• Tag Archives Missile
  • Saudi Economy Contracts For First Time In 8 Years, Unveils Record Spending Spree To Boost Growth

    Back when oil was at $100 and above, the Saudi economy was firing on all cylinders, and nobody even dreamed that the crown jewel of Saudi Arabia – Aramaco – would be on the IPO block in just a few years. However, with oil stuck firmly in the $50 range, things for the Saudi economy are going from bad to worse, and today Riyadh – when it wasn’t busy preventing Yemeni ballistic missiles from hitting the royal palace – said its economy contracted for the first time in eight years as a result of austerity measures and the stagnant price of oil, as the Kingdom announced record spending to stimulate growth.
    OPEC’s biggest oil producer said 2017 GDP shrank 0.5% due to a drop in crude production, as part of the 2016 Vienna production cut agreement, but mostly due to lower oil prices. The last time the Saudi economy contracted was in 2009, when GDP fell 2.1% after the global financial crisis sent oil prices crashing. Riyadh also posted a higher-than-expected budget deficit in 2017 and forecast another shortfall next year for the fifth year in a row due to the drop in oil revenues: the finance ministry said it estimates a budget deficit of $52 billion for 2018.
    More surprising was the Saudis announcement of a radically expansionary budget for 2018, projecting the highest spending ever despite low oil prices in a bid to stimulate the sluggish economic, saying it expects the GDP to grow by 2.7%. While we wish Riyadh good luck with that, we now know why confiscating the wealth of ultra wealthy Saudi royals was a key component of the country’s economic plan…

    This post was published at Zero Hedge on Dec 19, 2017.


  • The U.S. Government Creates and Exacerbates the Nuclear Threat

    The whole situation is a ‘Catch 22’ scenario: damned if you do, and damned if you don’t. The problem: we’re American citizens and this is our country. The concurrent problem? It is our country that caused this predicament to occur with North Korea…in a pattern of American imperialism that has been going on actively for about a hundred years. The problem is twofold:
    1. North Korea can strike the U. S. with an EMP (Electromagnetic Pulse) attack and/or nuclear missiles, yet:
    2. The United States government, through the current and prior two administrations has set the stage for this…as either:
    A purposefully-created ‘threat’ to give America a ‘bogeyman’/Emmanuel Goldstein to focus on in a ‘Two-Minutes Hate’ drill…keep the ‘threat level’ alive, or A threat of insignificance grown and nurtured for the express purpose of taking down the country…while reaping profits and power for the oligarchy all along. There is an American oligarchy. The oligarchy is not only made up of business and industrial magnates, but of politicos and religious leaders. The business magnates need the lawmakers and politicos to give them ‘carte blanche’ with tax breaks and incentives such as government contracts. The system needs the general populace (or the ‘proletariat’) to pay taxes and ‘grunt’ out spending on consumer goods and services that keeps the whole thing intact. As in the movie ‘THX-1138,’ there must be periods to pay the utilities, pay for the food, pay taxes on gasoline, taxes on property, taxes on consumer goods, yearly tax increases, and insurances…health, automobile, homeowner…required insurances…

    This post was published at shtfplan on December 4th, 2017.


  • US Futures, World Stocks, Bitcoin All Hit Record Highs

    US equity futures continued their push higher into record territory overnight (ES +0.1%), and the VIX is 1.5% lower and back under 10, after yesterday’s blistering surge in US stocks which jumped 1%, the most since Sept. 11, following Powell’s deregulation promise, ahead of today’s 2nd estimate of U. S. Q3 GDP which is expected to be revised up. U. S. Senate Budget Committee sent the tax bull to the full chamber to vote, and on Wednesday Senators are expected to vote to begin debating the bill. It wasn’t just the S&P: MSCI’s all-country world index was at yet another record peak after all four major Wall Street indexes notched up new highs on Tuesday. Finally, completing the trifecta of records, and the biggest mover of the overnight session by far, was bitcoin which topped $10,000 in a buying frenzy which saw it go from $9,000 to $10,000 in one day, and which is on its way to rising above $11,000 just hours later.
    In macro, the dollar steadies as interbank traders and hedge funds fade its rally this week; today’s major event will be testimony by outgoing Fed chair Janet Yellen after Powell said there is no sign of an overheating economy; the euro has rallied on strong German regional inflation while pound surges on Brexit bill deal news; yields on 10-year gilts climb amid broad bond weakness; stocks rise while commodities trade mixed.
    In Asia, equity markets were mixed for a bulk of the session as the early euphoria from the rally in US somewhat petered out as China woes persisted (recovered in the latter stages of trade). ASX 200 (+0.5%) and Nikkei 225 (+0.5%) traded higher. Korea’s KOSPI was cautious following the missile launch from North Korea, while Shanghai Comp. (+0.1%) and Hang Seng (+-0.2%) initially remained dampened on continued deleveraging and regulatory concerns before paring losses into the latter stages of trade. Notably, China’s PPT emerged again with Chinese stock markets rallied in late trade, with the CSI 300 Index of mainly large-cap stocks paring a drop of as much as 1.3% to close 0.1% lower. The Shanghai Composite Index rose 0.1%, swinging up from a 0.8% loss, with property and materials companies among the biggest gainers on the mainland. The Shanghai Stock Exchange Property Index surged 3.8%, the most since August 2016. The Shenzhen Composite Index was little changed, after a 1.2% decline, while the ChiNext gauge retreated 0.4%, paring a 1.5% loss. In Hong Kong, the Hang Seng Index was little changed as of 3 p.m. local time, while the Hang Seng China Enterprises Index fell 0.3%Stocks in Europe gained, following equities from the U. S. to Asia higher as optimism over U. S. tax reform and euro-area economic growth overshadowed concerns about North Korea’s latest missile launch. The Stoxx 600 gained 0.8%, reaching a one-week high and testing its 50-DMA. Germany’s DAX, France’s CAC, Milan and Madrid were all up between 0.5 and 0.7% and MSCI’s all-country world index was at yet another record peak after all four major Wall Street indexes notched up new highs on Tuesday. ‘It seems to me markets are still trading on the theory that the glass is half full,’ said fund manager Hermes’ chief economist Neil Williams.

    This post was published at Zero Hedge on Nov 29, 2017.


  • Mueller Subpoena Spooks Dollar, Sends European Stocks, US Futures Lower

    Yesterday’s torrid, broad-based rally looked set to continue overnight until early in the Japanese session, when the USD tumbled and dragged down with it the USDJPY, Nikkei, and US futures following a WSJ report that Robert Mueller had issued a subpoena to more than a dozen top Trump administration officials in mid October.
    And as traders sit at their desks on Friday, U. S. index futures point to a lower open as European stocks fall, struggling to follow Asian equities higher as the euro strengthened at the end of a tumultuous week. Chinese stocks dropped while Indian shares and the rupee gain on Moody’s upgrade. The MSCI world equity index was up 0.1% on the day, but was heading for a 0.1% fall on the week. The dollar declined against most major peers, while Treasury yields dropped and oil rose.
    Europe’s Stoxx 600 Index fluctuated before turning lower as much as 0.3% in brisk volumes, dropping towards the 200-DMA, although about 1% above Wednesday’s intraday low; weakness was observed in retail, mining, utilities sectors. In the past two weeks, the basic resources sector index is down 6%, oil & gas down 5.8%, autos down 4.9%, retail down 3.4%; while real estate is the only sector in green, up 0.1%. The Stoxx 600 is on track to record a weekly loss of 1.3%, adding to last week’s sell-off amid sharp rebound in euro, global equity pullback. The Euro climbed for the first time in three days after ECB President Mario Draghi said he was optimistic for wage growth in the region, although stressed the need for patience, speaking in Frankfurt. European bonds were mixed. The pound pared some of its earlier gains after comments from Brexit Secretary David Davis signaling a continued stand-off in negotiations with the European Union.
    In Asia, the Nikkei 225 took its time to catch up to the WSJ report that US Special Counsel Mueller has issued a Subpoena for Russia-related documents from Trump campaign officials, although reports pointing to North Korea conducting ‘aggressive’ work on the construction of a ballistic missile submarine helped the selloff. The Japanese blue-chip index rose as much as 1.8% in early dealing, but the broad-based dollar retreat led to the index unwinding the bulk of its gains; the index finished the session up 0.2% as the yen jumped to the strongest in four-weeks. Australia’s ASX 200 added 0.2% with IT, healthcare and telecoms leading the way, as utilities lagged. Mainland Chinese stocks fell, with the Shanghai Comp down circa 0.5% as the PBoC’s reversel in liquidity injections (overnight net drain of 10bn yuan) did little to boost risk appetite, as Kweichou Moutai (viewed as a bellwether among Chinese blue chips) fell sharply. This left the index facing its biggest weekly loss in 3 months, while the Hang Seng rallied with IT leading the way higher. Indian stocks and the currency advanced after Moody’s Investors Service raised the nation’s credit rating.

    This post was published at Zero Hedge on Nov 17, 2017.


  • SWOT Analysis: Turkish Demand for Gold Near a Four-Year High

    Strengths
    The best performing precious metal for the week was palladium, 0.41 percent. CenterraGold is set to buy Aurico Metals for $1.80 per cash share for a 38-percent purchase price premium on the Toronto Stock Exchange. Centerra currently holds more than $350 million in cash and has now secured a $125 million acquisition facility, according to Bloomberg. Gold prices rose after Saudi Arabia said a recent attempted missile strike at Riyadh’s airport could be an act of war by Iran. Additionally, Turkish investors are continuing to buy gold with demand expected to reach the highest since 2013. According to Google Trends, global searches for ‘buy bitcoin’ have overtaken ‘buy gold’ demonstrating a surge in popularity of the cryptocurrency. However, the BullionVault Gold Investor Index edged slightly higher to 54.6, demonstrating the number of buyers is higher than sellers. Weaknesses
    The worst performing precious metal for the week was platinum, down 0.82 percent. Due to platinum’s primary use in internal combustion engines, the metal could be among the biggest losers from electrical vehicle growth, reports Mining Review. The World Gold Council said it’s a tough quarter for gold as prices weakened in September and October. Global gold demand fell 9 percent in the third quarter as investor buying slowed and regulations in India tightened, reports Eddie van der Walt.

    This post was published at GoldSeek on 13 November 2017.


  • It’s Time To Challenge What You Think You ‘Know’ About The Stock Market

    I know I am not the traditional author you come across on most financial sites. Most others will provide you with traditional notions of the stock market based upon rationalities. So, many authors will suggest that we ‘cannot separate public policy and geopolitics from the markets,’ they will focus on ‘market valuations,’ they will claim that ‘fundamentals do not support this rally,’ and will provide you with many, many other reasons as to why they have continually believed that this rally would never happen.
    Yet, they have been left on the sidelines, scratching their heads for the last year and a half, as the US equity markets have rallied over 45% since February 2016.
    I mean, think about all the reasons they have put before you over the last year and a half regarding the imminent risks facing the stock market, which they have lead you to believe will stop the market in its tracks. I have listed them before, and I think it is worthwhile listing them again:
    Brexit – NOPE
    Frexit – NOPE
    Grexit – NOPE
    Italian referendum – NOPE
    Rise in interest rates – NOPE
    Cessation of QE – NOPE
    Terrorist attacks – NOPE
    Crimea – NOPE
    Trump – NOPE
    Market not trading on fundamentals – NOPE
    Low volatility – NOPE
    Record high margin debt – NOPE
    Hindenburg omens – NOPE
    Syrian missile attack – NOPE
    North Korea – NOPE
    Record hurricane damage in Houston, Florida, and Puerto Rico – NOPE
    Spanish referendum – NOPE
    Las Vegas attack – NOPE
    And, each month, the list continues to grow.

    This post was published at GoldSeek on Monday, 30 October 2017.


  • SWOT Analysis: Macroeconomic Backdrop Remains Positive for Precious Metals, says Metals Focus

    Strengths
    The best performing precious metal for the week was silver up 1.07 percent. Precious metals rallied to mid-day highs on Friday as it was rumored North Korea will test a missile this weekend that is capable of reaching the U. S. West Coast. Gold traders and analysts surveyed by Bloomberg on Thursday were equally split between bulls and bears this week, reports Bloomberg, after saying gold prices will go down three weeks in a row. According to data released by the Perth Mint this week, gold coin and minted bar sales increased to 46,415 ounces in September. This is up from sales of 23,130 ounces in August. In the week ended September 28, inflows into U. S.-listed commodity ETFs totaled $644 million, reports Bloomberg, a 27-percent expansion. Precious-metals funds had $782 million of gains, the article continues, compared with $589 million the week prior. Since Vladimir Putin went on a geopolitical offensive in the Ukraine in 2014, gold had its first annual gain in four years in 2016, writes Bloomberg, and is now on track for another gain in 2017. In addition, the Bank of Russia has more than doubled the pace of gold purchases, accounting for 38 percent of all gold purchased by central banks in the second quarter alone. According to the World Gold Council, this brings the share of bullion in Russia’s international reserves to the highest of Putin’s 17 years in power, the article continues.

    This post was published at GoldSeek on Monday, 9 October 2017.


  • Gold Readying to Rally

    Gold suffered a sharp pullback this past month, spawning bearish sentiment. Futures speculators fled on surging Fed-rate-hike odds and new stock-market record highs. That pounded gold lower despite strong investment demand. This healthy sentiment-rebalancing retreat has left gold ready to rally again. Both its technicals and seasonals are very bullish, and futures speculators’ selling overhang has considerably abated.
    On September 7th, gold powered 1.1% higher to $1348. That was exactly a 1.0-year high, gold’s best level seen since before Trump’s surprise election victory and the resulting extreme Trumphoria stock-market rally. But since gold had surged 4.9% higher in less than two weeks, greed was mounting again. So a couple trading days later, gold started selling off sharply and birthed this past month’s pullback.
    As is usually the case in gold, the pullback spark was multifaceted. When gold had peaked, futures-implied Fed-rate-hike odds for its mid-December meeting were under 32%. But they shot up to 42% on Monday September 11th, when gold’s initial 1.5% drop kicked off this pullback. That day saw a strong relief rally in the stock markets, following a weekend where North-Korea and hurricane-Irma fears failed to materialize.
    North Korea didn’t launch another ballistic missile or detonate another nuclear bomb for its Founder’s Day holiday, the anniversary of Kim Jong-un’s grandfather founding the modern country in 1948. And Irma’s eye veered south over Cuba before slamming Florida, dissipating enough of its energy. Thus Florida was thankfully spared from being razed like some of the Caribbean islands that bore Irma’s full force.

    This post was published at ZEAL LLC on October 6, 2017.


  • It Has Never Been Cheaper To Hedge A Market Crash Using This One Trade

    In mid-August, at the height of the North Korea geopolitical turbulence, and amid uncertainty about the Fed balance sheet unwind, fears of a government shutdown and the US debt ceiling, as well as the fate of Trump tax reform and Obamacare repeal, when the VIX soared following a series of missile launches by Kim Jong Un only to crash right back to near all time lows, we used an analysis from BofA’s derivatives analyst Benjamin Bowler to show “How To Hedge A Near-Term Market Shock: Here Are The Best Trades”
    As we said then “if the events from last week demonstrated something, it is that just when there appears to be virtually no risk, is when the likelihood of a historic surge in volatility is greatest, as many experienced first hand last Thursday. Hence the need to hedge. But what? And using which product?” As Bowler explained “the decision about whether it’s rational to hedge is really a matter of looking at the price of tail insurance embedded into option markets and asking if the probabilities they assign are ‘fair’ or not.” As he further wrote, when it comes to predicting what the next “severe tail event” could look like, “we find that not only are some markets like Gold pricing in a very low probability of Korean risk escalation, there are significant differences across assets in terms of what they imply about potential risks.”
    He then presented the chart below which shows how historical worst 3M drawdowns since 2006 are priced by 3M 25- delta options across asset classes; hedges that are most underpricing their historical drawdowns are at the top and those most overpricing their tails are at the bottom. What the chart shows is that gold call options imply less than a 1 in 100 chance of a severe tail event over the next month, despite being among the most reactive assets to rising Korean tensions last week. With record low Gold vol slaved to record low real rates vol, this represents a loose anchor which likely won’t hold in any significant geopolitical risk escalation. In contrast to gold, Nikkei is at the other end of the spectrum with options assigning over a 5% chance of a near term tail-event.

    This post was published at Zero Hedge on Oct 3, 2017.


  • Technical Scoop – Weekend Update Sep 24

    Weekly Update
    It is the Kim and Donald show. As in Kim Jong Un the North Korean Supreme Leader, and Donald Trump the US President. Donald Trump threatened to ‘totally destroy’ North Korea and made fun of Kim as the ‘Rocket Man.’ Kim responded by calling Donald Trump a ‘mentally deranged U. S. dotard.’ For those not in the know, a dotard is someone who is old, useless, and demented. Also refers to someone who is lethargic and dull. The two have been exchanging colourful threats and insults back and forth now for some time. North Korea followed the latest one up by suggesting they might test a hydrogen bomb over the Pacific. Trump called Kim a ‘madman.’
    If this were the WWE, we suppose this might pass as entertainment. Instead, these are two world leaders threatening to blow the world to smithereens. While the ongoing ‘tit for tat’ threats passed back and forth between North Korea’s testing of missiles into the ocean and sometimes over Japan have at times negatively impacted markets, the markets now seem to be ignoring the two with their ongoing spat. Except it is difficult to ignore Donald Trump’s threats to destroy North Korea and then realizing that North Korea has the capability to do a lot of destruction as well.
    Lost in the shuffle is that China, and to a lesser extent Russia, have said that if the US were to attack North Korea then they would have to get involved and support North Korea. Recall that during the Korean War 1950 – 53 the Americans had pushed deep into North Korea and appeared to be on the cusp of seizing the entire peninsula. China responded by sending in 500,000 troops to assist the North Koreans and they successfully pushed the Americans back to the DMZ zone where the war ended in a stalemate and armistice.
    Also lost in the shuffle was the Fed meeting this past week. The Fed announced that they will be starting to cut its $4.5 trillion balance sheet starting in October. Initially it will be $10 billion a month. Fed chair Janet Yellen said that it will be gradual and predictable. The Fed left interest rates unchanged at 1.25% to 1.50%; however, they expect to raise interest rates one more time this year, probably in December and then three hikes in 2018. The somewhat more hawkish tone sent interest rates slightly higher, steadied the stock markets that merely inched their way higher, caused the US$ to jump higher and gold sold off.

    This post was published at GoldSeek on 24 September 2017.


  • Market Talk- September 22nd, 2017

    The Australian ASX was probably over-sold yesterday and therefore stood as the only core that performed today. Closing up +0.5% was a healthy recovery after yesterdays 1% decline. China’s downgrade put a small dent in confidence for the cash markets which took the Hang Seng down
    -0.8% while the Shanghai closed with just small loss. Geopolitical risks remain present after US President Donal Trump signed to expand measurers to target North Korean trade. the Nikkei although closed lower (-0.25%) was off of its earlier lows as news of the speech-plays increased between the two nations. Having seen gold break the psychological $1300 mark yesterday, today we traded comfortably below that level all day. The Yen has dipped back below 112 again as talks of possible missile launches were circulating ahead of the weekend.

    This post was published at Armstrong Economics on Sep 22, 2017.


  • Global Markets Spooked By North Korea H-Bomb Threat; Focus Turns To Brexit Speech

    S&P futures retreated along with European and Asian shares with tech, and Apple supplier shares leading the drop while safe havens such as gold and the yen rose, as the war of words between U. S. President Donald Trump and Kim Jong Un escalated and North Korea threatened to launch a hydrogen bomb, leading to a prompt return of geopolitical concerns. Trade focus now turns to a planned speech by Theresa May on Brexit (full preview here).
    As reported last night, the key overnight event was the latest threat by North Korea that its counter-measure may mean testing a hydrogen bomb in the Pacific, according to reports in Yonhap citing North Korea’s Foreign Minister. North Korea’s leader Kim said North Korea will consider “corresponding, highest level of hard-line measure in history” against US, while he also stated that President Trump’s UN speech was rude nonsense and demonstrated insanity and inhumanity which confirmed North Korea’s nuclear and missile advances are on right path and will continue to the end. There was more on the geopolitical front with the Iranian President
    informing armed forces that the nation will bolster its missile
    capabilities, according to local TV.
    As a result, treasury yields pulled back and the dollar slid the most in two weeks following North Korea’s threat it could test a hydrogen bomb in the Pacific Ocean. Europe’s Stoxx 600 Index edged lower as a rout in base metals deepened, weighing on mining shares. WTI crude halted its rally above $50 a barrel as OPEC members gathered in Vienna.
    US stock futures pulled back 0.1% though markets were showing growing signs of fatigue over the belligerent U. S.-North Korea rhetoric. ‘North Korea poses such a binary risk that it’s very hard to price, and at the moment investors just have to look through it,’ said Mike Bell, global market strategist at JP Morgan Asset Management. Despite the latest jitters, MSCI’s world equity index remained on track for another weekly gain, holding near its latest record high hit on Wednesday as investors’ enthusiasm for stocks showed few signs of waning.

    This post was published at Zero Hedge on Sep 22, 2017.


  • North Korea – The Crazy Boast Nobody Takes Seriously Anymore

    Gold has now declined with the constant threats from North Korea. The lastest missile was fired over Japan and reached an altitude of about 770km (478 miles), travelling 3,700km past the northernmost island of Hokkaido before landing in the sea, according to South Korea’s military. The UN Security Council convened an emergency meeting, and unanimously condemned the missile launch as ‘highly provocative’but did not add new sanctions which do not seem to do anything anyway.

    This post was published at Armstrong Economics on Sep 16, 2017.


  • Yesterday’s “Watershed” Central Bank Announcement Which Everybody Missed

    In what may have been a watershed moment in monetary policy – which awkwardly was missed by almost everyone as a result of the concurrent launch of the latest North Korean ballistic missile which immediately drowned out all other newsflow – late on Thursday, the Bank of Canada held a conference on inflation targeting and monetary policy titled “Bank of Canada Workshop ‘Monetary Policy Framework Issues: Toward the 2021 Inflation-Target Renewal” in which, in a stunning shift of monetary orthodoxy, BoC Senior Deputy Governor Carolyn A. Wilkins said that Canada was open to changes in the BoC mandate.
    WILKINS: OPEN TO LOOKING AT `SENSIBLE’ ALTERNATIVES TO MANDATE Or in other words, lowering or outright abolishing the central bank’s inflation target, or explicitly targeting financial conditions and asset prices.
    While still early in the process, the BOC may be setting a precedent, one which other DM central banks may have no choice but to follow: If the Bank of Canada is going to look at alternatives to their mandate (with an emphasis on inflation), it – as several trading desks have suggested – could become the first central bank to officially change its mandate to reflect financial conditions that are too loose in the context of the current low r-star lowflation environment.
    In practical terms, this would mean that instead of seeking chronically easier conditions to hit legacy inflation targets around ~2.0% while inflating ever greater asset bubbles, one or more central banks could simply say that 1.5% (or less) is sufficient for CPI and call it a day, in the process soaking up record easy financial conditions and bursting countless asset bubbles. In the context of a “new supply paradigm” in retail (where even FOMC members now blame Amazon for lack of inflation) and energy (same but with OPEC) which appears to be gaining traction within central banks, as well as frustration with distortion in asset markets, It would make much sense for the Fed to lower the inflation target to 1.5%, declare victory, and normalize policy.
    Why? Because as several banks noted after the BoC conference, we know that central banks world-wide are concerned about the size of their balance sheets and associated dysfunctionality in government and other bond markets, and the ever-increasing risks from the ultimate unwind as the QE programs continue to grow in a war against inflation where the victory looks increasingly Pyrrhic. Furthermore, negative rates have caused money markets to become dysfunctional and less efficient, which could be a structural issue “if the temporary was allowed to become permanent.”

    This post was published at Zero Hedge on Sep 15, 2017.


  • Market Talk- September 15th, 2017

    North Korea spooked markets yet again by launching a missile that reported flew over Japan, which came a day after North Korea claimed it would sink Japan. The events were short-livid however and after a brief flight to safety in gold, treasuries and the Yen markets quickly corrected back. The JPY traded into the low 110’s but by US trading had drifted into the 111’s. Gold did have a bid in Asian trading but by the late US session was testing $1320. The recovery had already taken place by the time Asia closed with the Nikkei closing in positive territory (+0.55%) with exporters and financials setting the pace. The Australian ASX closed down -0.8% led by industrials and miners. SENSEX and Hang Seng were both little changed but we saw a positive return for the core Shanghai index closing up +0.55% as the Yuan drifted again.

    This post was published at Armstrong Economics on Sep 15, 2017.


  • SEPT 15/YOUR USUAL FRIDAY WHACKING ON GOLD AND SILVER/GOLD DOWN $4.25 AND SILVER WAS DOWN 13 CENTS/OPEN INTEREST IN SILVER CONTINUES TO RISE COUPLED WITH ANOTHER 845,000 OZ GAIN IN AMOUNT STANDIN…

    GOLD: $1321.40 DOWN $4.25
    Silver: $17.64 DOWN 13 CENT(S)
    Closing access prices:
    Gold $1320.30
    silver: $17.61
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1334.30 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1331.30
    PREMIUM FIRST FIX: $3.00
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1332.13
    NY GOLD PRICE AT THE EXACT SAME TIME: $1329.95
    Premium of Shanghai 2nd fix/NY:$2.18

    This post was published at Harvey Organ Blog on September 15, 2017.


  • Gold Price Falls, Sinks vs UK Pound Despite N.Korea Missile, London Bomb + Spain’s Catalonia Crisis

    Gold price gains of 1.6% from last week were again erased Friday in London, as the outlook for interest-rate hikes trumped new geopolitical tensions led by another weapons test by the pariah state of North Korea.
    Dollar priced-gold retreated to $1325 per ounce – more than $30 below last Friday’s 12-month high – as major government bond prices fell yet again, driving US Treasury bond yields up to their highest since mid-August above 2.20% on 10-year debt.
    After threatening to “sink” Japan and turn the US “into ashes and darkness” on Thursday, Pyongyang this morning fired its furthest-yet missile test over the northern Japanese island of Hokkaido, splashing into the Pacific.
    British police said an ‘improved explosive device’ caused an explosion on a rush-hour London Tube train, with 22 people needing hospital treatment, mostly for burns

    This post was published at FinancialSense on 09/15/2017.


  • Markets Ignore North Korea Missile Launch; Send Pound Soaring, Yen Tumbles

    S&P futures are slightly lower (ES -0.1%) as traders paid little attention to the latest missile test by North Korea on Friday, with shares and other risk assets barely moving, gold lower and focus rapidly returning to when and where interest rates will go up. Most global market are mostly unfazed, and the Korean Kospi actually closed up 0.4%, by the latest geopolitical escalation after a North Korean ballistic missile flew far enough to put the U. S. territory of Guam in range. European stocks edged fractionally lower while Asian shares advanced.
    As reported on Thursday evening, the main overnight event was North Kore’s launch of a missile which passed through Japan’s airspace and over Hokkaido, before landing in the Pacific Ocean. This initially prompted Japan to issue an emergency warning for its residents to seek shelter, while there were also reports that South Korea conducted its own missile firing test as a show of readiness. US military stated North Korean missile did not pose a threat to Guam and that the launch was an intermediate range ballistic missile. South Korean President Moon said will not sit idle on North Korea provocation and that South Korea has power to pulverize should
    North Korea provoke. On Friday morning, Russia also denounced the ‘provocative’ N. Korea missile test, according to the Kremlin. Meanwhile, North Korea stated that it will take stronger actions for its self-defence if the US continues to walk on current course.
    Still, markets are showing clear signs of habituation to missile launches and other provocative actions from North Korea, which has fired more than a dozen missiles this year and tested a nuclear device. Global equities climbed to a record high this week as earnings and confidence in economic growth overshadowed tensions on the Korean Peninsula. The MSCI All Country World Index is poised for its third week of gains in four. Meanwhile, recent economic data has been supporting of bullish positions, with yesterday’s CPI prints suggesting inflation may again be on the rebound. While China data this week softened, the signals from DM financial markets remain optimistic. As such, investors will look to U. S. retail numbers today for more clues about the policy path.

    This post was published at Zero Hedge on Sep 15, 2017.


  • Bill Blain: Have We Reached Missile Fatigue?

    Submitted by Bill Blain of Mint Partners
    Mint – Blain’s Morning Porridge – September 15th 2017
    ‘And if I claim to be a wise man, it surely means that I don’t know..’
    Did I blink and the North Koreans launched another missile? Did I miss it? What’s happened to the headless chicken panic? Missile Fatigue? Provocation or escalation? An expected reaction to new sanctions? Hasn’t even made the front page of the FT. Hmm.. lets see what happens next….
    A couple of key events will stick in my mind from this week. The significant financial ones are all about the weight of money driving financial asset markets higher, and how the effects of money desperately chasing returns are clearly spilling across to the ‘real’ asset sector.
    Its most obvious in the bond markets where new deals are being bid up to unfeasibly tight spreads, yet we’re still seeing massive demand with deals heavily oversubscribed. I must thank Bloomberg for a story this morning that references the Ukrainian Chicken Farm Moment rule of the new issue market.
    But asset price inflation is spreading outside the conventional stock and share markets.

    This post was published at Zero Hedge on Sep 15, 2017.