales slump, this is the weakest summer since 2011, this is not a good sign. Caterpillar sales increase because of the purchases from China and the Asian sector, this is fading already. Obama’s economy was one of the weakest economies we have seen since 1971. IMF forecast for US growth has been revised lower, it also revised global growth. Visa and other credit card issuers are pushing a cashless society to increase profits through transaction fees. Turkey and many other countries are purchasing a huge amount of gold. Janet Yellen confirms that the US dollar is collapsing.


  • Asian Metals Market Update: July-24-2017

    News will be the key. Traders and short term investors should be very careful over the next two weeks. There is lot of economic news as well as political news which can result in prices zooming one day and nosediving the next. Day traders should also trade very carefully on days when prices range trade.
    Gold and silver will continue to rise as long as problems with Trump persist. FOMC meet along with other US economic data releases this week can result in a correction but may not move them into a short term bearish phase. I see renewed interest in traders to go for short US dollar and long bullion. Industrial metals also rose due to US dollar weakness.
    There is no FOMC meet in August. US economic data releases from next week till September’s FOMC meet will decide the number of interest rate hikes this year and in the first quarter of next year.

    This post was published at GoldSeek on 24 July 2017.


  • Caterpillar Retail Sales Post Longest Winning Streak In 51 Months

    Caterpillar’s great depression ended four months ago, when in March following a record 51 consecutive months of annual declines, its global retail sales posted the first, if modest, monthly increase growing by 1% on the back of a surge in Chinese and other Asia/Pac sales. Since then the trend has accelerated, and in June the company reported that Asia Pac sales rose by 40% Y/Y, which however appears to the next cyclical slowdown following increases of 46%, 47% and 49% in the March-May period. Just as notably, retail sales in the US rose by 2% again, the best performance since May 2015.

    This post was published at Zero Hedge on July 24, 2017.


  • European Stocks Fall To 3 Month Lows On “Carmaker Cartel” Fears, Sliding PMIs; US Futures Lower

    In a mixed session, which has seen Asian stocks ex-Japan broadly higher, the European Stoxx 600 index dropped as much as 0.6% after data Markit PMI data signalled euro-area economy grew in July at its slowest pace in six months while carmakers extended declines on continued concern about antitrust collusion in the industry. Germany’s DAX Index was hardest-hit euro-area benchmark, down as much as 0.8%. Autos continued to be the worst-performing sector on the Stoxx Europe 600 after EU and German regulators said they are studying possible collusion among German automakers. Der Spiegel magazine reported on Friday that BMW, Daimler and Volkswagen may have cooperated for decades on technology.
    ***
    Concerns have risen that with the Euro trading near its strongest level in 2 years and appreciating 11% against the USD YTD, it may weigh on exporters’ earnings; 1.20 on the EURUSD is being seen a key barrier beyond which European earnings will suffer. As a result, the euro headed for its first decline in three days as data showed the region’s economy cooling at the start of a week packed with earnings results and a Federal Reserve rate decision. Stocks were dragged down for a second day by carmakers amid a collusion probe.

    This post was published at Zero Hedge on Jul 24, 2017.


  • Market Talk- July 21st, 2017

    We did eventually see a mixed close in US with the NASDAQ setting new gains but the late rally failed to convince Asian markets of the rally and having seen ECB unchanged, we saw Asian indices small down. It was a reasonably light session to close the week as main core markets drifted. The Nikkei watched the yen trade better (last seen trading towards the 110 handle) so having a negative effect on stocks resulting in a negative -0.2% close. Shanghai and Hang Seng gave a little back also after the recent consistent positive momentum, which is a fair performance when considering recent currency strength. Top talking points were surrounding the disconnect between the bond and stock markets, but also the weakness in the USD and the strength in gold. The USD has been losing support as we approach an almost 2% decline against the Euro but that is having a significant effect on European stocks.
    As Mario Draghi has kept the currency going the negative effects are being seen on equities, and a resurgence of bond spread tightening. It appears the fixed-income market is being the adult in the room seeing the road clear to continue the carry tightening play. That said, US stocks have held in well as earnings plays its supporting role but we should have a clearer picture next week when we hear from the Federal Reserve. Core markets closed with almost 2% declines which for foreign investors is really starting to hurt even providing for the recent euro rally.

    This post was published at Armstrong Economics on Jul 21, 2017.


  • Euro Surges To 2-Year High In “Bipolar” Draghi Reaction; Futures Flat

    The euro’s surge to an almost two-year high put a cap on the global market rally in Friday’s quiet session, with most major exchanges consolidating after a second strong week of gains. The MSCI Asia-Pacific index declined for first time in ten days while the European Stoxx 600 index was fractionally in the green as were US equity futures ahead of earnings reports from General Electric, Honeywell, Schlumberger and others. Oil gained with Brent flirting with $50, zinc rallied along with most base metals. European stocks are little changed, while Asian stocks decline with Tokyo shares falling for first time in three days.
    Also overnight, AUD traders were caught wrongfooted for the second time in one week after the Aussie fell sharply following an unexpectedly dovish speech from RBA Deputy Governor Debelle, who said there’s no significance in the board’s neutral rate discussion, which earlier this week sent the Aussie surging. “No significance should be read into the fact the neutral rate was discussed at this particular meeting,” Debelle said in text of speech. “Most meetings, the board allocates some time to discussing a policy-relevant issue in more detail, and on this occasion it was the neutral rate.” In addition to the drop in AUDUSD, Australian sovereign yields all dropped 5-7 basis points in bull steepening move; three-year yield drops as much as nine basis points to 2.00% – the steepest decline since March on a closing basis. Kiwi rallied to highest since September 2016 on Finance Minister Joyce comments; yen little changed. S&P futures near unchanged. WTI crude holds near $47; Dalian iron ore falls 0.7%.
    But most of the attention was on the EUR in the aftermath of Thursday’s paradoxical Draghi press conference, which led to a “bipolar” market reaction, seen as dovish by rates while hawkish by FX.

    This post was published at Zero Hedge on Jul 21, 2017.


  • Technology that Glitters in Gold: Solar Energy, Bioprinting and Tractor Beams

    Researchers continue to come up with amazing new technologies utilizing gold.
    We generally think of gold as an investment as well as money, but it is increasingly being used in high-tech applications. Gold’s conductivity and malleability make it suitable for a number of futuristic applications, from energy production to healthcare. Researchers are even using the metal in things that sound like they came out of a sci-fi book. In fact, the tech sector accounted for about 6% of gold demand in 2016.
    A team of researchers in Japan has developed a material incorporating gold nanoparticlescapable of harvesting a broader spectrum of sunlight in solar panels. According to AsianScientist, the new formulation makes traditional semiconductor material 60 time more efficient at splitting water to harvest hydrogen atoms. This could revolutionize hydrogen energy production.
    Hydrogen ranks among the cleanest low-carbon fuels. It gives off energy when it combines with oxygen. The byproduct is water. But currently, the process of harvesting hydrogen molecules by splitting H2O takes more energy than the produced hydrogen gives back. AsianScientist explains how gold may make the process more efficient.


    This post was published at Schiffgold on JULY 20, 2017.


  • World Stocks Hit Record High For 10th Consecutive Day In “No-Vol Nirvana”

    The relentless risk levitation continued overnight, as global shares extended their stretch of consecutive record highs on Thursday for a 10th day after a cautious BOJ lifted Asian stocks to a decade high with a dovish announcement that offered no surprises, while pushing back Kuroda’s 2% inflation target to 2020, the 6th consecutive delay. With all eyes on the ECB in just over an hour, US equity futures are in the green, following solid gains around the globe. European stocks extended their biggest gain in a week while Asian equities maintained their rally. Microsoft, Blackstone, Philip Morris and Ebay are among companies reporting earnings. Initial jobless claims data due.
    Traders – so mostly algos – are riding a global risk “high” in stocks as Asia’s and then Europe’s early 0.4 percent gains ensured MSCI’s 47-country All World index was up for a 10th straight session. This is the longest winning streak in global stocks since February 2015 and shows little sign of fatigue even as bond yields edged modestly higher again. The Stoxx Europe 600 Index rose 0.3 percent as of 9:53 a.m. in London. The U. K.’s FTSE 100 Index rose 0.5 percent to near the highest in a month. The MSCI Emerging Market Index fell 0.1 percent, the first retreat in almost two weeks. The VIX index closed below 10 for a record fifth consecutive day. Appropriately, Bloomberg dubbed the move a “no-vol” nirvana, in which stocks and bonds keep rallying as volatility evaporates.

    This post was published at Zero Hedge on Jul 20, 2017.


  • Bank of America Pulls Ripcord on Chinese Conglomerate HNA

    Are the Conglomerates the Black Swan in China? Bank of America suddenly pulled back from doing business with HNA Group, a privately held Chinese conglomerate that has been on the forefront of highly leveraged, opaque Chinese conglomerates out on a mind-boggling debt-funded acquisition binge around the world.
    ‘We simply don’t know what we don’t know, and are not prepared to take the risk,’ Bank of America president for Asia Pacific, Matthew Koder, wrote in an internal email, dated June 28 that was leaked to The New York Times. ‘Given the importance of maintaining rigorous client selection standards, we have decided not to be involved with transactions with the HNA Group at this point in time.’
    So Bank of America is getting scared and won’t do business with HNA. It’s walking away from a lucrative customer that has been generating piles of fees and interest income for the banks. The Times:
    On one side of business, banks have helped HNA buy companies by arranging what is called collateralized financing. That has entailed allowing HNA to borrow money against the shares of the company that it is acquiring.
    Big banks have also received large paydays for advising on HNA’s acquisitions. HNA and its affiliates overseas have paid an estimated $100 million in fees to banks advising on mergers and acquisitions since 2016….

    This post was published at Wolf Street by Wolf Richter ‘ Jul 20, 2017.


  • Asian Metals Market Update: July-19-2017

    The next two days are very crucial for all metals and energies. Gold, silver, copper and nickel are bullish but need to break key resistances for another wave of rise. If gold, silver, copper and nickel do not break key resistances then there can be a sell off. Zinc and lead are testing key short term support. Either zinc and lead hold those key supports or else there will be a sell off. Crude oil needs to break and trade over $49.00 this week to prevent short sellers from getting the upper hand. Natural gas is bullish but once again like bullion, they need to break key resistances for another wave of rise.
    Central bank currency wars are not over yet. Tomorrow’s European central bank meeting will be relevant only with statement directing at altering the current strengthening trend of the euro.
    Bitcoins – current price $2267.00
    Trend is bullish. Bitcoin can rise to $2370 and $2646 as long as it trades over $2224. Sellers will be there below $2224 to $2044 and $1882. Key support till Friday is at $2044.

    This post was published at GoldSeek on 19 July 2017.


  • Spain’s Piraeus Bank Races to Reach ECB Target for Reducing Bad Loans

    The new chief executive officer of Piraeus Bank SA is trying to make up for lost time.
    CEO Christos Megalou must offload 4 billion ($4.6 billion) in bad loans by the end of the year under a restructuring plan worked out with the European Central Bank’s supervisory arm months before he took over at the largest Greek lender.
    “There is a decision of this management to accelerate the implementation of the restructuring plan in order to pay back state aid as soon as possible,” Megalou said in an interview at the bank’s headquarters in Athens. Piraeus has received 2.72 billion in government funding since November 2015, and Greece’s rescue fund owns more than a quarter of the lender.
    Megalou got a late start on the overhaul, joining the bank from Eurobank Ergasias SA only in March after a leadership struggle that makes him the third CEO in less than two years. Two predecessors stepped down in a dispute with Paulson & Co. Inc., one of the lender’s main shareholders.
    Piraeus shares have climbed 45 percent since Megalou took over, giving the bank a market value of about 2.3 billion.

    This post was published at bloomberg


  • Asian Metals Market Update: July-18-2017

    Lack of news resulted in a weaker US dollar and the continued rise in metals and energies. Trump and his never ending controversies implies stalemate among US lawmakers to pass new legislation. Only war legislations have been passed by republicans. Global safe haven demand has been on the rise. The internet is filled with speculation that the Russia-China energy deal will result in an end to the petrodollar. Tensions in the South China Sea and a NATO expansion in eastern Europe will increase in all kinds of trade between Russia and China. We might see a new cold war3 with Russia-China on one side and NATO and its allies on the other. NATO has used trade sanctions first to alienate a nation and if trade sanctions did not work, then use force or create an armed rebellion in that nation. NATO’s tried and tested ways to rule will not work with the Russia-China axis. Russian and Chinese governments have been continuously increasing their gold reserves. One needs to closely watch NATO’s tactics with the Russia-China axis. The Taliban, the Islamic state, the mujahedeen’s, one can call by whatever name are all termites created by NATO for an opposing nation. Philippines great leader Duterte opposed NATO and the Islamic state terror has been unleashed to him. No one is invincible. I believe that the controlling power of NATO will fall over the coming years. Physical gold is still not a bad very long term investment.

    This post was published at GoldSeek on 18 July 2017.


  • The New Silk Road will go through Syria — Pepe Escobar

    Amid the proverbial doom and gloom pervading all things Syria, the slings and arrows of outrageous fortune sometimes yield, well, good fortune.
    Take what happened this past Sunday in Beijing. The China-Arab Exchange Association and the Syrian Embassy organized a Syria Day Expo crammed with hundreds of Chinese specialists in infrastructure investment. It was a sort of mini-gathering of the Asia Infrastructure Investment Bank (AIIB), billed as ‘The First Project Matchmaking Fair for Syria Reconstruction’.
    And there will be serious follow-ups: a Syria Reconstruction Expo; the 59th Damascus International Fair next month, where around 30 Arab and foreign nations will be represented; and the China-Arab States Expo in Yinchuan, Ningxia Hui province, in September.
    Qin Yong, deputy chairman of the China-Arab Exchange Association, announced that Beijing plans to invest $2 billion in an industrial park in Syria for 150 Chinese companies.
    Nothing would make more sense. Before the tragic Syrian proxy war, Syrian merchants were already incredibly active in the small-goods Silk Road between Yiwu and the Levant. The Chinese don’t forget that Syria controlled overland access to both Europe and Africa in ancient Silk Road times when, after the desert crossing via Palmyra, goods reached the Mediterranean on their way to Rome. After the demise of Palmyra, a secondary road followed the Euphrates upstream and then through Aleppo and Antioch.

    This post was published at Asia Times