Gold Rises To 17-Week High On Signs U.S. Economy Sputters

Gold Rises To 17-Week High On Signs U.S. Economy Sputters Debarati Roy and Nicholas Larkin Bloomberg February 25, 2014 Gold futures climbed to the highest in almost 17 weeks on speculation that a sputtering U.S. economy will boost demand for the metal as an alternative investment.

U.S. consumer confidence fell more than forecast in February from January, an index from the New York-based Conference Board showed today. Home prices rose at a slower pace in the 12 months that ended in December, according to a separate report. Russia’s deputy finance minister said Ukraine faces a “high” chance of defaulting on its sovereign debt. Gold has gained 12 percent this year.

“People are concerned about U.S. economic growth, and that’s why many people have turned bullish” on the metal as a haven, Adam Klopfenstein, a senior market strategist at Archer Financial Services in Chicago, said in a telephone interview. “Gold is also finding some support from the ongoing political turmoil” in Ukraine, he said.

Gold futures for April delivery rose 0.4 percent to settle at $1,342.70 an ounce at 1:48 p.m. on the Comex in New York. Earlier, the price reached $1,343.60, the highest for a most-active contract since Oct. 30.

This month, gold has jumped 8.3 percent, heading for the biggest monthly gain in two years and the first consecutive advance since August. The metal rallied even as the Federal Reserve lowered its bond-buying program by $10 billion a month in both January and February, reducing purchases to $65 billion.

Gold surged 70 percent from December 2008 to June 2011 as the central bank pumped more than $2 trillion into the financial system.

2013 Slump Last year, gold plunged 28 percent, the most since 1981. Some investors lost faith in the metal amid a global equity rally and muted U.S. inflation.

The 14-day relative-strength index for futures topped 70 for the third straight session, a signal that prices may be set to decline. “Even though technicals are strong, there are resistance levels on the near horizon -- the psychological $1,350 being one such barrier, and overbought RSI signals now pushing above the 70 level for the first time since last August suggesting a correction is likely,� Tim Gardiner, a managing director at TD Securities Inc. in New York, said in a report.

Silver futures for May delivery fell 0.4 percent to $22.001 an ounce on the Comex. Yesterday, the price reached $22.215, the highest since Oct. 31.

Palladium futures for June delivery dropped 0.9 percent to $738.55 an ounce on the New York Mercantile Exchange, the biggest drop since Jan. 27.

Platinum futures for April delivery gained 0.1 percent to $1,442.60 an ounce. Earlier, the metal reached $1,445, the highest since Jan. 24.

Gold, Silver Hit 4-Month Highs On Bullish Chart Postures Kitco News February 24, 2014 Gold and silver prices ended the U.S. day session solidly up and scored four-month highs Monday. The markets were boosted by slowly improving technical pictures. Gold saw increasing safe-haven demand amid geopolitical concerns. April gold was last up $14.30 at $1,337.90 an ounce. Spot gold was last quoted up $11.80 at $1,338.50. March Comex silver last traded up $0.283 at $22.065 an ounce.

The Ukrainian president was ousted over the weekend and is now in hiding and wanted for murder.

The situation there remains very fluid. If violence escalates in Ukraine, much more risk aversion would enter the market place. The Ukrainian developments and some civil unrest and violence in Thailand are prompting increased safe-haven demand for gold.

There was a Group of 20 economic and finance ministers meeting in Sydney, Australia, during the weekend. The group laid out a plan for the major industrial economies to continue with their aggressive monetary stimulus plans, while at the same time called for the emerging countries to restructure their economies to contain inflation. The proclamation was mostly ignored by world markets. However, the confab’s declaration does hint that the major central banks of the world are going to be reluctant to cut back too much on their heretofore aggressive monetary policy easing measures. Asian and European stock markets were pressured Monday in part on reports Chinese banks have ratcheted back lending to

commercial property developers. Traders and investors have become more concerned about slowing economic growth in China the past few months. China is the world’s second-largest economy and the world’s largest consumer of raw commodities.

U.S. economic data for released Monday included the Chicago Fed national activity index and the Texas manufacturing outlook survey. Neither report had much of an impact on the market place.

The London P.M. gold fix is $1,334.75 versus the previous P.M. fixing of $1,323.25.

Technically, April gold futures prices closed nearer the session high and hit a fresh four-month high Monday. A seven-week-old uptrend is in place on the daily bar chart. Bulls have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,360.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at $1,350.00 and then at $1,360.00. First support is seen at $1,332.40 and then at $1,325.00. Wyckoff’s Market Rating: 6.5 March silver futures prices closed nearer the session high, scored a bullish “outside day” up on the daily bar chart and hit a fresh four-month high Monday. Silver bulls still have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $23.00 an ounce.

The next downside price breakout objective for the bears is closing prices below solid technical support at $20.67. First resistance is seen at Monday’s high of $22.18 and then at $22.50. Next support is seen at Monday’s low of $21.52 and then at last week’s low of $21.315. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed down 240 points at 326.70 cents Monday. Prices closed nearer the session high and saw more profit taking. Copper bulls and bears are on a level overall near-term technical playing field, amid recent choppy trading. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the February high of 332.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the February low of 317.50 cents. First resistance is seen at Monday’s high of 328.90 cents and then at 330.00 cents.

First support is seen at 325.00 cents and then at 324.00 cents. Wyckoff's Market Rating: 5.0.

The Federal Reserve Is Not “Independent” Or “Apolitical” Washington’s Blog February 24, 2014

The Federal Reserve likes to pretend that it is “independent” and “apolitical”.

The facts are different: • The Fed offered to bail out Mexico, if it would agree to join the North American Free Trade Agreement (NAFTA). Free trade deals have nothing to do with the Fed’s mandate • A study published in the Southern Economic Journal shows that Fed policy tends to create a better economy in the 3 years before presidential elections than right afterwards … to help the incumbent get re-elected • According to Robert D. Auerbach – an economist with the U.S. House of Representatives Financial Services Committee for eleven years, assisting with oversight of the Federal Reserve, and subsequently Professor of Public Affairs at the University of Texas at Austin – the Fed had a hand in Watergate and arming Saddam Hussein. See this and this • The Fed is not independent … it is owned by the big banks • The Fed is corrupt

• The Fed threw money at “several billionaires and tens of multi-millionaires”, including billionaire businessman H. Wayne Huizenga, billionaire Michael Dell of Dell computer, billionaire hedge fund manager John Paulson, billionaire private equity honcho J. Christopher Flowers, and the wife of Morgan Stanley CEO John Mack • The Fed also bailed out wealthy corporations, including hedge funds, McDonald’s and Harley-Davidson • The Fed has been bailing out foreign banks … more than Main Street or the American people.

The foreign banks bailed out by the Fed include Gaddafi’s Libyan bank, the Arab Banking Corp. of Bahrain, and the Banks of Bavaria, Korea and Mexico • The Fed’s main program for dealing with the financial crisis – quantitative easing – benefits the rich and hurt the little guy, as confirmed by former high-level Fed officials, the architect of Japan’s quantitative easing program and several academic economists • The Fed has intentionally discouraged banks from lending to Main Street – in a misguided attempt to curb inflation – which has increased unemployment and stalled out the economy

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