FED’S YELLEN CHICKENS OUT OF INCREASE IN INTEREST RATES/GOLD SKYROCKETS ON FED’S LACK OF ACCOUNTABILITY/GOLD ADVANCES TO $1263.00 IN THE ACCESS MARKET/SILVER TO $15.62/JAPAN SIGNALS IT MAY NOT CANCEL NIRP AS THEY DO ANOTHER U TURN/DEUTSCHE BANK REPORTS THAT IT WILL LOSE MONEY THROUGHOUT 2016 AND THUS IT’S STOCK PLUMMETS ON THE DAY/MORE TROUBLE IN BRAZIL AS ITS CENTRAL BANK HEAD HONCHO MAY LEAVE ON THE APPOINTMENT OF LULA/INSURANCE GIANT MUNICH RE PURCHASES GOLD AND STATES IT IS BECAUSE OF NEGATIVE INTEREST RATES/PEABODY, LARGEST USA COAL MINER MISSES INTEREST RATE PAYMENT AND MAY DECLARE BANKRUPTCY/CHINA AND KAZAKHSTAN WISH TO INCREASE CO OPERATION IN DEVELOPING A PHYSICAL MARKET FOR GOLD
Gold: $1,229.30 down $1.10 (comex closing time)
Silver 15.21 down 5 cents
In the access market 5:15 pm
In the words of Bill Murphy of GATA today on remarking on gold’s huge advance in the access market: “Houston, we have a problem”
The Fed’s credibility has now been shot as Yellen backs away from increasing rates due to global disturbances.
At the gold comex today, we had a poor delivery day, registering 0 notices for nil ounces and for silver we had 230 notices for 1,150,000 oz for the active March delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 211.33 tonnes for a loss of 92 tonnes over that period.
In silver, the open interest fell by 2055 contracts down to 166,180 with silver down by 9 cents yesterday. In ounces, the OI is still represented by .831 billion oz or 119% of annual global silver production (ex Russia ex China).
In silver we had 230 notices served upon for 1,150,000 oz.
In gold, the total comex gold OI fell by 6,624 contracts to 493,086 contracts as the price of gold was DOWN $14.00 with yesterday’s trading.(at comex closing). The fall in OI in gold should relieve a little pressure on our bankers.
We had another big change in gold inventory at the GLD, a deposit of 2.09 tonnes/ thus the inventory rests tonight at 792.23 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold, after they deplete the GLD will be the FRBNY and the comex. In silver,/we had no changes in inventory/ and thus the Inventory rests at 325.868 million oz
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver fell by 2055 contracts down to 166,180 as the price of silver was down 26 cents with yesterday’s trading. The total OI for gold fell by 6,624 contracts to 493,086 contracts as gold was down $14.00 in price from yesterday’s level.
2 a) Gold trading overnight, Goldcore
3. ASIAN AFFAIRS
i) TUESDAY night/ WEDNESDAY morning: Shanghai closed UP BY 6.11 POINTS OR 0.21% , / Hang Sang closed DOWN by 31.07 points or 0.15% . The Nikkei closed DOWN 142.62 or 0.83%. Australia’s all ordinaires was UP 0.15%. Chinese yuan (ONSHORE) closed DOWN at 6.5200. Oil ROSE to 37.12 dollars per barrel for WTI and 39.38 for Brent. Stocks in Europe so far ALL MIXED . Offshore yuan trades 6.52118 yuan to the dollar vs 6.5200 for onshore yuan/china’s industrial production collapsed along with retail sales. jAPAN RE SIGNALS that they may continue with nirp a little longer which sends the USA/Yen spiraling northbound/markets in Japan tumble (see below). Yesterday China signals that they are going to tax financial transactions
ii report on Japan and CHINA
Kuroda again does a U Turn: we are now pack to a potential increase in NIRP: down goes the Yen! China’s decrease in the offshore yuan ends the short squeeze so Mr Kyle Bass can continue with his shorting!
( zero hedge)
iii) The Chinese consumer has been hit hard by the layoffs and the deteriorating conditions inside China:
i) Oil jumps on a supposed new meeting
( zero hedge)
ii) Big Cushing, Oklahoma build but smaller gasoline draw causes crude to be confused;
( zero hedge)
iii)Oil will not stage a rally until Cushing Ok refining storage levels decline:
More trouble in Brazil, as the chief of the Central Bank of Brazil is ready to resign amid the appointment of LULA as chief of staff in Rousseff’s government;
(courtesy zero hedge)
i A. Reuters discusses the huge story of Munich Re purchasing huge quantities of gold.
iB )Why is this not shocking to us; JPMorgan corners the LME aluminum market
ii)Peabody, the largest USA coal producer has just skipped an interest payment and now warns of bankruptcy as it’s stock crashes
iii) Ambrose Evans Pritchard reports on the high USA core inflation as it rears its ugly head. He states that the global cycle is near the danger zone(Ambrose Evans Pritchard/UK Telegraph)
iv)Craig Hemke describes the huge net short position by the criminal commercials as well as the total high OI. He knows that continue raids are forthcoming:
v) Moriarty states that Jim Richards is minimizing gold manipulation. By stating the obvious he is actually emphasizing it:(courtesy Moriarty/321.gold.com/Chris
vi)Another biggy!! Kazakhstan and China will now join forces in developing a physical gold for gold;
USA MARKETS WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i) Housing starts beat expectations but permits slowing down. This suggests further rent increases are coming in the months ahead:
( zero hedge)
ii) This will not be liked by the Fed as core CPI surges by 2.3% year over year, the biggest jump since Oct 2008.
iii)The decline in the USA manufacturing sector continues as industrial production
b The decision:
(zero hedge/the Fed)
c)The Fed mouthpiece Sir Jon Hilsenrath hath spoken:
( Jon Hilsenrath/Wall Street Journal)
d)Immediate resultant action:
The total gold comex open interest fell to 493,086 for a loss of 6,624 contracts as the price of gold was down $14.00 in price with respect to yesterday’s raid and thus the reason for our bankers relentless attacks on our two precious metals today. For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest: 1) total gold comex collapse in OI as we enter an active delivery month or for that matter an inactive month, and 2) a continual drop in the amount of gold standing in an active month. Today, only the first scenario was in order as we actually gained in actual ounces of gold standing. The front March contract month saw its OI rise by 5 contracts up to 135.We had 1 notice filed upon yesterday, and as such we gained 6 contracts or an additional 600 oz will stand for delivery. After March, the active delivery month of April saw it’s OI fall by 8,841 contracts down to 244,484. This high level is scaring our crooked bankers. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 125,540 which is awful. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was good at 211,875 contracts. The comex is not in backwardation .
March contract month:
INITIAL standings for MARCH
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil||16,139.300 oz(Manfra,Scotia)
|Deposits to the Dealer Inventory in oz||nil|
|Deposits to the Customer Inventory, in oz||nil|
|No of oz served (contracts) today||0 contract
|No of oz to be served (notices)||135 contracts(13,500 oz)|
|Total monthly oz gold served (contracts) so far this month||585 contracts (58,500 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||127,007.9 oz|
we had 0 adjustments
MARCH INITIAL standings/
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory||119,851.08 oz (Scotia,CNT/Delaware)|
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||3121.69 oz(Delaware)|
|No of oz served today (contracts)||230 contracts 1,150,000 oz|
|No of oz to be served (notices)||716 contract (3,580,000 oz)|
|Total monthly oz silver served (contracts)||725 contracts (3,625,000 oz)|
|Total accumulative withdrawal of silver from the Dealers inventory this month||nil oz|
|Total accumulative withdrawal of silver from the Customer inventory this month||9,174,004.2 oz|
Today, we had 0 deposits into the dealer account:
total dealer deposit; nil oz
we had 0 dealer withdrawals:
total dealer withdrawals: nil
we had 1 customer deposits
i) Into Delaware: 3121.69 oz
total customer deposits: 321.69 oz
We had 3 customer withdrawal:
i) Out of Scotia: 90,942.54 oz
ii) Out of Delaware: 2919.65 oz
iii) Out of CNT; 25,998.89 oz
total customer withdrawals: 119,851.08 oz
we had 1 adjustments
i) Out of CNT:
616,449.580 oz was adjusted out of the customer account and this landed into the dealer account of CNT
And now the Gold inventory at the GLD:
March 16.2016:/we had a deposit of 2.09 tonnes of gold into the GLD/Inventory rests at 792.23 tonnes
March 15/ no changes in gold inventory at the GLD/Inventory rests at 790.14 tonnes
March 14/a huge change in gold inventory at the GLD, a withdrawal of 8.63 tonnes/Inventory rests at 790.14 tonnes
March 11 /despite the high volatility of gold last night and today, somehow the GLD added 5.95 tonnes of gold without disturbing anyone./inventory rests this weekend at 798.77 tonnes
March 10/a deposit of 2.08 tonnes of gold into the GLD/Inventory rests at 702.82 tonnes
March 9/a withdrawal of 2.38 tonnes of gold from the GLD/Inventory rests at 790.74
March 8/no changes in inventory at the GLD/Inventory rests at 793.12 tonnes
MARCH 7/a tiny loss of .21 tonnes of gold probably to pay for fees/inventory 793.12 tonnes
MARCH 4/another mammoth sized deposit of 7.13 tonnes of gold into GLD/Inventory rests at 793.33 tonnes. This is no doubt a “a paper addition” and not physical
MAR 3/another good sized deposit of 2.37 tonnes of gold into the GLD/Inventory rests at 788.57 tonnes
MAR 2/another mammoth paper gold addition of 8.93 tonnes of gold into the GLD/Inventory rests at 786.20 tonnes.
March 1/a mammoth 14.87 tonnes of gold deposit into the GLD/inventory rests at 770.27 tonnes
March 16.2016: inventory rests at 792.23 tonnes