Weekly Gold & Silver Market Recap - 11/22/2013

YELLEN'S COMMENTS SUPPORT GOLD

Last week's statement from U.S. Federal Reserve Chairman candidate Janet Yellen, in which she shared that the current fiscal policy would remain until healthier economic conditions were seen, provided brief support for Precious Metals that was quickly weakened by profit taking. ''People were feeling very bearish before Yellen's statement,'' National Securities Corporation chief market strategist Donald Selkin said. ''Her comments were dovish and can be seen as a postponement to tapering, which is definitely helpful for Gold.  But, the main reasons why Gold has fallen are intact. Inflation is low, and equity markets continue to march ahead.''

GOLD LOWERS AS PROFIT TAKING CONTINUES

Gold moved lower during Monday trading as investors took advantage of profit taking and equities received a boost, causing a dip in demand for Precious Metals. " Until such time as financial investors ? be they short- or longer-term-oriented ? return to the market, Gold and Silver will find it hard to make any significant gains,'' Eugen Weinberg, head of commodities research at Commerzbank, said. Further talk from the U.S. Federal Reserve regarding tapering quantitative easing at next month?s meeting could make a difference as to how Precious Metals will perform toward the end of the year. Gold?s main support has somewhat disappeared since the announcement that the Fed may possibly cut back or end the $85 billion monthly bond-buying program once the economy stabilizes.

PRECIOUS METALS FLAT AS INVESTORS LOOK FOR DIRECTION

Gold and Silver prices continued to trade mostly flat throughout Tuesday. While investors waited for the minutes from the Federal Reserve's October meeting to be released for direction, European Central Bank Vice President Vitor Constancio  mentioned quantitative easing as a possibility to help pull the eurozone out of stagnation. James West, portfolio advisor to the Midas Letter Opportunity Fund, said, ''The statement was made as only a 'possibility' and so I don't think that in and of itself is going to affect investor sentiment toward Precious Metals in the immediate sense, but I do think such a statement nonetheless provides Gold investors who are long a level of comfort that their investments will ultimately be successful.''

U.S. GOVERNMENT OFFICIALS TO DISCUSS DEBT CRISIS ONCE AGAIN

With the end of the year rapidly approaching, old news is becoming current again. In October, U.S. lawmakers avoided a debt default at the 11th hour and settled continued negotiations over raising the debt ceiling. However, over the next few months lawmakers will again be forced to have the debt ceiling conversation. The Organization for Economic Cooperation and Development (OECD) stated, ''An outright default would have extremely severe effects. It would be likely to create large confusion and uncertainty in financial markets given the importance of U.S. government bond rates in pricing financial instruments worldwide and the widespread use of U.S. government bonds as collateral in many financial operations, and trigger a systemic flight to liquidity that could prove as catastrophic and costly as that in the day following the Lehman failure in 2008.''

METALS, STOCKS FALL AFTER FED MINUTES

Precious Metals prices fell Wednesday after the afternoon release of the minutes from the Federal Reserve's October meeting. Stock futures also plummeted after the release, as the S& P 500's losing streak extended to the longest in eight weeks. The minutes showed that Fed officials expect economic data to improve to the point where they could begin to taper the quantitative easing (QE) program, possibly by next month. ''The battle lines are clearly drawn, with some at the Fed now itching to scale back QE unless the incoming data are awful the cumulative rise in payrolls since QE3 started is enough for these members. We think [Janet] Yellen is not persuaded of this view but it will be hard for the doves if November payrolls are strong,'' Pantheon Macroeconomics chief economist Ian Shepherdson said.

However, some disagree with that assessment. ''The market is still expecting a taper next year, not in December of this year,'' Wells Fargo Private Bank chief investment officer Dean Junkans said. Peter Boockvar, chief market analyst at the Lindsey Group, added, ''Unless we see big upside in the November payroll report, Yellen will take the reins in January with current policy on track and she'll decide where to go from there.?

FED WANTS TO KEEP MARKET GUESSING

The Gold price fell Thursday, still reeling from news that the Federal Reserve could begin to taper quantitative easing as soon as next month. Societe Generale analyst Robin Bhar said of the recent price movement, ''This highlights the fact that the market believed there will be no tapering this year and now the Fed says that is not really discounted.  The central banks want to keep the market guessing and that uncertainty weighs on the Gold price.'' Also weighing on the Gold price is the U.S. dollar, which is at its highest mark in nearly a week. Historically, Gold has a mostly negative correlation to the dollar.

GOLD EXPECTED TO MAKE A COMEBACK

MarketWatch's Jeff Reeves assembled a list of  four reasons that Gold is poised for a comeback. First, he says that global physical demand for the metal is strong, according to the World Gold Council. He also points to the fact that outflows from Gold exchange-traded funds are slowing. Hedge fund managers are also behind the metal, but this last point is perhaps the most interesting. With talk of tapering the current loose monetary policy, Reeves wrote, ''Keep in mind that Gold rallied from a low of under $1,200 [per ounce] at the end of June to $1,400 [per ounce] in August on the expectation that tighter monetary policy was on the way. A move like that may be likely again for Gold prices in early 2014.''

PRICES STEADY AS THE WEEK COMES TO AN END

Precious Metals remained flat during trading Friday  after having a difficult time finding support in the later part of the week. Further positive U.S. economic data, along with uncertainty about when the Fed will cut back its asset purchasing program, has put pressure on Gold.  The Australia and New Zealand Banking Group, ANZ, said that if Gold falls below the key support of $1,240 per ounce, it is possible it would keep moving toward $1,180 per ounce.

At 3:47 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,246.10, Up $0.00.
• Silver, $19.94, Down $0.06.

Morning Gold & Silver Market Report  - 11/22/2013

• Gold, $1,246.80, Up $0.70.
• Silver, $20.00, Up $0.01.

Gold Gets a Reprieve before 6/28 Close

Daily

Chart Prepared by Jamie Saettele, CMT

  --- Gold's drop through 1260 negated the bullish bias. The drop below the Oct low shifts focus to the 6/28 close at 1234.

--- The trendline that extends off of Aug and Sep highs may serve as support in the coming days/weeks. The steep line that originates from the 10/30 high is possible resistance along with 1251 - 1261.

Trading Strategy: I am flat but the new trend defining level is 1278.80 (below is bearish).

LEVELS: 1180 1208 1234 | 1251 1261 1269

Closing Gold & Silver Market Report  -- 11/21/2013

• Gold, $1,244.00, Down $31.10.
• Silver, $20.01, Down $0.11.

Morning Gold & Silver Market Report -- 11/21/2013

FED WANTS TO KEEP MARKET GUESSING

The Gold price fell Thursday, still reeling from news that the Federal Reserve could begin to taper quantitative easing as soon as next month. Societe Generale analyst Robin Bhar  said of the recent price movement, ''This highlights the fact that the market believed there will be no tapering this year and now the Fed says that is not really discounted. The central banks want to keep the market guessing and that uncertainty weighs on the Gold price.'' Also weighing on the Gold price is the U.S. dollar, which is at its highest mark in nearly a week. Historically, Gold has a mostly negative correlation to the dollar.

MarketWatch's Jeff Reeves assembled a list of  four reasons that Gold is poised for a comeback. First, he says that global physical demand for the metal is strong, according to the World Gold Council. He also points to the fact that outflows from Gold exchange-traded funds are slowing. Hedge fund managers are also behind the metal, but this last point is perhaps the most interesting. With talk of tapering the current loose monetary policy, Reeves wrote, ''Keep in mind that Gold rallied from a low of under $1,200 [per ounce] at the end of June to $1,400 [per ounce] in August on the expectation that tighter monetary policy was on the way. A move like that may be likely again for Gold prices in early 2014.''

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,242.90, Down $17.60.
• Silver, $19.85, Down $0.27.

$1 million gold stash found in airplane toilet

Closing Gold & Silver Market Report  -- 11/20/2013

• Gold, $1,244.90, Down $31.10.
• Silver, $19.91, Down $0.49.

Morning Gold & Silver Market Report -- 11/20/2013

FED KEEPS FISCAL POLICY INTACT U.S. CONSUMER PRICES FALL

U.S. Federal Reserve Chairman Ben Bernanke spoke at the National Economists Club's annual dinner Tuesday to discuss the future of the Fed's $85 billion monthly bond buying program.   ''The target for the federal funds rate is likely to remain near zero for a considerable time after the asset purchases end, perhaps well after'' the jobless rate falls below the Fed's target of 6.5 percent, Bernanke said.  The unemployment rate is a substantial factor in determining when tapering will begin as it reflects the overall stability of the U.S. economy.

U.S. consumer prices were released this morning and reflected a 0.1 percent drop in October due to a decline in energy prices.  The Labor Department said this was the first consumer price decline since April.    The U.S. economy is struggling to get out of its slow growth pattern,  but with lower consumer demand, that is proving difficult.  The Federal Reserve has continued their asset purchasing as low inflation has been the key factor to the highly discussed stimulus program. 

At 10:08 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,260.20, Down $15.80.
• Silver, $20.23, Down $0.17.

Jim Rogers: " Own Gold" Because " One Day, Markets Will Stop Playing This Game"

Closing Gold & Silver Market Report ? 11/19/2013

• Gold, $1,277.30, Up $2.50.
• Silver, $20.42, Even.

Morning Gold & Silver Market Report -- 11/19/2013

GOLD, SILVER FLAT AHEAD OF FED MINUTES

Gold and Silver prices are mostly flat in early-morning trading. Minutes from the Federal Reserve's October meeting  are scheduled to be released Wednesday, and investors and analysts will be combing the details for any clues as to the timing of quantitative easing tapering. Peter Fertig, owner of Quantitative Commodity Research, said, ''The latest comments from Fed officials raised again concerns that the (Federal Open Market Committee) might not taper in December but this uncertainty is likely to remain in the market until the decision is finally made..... I don't expect the minutes to bring any new information which would alter the picture but you never know how the market reacts.''

U.S. stock futures are pointing toward a flat open for Wall Street. Famed investor Carl Icahn, owner of Icahn Enterprises LP,  said he was ''very cautious'' on equities. He also mentioned that a ''big drop'' could be in store, and these words are making many investors nervous. Stan Shamu, market strategist at IG Group, said, ''While Icahn?s comments were mainly blamed for [yesterday's] selloff, at such elevated levels, investors are always looking for excuses to take some profits off the table.''

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,276.20, Up $1.40.
• Silver, $20.41, Down $0.01.

Closing Gold & Silver Market Report  - 11/18/2013

• Gold, $1,277.70, Down $12.20.
• Silver, $20.45, Down $0.34.

Morning Gold & Silver Market Report - 11/18/2013

GOLD DOWN ON PROFIT-TAKING STOCKS EXPECTED TO CONTINUE RALLY

The  Gold price is down this morning as traders cashed in on three sessions of gains.  However, expectations that incoming Federal Reserve Chair Janet Yellen will perpetuate liberal monetary policy halted any major pressure on the yellow metal.   ''Gold is really stuck in limbo at the moment,'' Saxo Bank's head of commodity research Ole Hansen said. ''The Yellen yell last week failed to lift Gold through resistance and with stocks continuing to be the favorite place to be, alternatives such as Gold are receiving little attention.''

As metals prices take a breather,  U.S. stocks appear ready to realize another session of gains  as Yellen's comments continue to drive equities.  Concerning the Fed's quantitative easing program and its impact on markets, Craig Erlam, market analyst at Alpari U.K., said, ''There's no doubt that it has been a huge contributor to the rally this year and Janet Yellen's testimony last week suggested it's going to carry on, in its current form. ? As long as the Fed continues to pump $85 billion per month into the financial system, traders will be bullish on stocks.''

At 9:16 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,285.30, Down $4.10.
• Silver, $20.72, Down $0.07.

Morning Gold & Silver Market Report - 11/15/2013

PROFIT TAKING PUTS DENT IN GOLD'S REBOUND

Profit taking has Gold and Silver prices down slightly in early morning trading. U.S. Federal Reserve Chair nominee Janet Yellen's testimony to the U.S. Senate yesterday saw dovish monetary policy comments lift Precious Metals prices. MKS Capital senior trader Alex Thorndike said, ''I think a $1,270-$1,300 [per ounce] range should hold into next week.  The market will now look to next week's (Fed meeting) minutes  for any further information on a tapering timeline, which of course will influence Gold and Silver.''

U.S. stock futures rose Friday morning ahead of economic data. Deutsche Bank analysts  also commented on Yellen's testimony, saying, ''We got a glimpse of the future of the Fed under Yellen's stewardship -- and the verdict from markets is that we should expect policy continuity when Yellen officially takes the reins next year.'' Accommodative monetary policy has helped both Precious Metals and stock market prices in the past, so a continuation is positive for both markets.

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,288.90, Up $0.60.
• Silver, $20.79, Up $0.01.

Closing Gold & Silver Market Report ? 11/14/2013

• Gold, $1,288.80, Up $18.40.
• Silver, $20.81, Up $0.31.