{"id":37484,"date":"2013-04-11T10:30:49","date_gmt":"2013-04-11T14:30:49","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37484"},"modified":"2013-04-11T10:30:49","modified_gmt":"2013-04-11T14:30:49","slug":"gold-silver-take-a-beating-from-goldman-sachs-the-fed-cyprus-sales-plan-now-denied","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/11\/gold-silver-take-a-beating-from-goldman-sachs-the-fed-cyprus-sales-plan-now-denied\/","title":{"rendered":"Gold & Silver “Take a Beating” from Goldman Sachs, the Fed & Cyprus Sales Plan \u2013 Now Denied"},"content":{"rendered":"

London Gold Market Report<\/strong>
\nfrom Adrian Ash<\/strong>
\nBullionVault<\/strong><\/a>
\nThurs 11 Apr, 08:20 EST<\/strong><\/p>\n

The WHOLESALE PRICE of gold rallied from 1-week lows against the Dollar on
\nThursday morning, but continued to fall for UK and Euro investors, hitting 4- and 2-month
\nlows respectively.<\/p>\n

World stock markets continued to rise, while major government bonds slipped, commodities
\nheld flat, and silver bullion rose back above $27.50 per ounce.<\/p>\n

“Precious metals took a beating [on Wednesday],” notes Germany’s Commerzbank, with
\ngold “leading the way” by falling more than1.5%.<\/p>\n

“Goldman Sachs came out with a top trade recommendation to sell Comex gold [futures],
\nwhich started the move down.”<\/p>\n

That tip was followed by minutes from the US Federal Reserve’s latest policy meeting,
\nreleased at 9am after being mistakenly shared with lobbyists and lawmakers.<\/p>\n

A leaked paper from the European Commission then included a proposal for Cyprus to sell
\n10 of its 13.9 tonnes in central-bank gold as part of the bankrupt island’s \u20ac10 billion bail-out
\nprogram.<\/p>\n

“The Cypriot authorities have committed to sell the excess amount of gold reserves owned by
\nthe Republic,” says the ‘template’ detailed in the paper.<\/p>\n

“This is estimated to generate one-off revenues to the state of \u20ac0.4bn via an extraordinary
\npay-out of central bank profits.”<\/p>\n

Under the currency union’s political treaty, however, central banks must be
\nindependent “from Community institutions or bodies, from any government of a Member
\nState or…any other body.”<\/p>\n

That independence specifically includes not financing state deficits through the sale of
\ncentral-bank assets \u2013 a point stressed by the European Central Bank when it rebuked a 2009
\nattempt by Silvio Berlusconi’s administration to levy a 6% tax on the Banca d’Italia’s 2,450-
\ntonne gold bullion reserves.<\/p>\n

“No such thing has been discussed or is in the process of being discussed,” said Aliki
\nStylianou, a spokesperson at the Central Bank of Cyprus, to CNBC today.<\/p>\n

“There are so many rumors flying about and this is just one of them.”<\/p>\n

“Ten tonnes of gold [is] not enough to significantly affect the market,” adds Swiss refinery
\nand finance group MKS in a note.<\/p>\n

But even so, the leaked plan “has been a psychological blow to the market,” counters James
\nSteel at London market-maker HSBC, quoted by the Financial Times.<\/p>\n

“The gold price has taken a pretty hard tumble.”<\/p>\n

Yesterday’s minutes from the US Fed’s mid-March policy meeting \u2013 where both interest rates
\nand bond-buying levels were left unchanged \u2013 meantime revealed that “a few participants”
\nwould like to end its asset-purchase scheme “relatively soon.”<\/p>\n

Other attendees \u2013 again un-named, with their voting status left unclear \u2013 felt that “economic
\nconditions would likely justify continuing the [quantitative easing] program at its current
\npace at least until late in the year.”<\/p>\n

“Many participants [however] emphasized” the need to see strong, sustainable improvement
\nin the US labor market before the current $85 billion-per-month is reduced.<\/p>\n

Today in Tokyo, new Bank of Japan governor Haruhiko Kuroda \u2013 who last week launched
\n$1.4 trillion in QE over the next 2 years \u2013 tempered his previous comments by saying the
\ncentral bank will treat its 2% annual inflation target “flexibly”.<\/p>\n

“If there is any serious asset market bubble appearing or approaching, of course we will take
\nnecessary measures,” Kuroda told the FT in an interview.<\/p>\n

The People’s Bank of China meanwhile said this morning that its foreign exchange reserves
\ngrew 3.8% in the first 3 months of this year \u2013 the fastest pace in nearly 2 years \u2013 to hit fresh
\nall-time records above $3.4 trillion.<\/p>\n

“[We’re seeing] an even greater demand for gold by China during price pullbacks, aside from
\nthe general uptrend,” says a note from Mike Dragosits at TD Securities in Toronto,
\ncommenting on Wednesday’s new gold import figures.<\/p>\n

“China’s demand for gold has not wavered in the face of all the negativity in the market
\nsurrounding the end to the gold bull run.”<\/p>\n

Adrian Ash<\/strong><\/span><\/a>
\nBullionVault<\/strong><\/span><\/a><\/p>\n

Gold price chart, no delay | Buy gold online<\/strong><\/span><\/a><\/p>\n

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market
\nfor private investors online, where you can buy gold and silver in Zurich, Switzerland for just
\n0.5% commission.<\/p>\n

(c) BullionVault 2013<\/p>\n

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best
\nplace for your money, and any decision you make will put your money at risk. Information
\nor data included here may have already been overtaken by events \u2013 and must be verified
\nelsewhere \u2013 should you choose to act on it.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

London Gold Market Report from Adrian Ash BullionVault Thurs 11 Apr, 08:20 EST The WHOLESALE PRICE of gold rallied from 1-week lows against the Dollar on Thursday morning, but continued to fall for UK and Euro investors, hitting 4- and 2-month lows respectively. World stock markets continued to rise, while major government bonds slipped, commodities … <\/p>\n

Continue reading “Gold & Silver “Take a Beating” from Goldman Sachs, the Fed & Cyprus Sales Plan \u2013 Now Denied”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37484","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=37484"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37484\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=37484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=37484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=37484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}