Gold and Silver Market Morning: May 10 2017 – Gold still consolidating on support!

Gold Today – New York closed at $1,219.80 yesterday after closing at$1,227.20 yesterday. London opened at $1,222.00 today.
Overall the dollar was stronger against global currencies, early today. Before London’s opening:
– The $: was stronger at $1.0872 after yesterday’s $1.0904: 1.
– The Dollar index was slightly stronger at 99.43 after yesterday’s99.34.
– The Yen was weaker at 113.95 after yesterday’s 113.74:$1.
– The Yuan was stronger at 6.9040 after yesterday’s 6.9064: $1.
– The Pound Sterling was stronger at $1.2969 after yesterday’s $1.2926: 1.
Yuan Gold Fix
The Shanghai Gold Exchange was trading at 275.60 towards the close today. This translates into $1,236.62. New York closed at a $16.82discount to Shanghai’s close yesterday. London opened at a discount of$14.62 to Shanghai’s close today.
Today is one of those days when we can see just where pricing power lies. New York has tried to pull prices back well below support, hitting $1,216 at one point. Shanghai took prices higher today in their consolidation process, but London moved in line with New York last night. How New York and London perform today becomes critical. If Shanghai falls, then pricing power sits in London and New York, today.
LBMA price setting: The LBMA gold price was set today at$1,222.95 from yesterday’s $1,225.15.
The gold price in the euro was set at 1,125.02 after yesterday’s1,124.09.

This post was published at GoldSeek on 10 May 2017.

Commerce Secretary Throws Bucket of Cold Water on Economic Growth Projections

US Commerce Secretary Wilbur Ross poured a bucket of cold water on promises of robust economic growth in the first year of the Trump administration.

Trump set a goal of 3% GDP growth for 2017, but Ross said ‘it’s certainly not achievable this year, ‘ during an interview with Reuters. The commerce secretary blamed slow implementation of Trump’s economic agenda for putting a damper on growth projections.
The Congress has been slow-walking everything. We don’t even have half the people in place.’
Many analysts believed Trump’s economic program of tax cuts, healthcare reform, reducing regulation, and America-first trade policies would spark economic growth. The stock market responded with a post-election boom some have dubbed ‘the Trump effect.’ But things haven’t progressed quite as planned. More than 100 days in, and the administration hasn’t had much success putting its policies in place. Nevertheless, Ross insisted the administration could spark growth in the year after all of Trump’s business-friendly policies are implemented.

This post was published at Schiffgold on MAY 10, 2017.

Trump Slams Democrats For Defending Comey: “They’ll Be Thanking Me!”

The Democrats have said some of the worst things about James Comey, including the fact that he should be fired, but now they play so sad!
— Donald J. Trump (@realDonaldTrump) May 10, 2017

It was a return to the old, familiar routine on Wednesday morning, when President Trump went after Democrats on Twitter for their reaction to his decision to fire FBI Director James Comey.
“The Democrats have said some of the worst things about James Comey, including the fact that he should be fired, but now they play so sad!” the president tweeted Wednesday.

This post was published at Zero Hedge on May 10, 2017.

Something Big Changed In The U.S. Gold Market In 2017

Most Americans didn’t realize it, but something BIG changed in the U. S. gold market in the beginning of 2017. While precious metals sentiment and buying in the U. S. has dropped off considerably in the first quarter of 2017, the East continues to acquire gold, HAND OVER FIST.
How much gold? Well, let’s just say…. U. S. gold exports have nearly doubled during JAN-FEB 2017 versus the same period last year.
Total U. S. gold exports JAN-FEB 2017 surged to 101 metric tons (mt), compared to 56.5 mt last year. This is quite interesting because total U. S. gold mine supply plus gold imports for JAN-FEB 2017 only equaled 80 mt. Thus, the U. S. suffered a 21 mt gold supply deficit in the first two months of the year. Which means, someone had to liquidate an additional 21 mt of gold from their vaults to export to the East….. where they still understand the vital role of gold as REAL MONEY.

This post was published at SRSrocco Report on MAY 10, 2017.

Chinese Stocks Slide Again: One Trader Thinks It’s All About The Financial Deleveraging

After two days of disappointing macro data out of China, with trade numbers missing expectations on Tuesday following by another drop and miss in producer prices overnight, the “great decoupling” between China stocks and both the S&P500 as well as the rest of the world continued, and the Shanghai Composite dropped another 0.9% to 3,052 to the lowest level since mid-October. Gauges of industrial, utilities and materials shares fell the most on CSI 300 Index, while the ChiNext small-cap gauge droped 0.9%, while the divergence with offshore Chinese stocks continued: MSCI China +0.8%, set for highest close since July 2015. In short: it’s Chinese stocks against the rest of the world.
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Furthermore, it’s not just stocks as China’s bond sell-off continued amid deleveraging concerns, leading China to sell five-year government debt at the highest cost since 2014.
To be sure, there have been various explanations for this ongoing decoupling, many of which were noted here previously, and most have to do with either China’s shadow bank crackdown, the ongoing monetary tightening by the PBOC, the recent plunge in commodity prices leading to accelerating margin calls and asset liquidations, and in general concerns about China’s record debt load.

This post was published at Zero Hedge on May 10, 2017.

Global Markets Thrown For A Loop After Comey’s Shocking Sacking

Just as the reflation trade appeared to be finding its latest wind, after a modest rise in oil prices over the past 24 hours (now that Andurand has finished liquidating his book) and a halt to the commodity rout in China, Trump threw the markets for a loop again with his firing of James Comey, which has implications on everything from Trump’s tax policy (most likely delayed due to more infighting between, and within, the two parties) to US geopolitics (will Trump launch another attack, this time against N. Korea to deflect from this scandal?)
‘There is no doubt that Trump is dominating proceedings this morning after the sacking of Comey. This is a political story rather than a market story, but yet again it creates uncertainty in the market, which leaves everything the president does with a cloud floating over it,” said James Hughes, chief markets analyst at GKFX in London, quoted by Reuters.
“The Comey news is being treated as a risk-off event, and the headlines were sparking the dollar’s move down,” said Bart Wakabayashi, branch manager for State Street Bank and Trust in Tokyo.
As a result it has been a chaotic, mostly “risk-off” overnight session, in which S&P futures, some Asian markets and European stocks (which yesterday hit the highest level since August 2015) declined on the latest spike in political uncertainty after Trump’s abrupt firing of Comey. The USD weakened vs G-10 peers; in Japan JGBs sold off across the curve after BOJ’s Kuroda acknowledged that QE purchases have become smaller. The USD/JPY fell in response to the latest belligerent North Korean rhetoric in which a North Korean ambassador told SkyNews his country will conduct a 6th nuclear test, the only question is when. In the other Korea, the Kospi opened higher, rising to new records after Moon Jae-in won the South Korean presidential vote, but then erased early gains as the won weakens.

This post was published at Zero Hedge on May 10, 2017.

Chinese Producer Prices Miss, Slide For Second Month As Burst Commodity Bubble Spills Over

With the entire world’s focused on the last remaining reflationary dynamo in the world, China, today’s inflation data out of Beijing, fabricated as it may be, was closely watched. After all, just one month ago, UBS declared China‘s reflationary phase over, and a dark, deflationary era of negative credit impulse-driven deflation would soon be unleashed on the world. Again.

This post was published at Zero Hedge on May 9, 2017.

(No) Fear! VIX Lowest Since 1993, Macro Risk Lowest Since 2012 (Did The Fed Kill Off Vol?)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.
Volatility and risk seems to have vanished from financial markets. The VIX, the S&P500 index of volatility, is now at its lowest point since 1993.
And the Citi Macro Index is down to a low level last seen in 2012 and late 2009.

This post was published at Wall Street Examiner on May 9, 2017.

Visualizing The Global Black Market For Oil

The value of the crude oil production alone is worth a staggering $1.7 trillion each year. Add downstream fuels and other services to that, and oil is a money-making machine. As VisualCapitalist’s Jeff Desjardins notes, both companies and governments take advantage of this resource wealth. More of the world’s largest companies work in the oil patch than any other industry. At the same, entire government regimes are kept intact thanks to oil revenues.
The only problem when an industry becomes this lucrative? Eventually, everybody wants a piece of the pie – and they’ll do anything to get their share.
THE BLACK MARKET IN FUEL THEFT Today’s infographic comes from Eurocontrol Technics Group, and it highlights the global problem of fuel theft.

This post was published at Zero Hedge on May 10, 2017.

Ted Butler Quote of the Day 05-10-17

The data indicate that JP Morgan has been working overtime to take care of business and it has been remarkably successful in doing so. Just three weeks ago the silver market structure was extremely bearish, the most bearish it had been in history. Today, JP Morgan is in its best position ever for a silver price moonshot. Perhaps the crooks at JP Morgan and the CME Group can manipulate silver prices even lower to reduce JPM’s paper short position even more, but it seems like we are at the point of picking up nickels and dimes in front of a steamroller in waiting out the eventual silver price explosion.

And make no mistake, this mostly concerns silver, with gold and other commodities playing a secondary role. I only detect JP Morgan’s massive presence in silver. If the bank holds significant physical long or paper short positions in other commodities, it doesn’t show up in the data I monitor – at least, nowhere near as clearly as it shows up in silver.

At some point — and hopefully very soon, JP Morgan will likely morph from being the great silver price suppressor to the great silver price booster. Remarkably, JPM has already accomplished the hard part – coming to buy and own 500 million net silver oz (600 million physical oz minus 100 million oz of paper shorts) over the past six years. All it has to do to cause the price to rocket higher and benefit itself more than anyone else is, quite literally, nothing. JP Morgan not adding to paper short positions on the next rally will allow silver prices to float and soar higher without limitation. And even though JPMorgan has always added to silver short positions in the past, considering just how advantageous a big rally would be to the bank at this time, the only sane bet is that JPM will let silver fly

A small excerpt from Ted Butler’s subscription letter on 06 May 2017.

More precious metals news & information available at
Ed Steer’s Gold & Silver Digest.
 

‘The Great Narrowing’ of the S&P 500

‘The new 1%’ gained $260Bn since March 1, the 99% lost $260Bn. Over the past 10 weeks – so since March 1, 2017 – five stocks in the S&P 500 index have gained a total of $260 billion in market value, the infamous FAANG stocks: Facebook, Apple, Amazon, Netflix, and Google (now Alphabet).
By any measure, $260 billion is a massive surge in valuation for just five stocks, or 1% of the S&P 500, in just 10 weeks.
And the rest of the S&P 500? On March 1, the index closed at 2,394. Today it closed at 2,397. In those 10 weeks, it went absolutely nowhere. Which means this: the remaining 495 stocks in the index lost as much in total market capitalization as the FAANG stocks gained.

This post was published at Wolf Street on May 9, 2017.

Is Canada The Next Hot Money Victim?

One of the interesting things about the Great Recession was how Canada’s financial system sailed through it largely unscathed. Its banks were regulated wisely and behaved prudently, its citizens avoided the extreme stupidity of their credit-addicted neighbors to the south, and its government refrained from doubling its debt every eight years. It certainly looked like Canadians were smarter – or at least more emotionally mature – than we were.
But instead of Americans learning from Canada, Canadians appear to have concluded that we had it right after all. In the decade since the global financial system’s last near-death experience, Canadians have started to behave like turbo-charged Americans. A few recent examples:
Canadians Are Buying A Record Number Of New Cars, With A Record Amount Of Financing (Better Dwelling) – Sales of new motor vehicles across Canada rose to an all-time record for February.

This post was published at DollarCollapse on MAY 9, 2017.

The Dream of the Central Banker

The art world and artists have in the main not addressed one of the most important issues of our time – central banks foisting debt on the people and nations of the world and thereby controlling them.
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An artist who has the knowledge and courage to look at and address the world of money, the dangers of monetary policies today and currency debasement on a scale that the world has never seen before is an Irish artist called Conor Walton.

This post was published at Gold Core on May 10, 2017.

Odds Of Trump Still Being President In 2019 Tumble

From a recent high of 75%, the last few hours – since FBI Director Comey was fired – have seen the odds of Donald Trump still being President at the end of 2018 have tumbled…
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On relatively high volume, PredictIt’s site shows heavy selling (with some trades crossing at 60%).
Interestingly, President Trump had just reached his highest odds of staying… and this drop is merely a one-month low…

This post was published at Zero Hedge on May 9, 2017.

Stockman On The Coming Fiscal Bloodbath: “Sell Stocks, Sell Bonds, Buy Gold”

David Stockman joined Greg Hunter of USA Watchdog to discuss what he views as a fiscal bloodbath and the biggest bond market bubble to ever hit the global economy.
To begin the discussion, the Washington insider was asked about the cash on hand in the United States federal budget and the fiscal conditions that Donald Trump faced where he unloaded, ‘I think it is a total calamity. They capitulated entirely.’
While speaking on what cuts Trump proposed Stockman pressed, ‘He wants to cut $18 billion in order to ‘balance it out’ from domestic programs like the the National Institute of Health (NIH), Public Broadcasting Service (PBS) and a lot of things in between… and that’s just a down payment for the big reduction proposed for the full fiscal year that starts in October. That proposal is looking for $54 billion for defense and other domestic priorities, met with $54 billion of cuts on the domestic side… the problem is, Trump went to the Hill and they got totally fleeced. They ended up with most of the increases they wanted because that is the way Washington works. More money for the defense and border pork barrel.’

This post was published at Zero Hedge on May 9, 2017.

Warren Buffett Just Issued This Warning About the Economics Behind U.S. Healthcare

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
Famed investor Warren Buffett shocked investors at his annual shareholder meeting in Omaha, Neb., when he issued a dire warning about America’s economy.
‘The tax system is not crippling our business around the world,’ Buffett claimed on May 6, with regard to the U. S. corporate tax rate being the highest among the world’s industrialized nations at 35%.
Instead, Buffett blamed another threat much more ominous than corporate taxes looming over American businesses: healthcare costs.
According to Buffett, chief executives would be smart to shift their attention away from tax cuts and towards healthcare costs, which are swelling and swallowing profits.
Here’s why…

This post was published at Wall Street Examiner on May 9, 2017.

Will Gold or Silver Pay the Higher Interest Rate?

The Wrong Approach This question is no longer moot. As the world moves inexorably towards the use of metallic money, interest on gold and silver will return with it. This raises an important question.
Which interest rate will be higher?
It’s instructive to explore a wrong, but popular, view. I call it the purchasing power paradigm. In this view, the value of money – its purchasing power -is 1/P (where P is the price level). Inflation is the rate of decline of purchasing power.

This post was published at Acting-Man on May 10, 2017.