Gold, Silver Rise On Concerns Of Further Currency Debasement and QE4

There is speculation in the markets that the US Federal Reserve will purchase more debt to help the US economy which is boosting gold bullion.
While speaking at Pace University in Manhattan , Federal Reserve Bank of New York President William C. Dudley said, “I will be assessing the employment and inflation outlook in order to determine whether we should continue Treasury purchases into 2013.” Dudley also stated, “The Fed will promote maximum employment and price stability to the greatest extent our tools permit, and we will stay the course.”

Fed officials are considering whether to step up record accommodation to counteract the scheduled expiration next month of Operation Twist, a program swapping short-term Treasuries with longer-term debt. A “number” of Fed officials said at the last policy meeting that they may need to expand its monthly purchases of bonds, according to the minutes of the FOMC ’s Oct. 23-24 meeting.
Gold has returned 10% this year and silver has returned 23% year to date, driven by quantitative easing.

 

From Goldcore:

Today’s AM fix was USD 1,728.25, EUR 1,329.53, and GBP 1,077.87 per ounce.
Yesterday’s AM fix was USD 1,724.50, EUR 1,327.56, and GBP 1,076.47 per ounce.

Silver is trading at $34.32/oz, €26.53/oz and £21.50/oz. Platinum is trading at $1,621.00/oz, palladium at $683.30/oz and rhodium at $1,050/oz.

Gold rose $6.40 or 0.37% in New York yesterday and closed at $1,725.60/oz. Silver fell to a low of  $33.51 in Asia, and ran up to $34.36 in New York and finished with a gain of 1.51%.


Cross Currency Table – (Bloomberg)

Gold inched up on Friday, but prices saw their largest weekly drop since the beginning of November as the unease of the talks on the US fiscal cliff continue to weigh on sentiment.

Republican Speaker of the House, John Boehner said yesterday that the fiscal cliff talks made little progress, dampening the flame of optimism that he lit on Wednesday.

“Based on where we stand today I would say two things. First, despite the claims that the president supports a balanced approach, the Democrats have yet to get serious about real spending cuts,” Boehner said after the private session with Geithner. “And secondly, no substantive progress has been made in the talks between the White House and the House over the last two weeks,” Boehner commented.

US Treasury Secretary, Timothy Geithner, is Obama’s chief negotiator in talks to avert the US fiscal cliff.


XAU/USD 5 Min – (Bloomberg)

Spot palladium is on course for its 5th weekly gain and a monthly rise of over 14%.   Supply shortages contribute to the gain.  Norilsk Nickel, the world’s largest producer of nickel and palladium, said they expect the palladium market to remain in a deficit in the next few years largely due to a near depletion of Russian state supplies.


XAU/EUR 5 Min – (Bloomberg)

Spot silver is on course for a monthly gain of over 6%.

The Shanghai Gold Exchange said it will begin a trial run of OTC gold trading on the China Foreign Exchange Trading System on December 3rd, allowing interbank trading in large volumes.

The US CFTC (Commodities & Futures Trading Commission) commitment of traders is posted at 1930 GMT.

There is speculation in the markets that the US Federal Reserve will purchase more debt to help the US economy which is boosting gold bullion.

While speaking at Pace University in Manhattan , Federal Reserve Bank of New York President William C. Dudley said, “I will be assessing the employment and inflation outlook in order to determine whether we should continue Treasury purchases into 2013.” Dudley also stated, “The Fed will promote maximum employment and price stability to the greatest extent our tools permit, and we will stay the course.”

Fed officials are considering whether to step up record accommodation to counteract the scheduled expiration next month of Operation Twist, a program swapping short-term Treasuries with longer-term debt. A “number” of Fed officials said at the last policy meeting that they may need to expand its monthly purchases of bonds, according to the minutes of the FOMC ’s Oct. 23-24 meeting.

Gold has returned 10% this year and silver has returned 23% year to date, driven by quantitative easing.

 


XAU/GBP,  5 Min – (Bloomberg)

NEWS
Gold ticks up; headed for biggest weekly drop in 4 weeks – Reuters

Gold futures retreat after sharp gains – Market Watch

Gold Set for Weekly Loss as U.S. Lawmakers Wrangle Over Budget – Bloomberg

Doubts on Dutch Gold Reserves – NIS News

India gold demand seen rebounding in 2013: WGC – Reuters

Turkey sees no clash with U.S. over Iran “gold for gas” – Euronews

COMMENTARY
Citigroup sentences to Europe to faster economic death – The Telegraph

Turkey-Iran: Gold For Gas US Scrutiny
– The Financial Times

Visualizing The World’s Gold Mines And Deposits
– Zero Hedge

Comments

  1. I have no way to proove it but it just seems to me that silver is what is holding up the other PMs in all these smack downs we have seen this year!

    • @RocketsRedGlare

      Agreed, but we can’t loose sight of the fact that these are paper-boys duking it out with rock-em-sock-em robots. Terriffically amusing, as it all is, the real serious stuff is down on the street where coin and bullion is being fought over in ‘premiums’. As those contests begin to get ‘bruising’ and ‘draw blood’, THEN, we can ‘lay down our bets’ for white knuckle excitement.

  2. The QE matter is large and important in the overall theme of our economy.  Since Geithner and Benanke are completely committed to the course, aided and abetted by Obama, we will see, at a minimum, $1 trillion prints.  Obama will also be very unlikely to compromise on the fiscal cliff, which is in my opinion, the most important fiscal matter facing the country in many years, maybe even decades. Obama will be on a 3 week vacation from Dec 16 to Jan 7 while this matter is being debated.  I think that the president’s mind is set.  Fresh from his election victory and not looking to compromise, he is more likely to lash out at his enemies, and yes, he does think of the Republicans as enemies, by letting the Fiscal Cliff run its course.  He has no ideas, new or otherwise, except to see further tax increases and further damage to the 50% of the people who opposed him.  That means you and me.
    By allowing the fiscal cliff to remain in place he  gains 3 things that will work best for his ultimate plans.  He wins on all three of his greatest desires
    1. Taxes go up for every American, rich or poor
    2. Defense budget is cut, making us more vulnerable and less able to negotiate.
    3. When things go badly, and they will, he can blame the opposition and make it stick since his constituency backed him to do accomplish this end result.
    He is completely committed to damaging this country with no more thought to the end result than a child with a pack of matches and a can of gas.  He does not really know the end result of his and his czars actions except that they hurt America and its people, a country and group that have no real affiliation with him or his ambitions.

    • @AGXIIK … “Taxes go up for every American, rich or poor”

      That’s not really true. Only unsuspecting ’residents’ of the federal district jurisdictions, who unknowingly conduct their affairs under presumption of liability to those taxes and ‘volunteer’ to act as Tax Collectors, are Lawfully obligated to ‘return’ them.

      I just opened a FB page called ‘American Dream’ to get into the details of the subject. If you’re interested to learn and diacuss all the aspects, please come join.   

        

    • A $4 million dollar vacation at taxpayer expense. At a time when we have massive budget deficits. The military budget is out of control, it can be cut without hurting us. Some programs that the military doesn’t even want but senate is pushing them as pet projects.

    • I’m wondering about what would happen if we aren’t capable of paying the taxes anymore as we focus more to use 100% of our dollars on foods, clothing, bills, etc? No way I’m going to sell my precious metals to pay up the taxes! If I ever go to prison because I wasn’t able to pay the taxes due to inflation, then at least I’ll get some free foods and shelter over there! :)

  3. Maybe if we gave Bronco a green card he would lighten up on us..
    I’m for it.

  4. Please stop calling it qe! Currency Debasement people, don’t let the bankers create a vocabulary for you to use. CD4! not QE! The term quantitative easing doesn’t make any sense, why are you speaking banker gibberish? Stop it! Sorry, pet peeve.

  5. I was trying to think of some term even the basest of sheeple can understand, how about this: money raping!

  6. How can you debase something that is worth about 6 cents?

  7. Wow! We are already talking about QE4 when QE3 just recently happened. It looks like things are moving faster than before. If quantitative easing moved gold by 10% and silver by 23%, then that means silver will never go back to 30$ per ounce or lower and gold will never go back to 1650$ per ounce or lower.

Speak Your Mind