Pre-Bernank Post

Just a quick post as The Bernank is due before Congress at 10:00 a.m. EDT.

Five things...in no particular order...

First, the Yen is rolling over again. In case you missed it, here's a reprint of a chart I posted as a comment back on Sunday. I went searching for something historical. One, to put the decline into context and, two, to look for a potential bottom level. Well, I think I found a bottom and it looks to still be a ways away. Maybe 85/115?

The open interest levels as we approach FND for the June13 gold are getting more interesting. The latest number is as of Monday. This leaves us with 8 trading days to go (including yesterday, for which we get the numbers today). As of Monday, the total OI in Comex gold had grown to 453,048. Interestingly, this is the highest OI level since March 13th. Additionally, with 8 days to go until FND, the June13 OI still stands at 186,952. Now don't go getting too excited just yet...but...with 8 days to go before FND for the April13, OI stood at 176,921 and with 8 days to go before Feb13 FND, the Feb13 OI was 187,059. Could we get 12,00-15,000 contracts standing on FND? Maybe. Why is this important? As of last evening, the total Comex registered inventory stood at just under 52 mts. Some quick back-of-the-envelope math reveals that this is only enough gold to settle 16,680 contracts. Hmmmm...

And this is fun. The GLD shed another 8.42 tonnes of "inventory" yesterday, dropping the alleged total "inventory" back to 1023.08 metric tonnes. How long before the total tonnage drops back into he triple digits? At this rate, not very. And chew on this little nugget I was sent yesterday: Back in the day, the GLD added about 230 mts in a little over a month. From 1/16/09 to 2/18/09, the "fund" went from 795.5 mts to 1024.09. Again, hmmmm. We are now back to that level. Will we now see 200 tonnes exit the "fund" in rapid succession??? 

Jim Quinn has written another excellent article. Please read this today: http://www.theburningplatform.com/?p=54125

And, finally, please check out the growing list of prizes for the Riff-Raffle. We've added several new items, most prominently, a one ounce Gold Philharmonic coin. This brings the total gold coins to be given away up to two!! The deadline for buying tickets has been extended to Friday so please consider purchasing a few and taking your chances. The current pool is about 450 tickets so you still have a decent shot at winning!

Have a fun day and enjoy the pleasant mutterings of The Bernank!

TF

130 Comments

beardeus's picture

FIRST!

I WANT THAT ONE OZ AMERICAN EAGLE! The months ahead are going to be great for gold and silver prices! We've bounced off the bottom of the long term trend line and the debt ceiling debate is coming to a theater near you!

FUBM!!!!!!!!!!!!!!!!!!!!!!!!

Swineflogger's picture

@nd!

Oops 2nd!

Sandiaman's picture

2nd

Fif amendent day. Liars on cspan 3.

Silver Monkey's picture

BOOM!

Gold strongly through 1400 & silver through 23!  Up Up and AWAY!

bert3798's picture

fifth

jusit fifth

Arcticfoxx's picture

First in Ten!

Nice little upswing!

Watcher's picture

Gold up as Bertank is

Gold up as Bertank is speaking? huh?

RationalMind's picture

2nd Eight Pole

And 8th is a lucky number in Asia!

And may Fortune smiled on all in Turdville.

SilverSurfers's picture

slid

into 2nd base, for a hit, making it a 2 hit string of top 10 turders, and silver is up, for the daily double play, YEAH!!!!!

DeaconBenjamin's picture

Gold edges higher on good retail demand; silver rallies

 

Gold prices advanced further at the domestic bullion market today due to sustained local buying support as well as robust seasonal off-takeGold prices advanced further at the domestic bullion market today due to sustained local buying support as well as robust seasonal off-take

MUMBAI: Gold prices advanced further at the domestic bullion market today due to sustained local buying support as well as robust seasonal off-take.

Silver also rallied on the back of heavy demand from industrial users and jewellery makers amid speculative buyout.

Standard Gold of 99.5 per cent purity rose by Rs 85 to finish at Rs 26,445 per 10 gm from Tuesday's closing level of Rs 26,360.

Pure gold of 99.9 per cent purity firmed up by Rs 80 to settle at Rs 26,585 from Rs 26,505.

Silver ready (.999 fineness) jumped by Rs 800 to end at Rs 44,915 per kg as compared to Rs 44,115 yesterday.

On the global front, precious metals are trading firm on weak dollar amid cautious ahead of congressional testimony on the economy by Federal Reserve Chairman Ben Bernanke later in the day.

Spot gold was bid higher at USD 1,384.91 an ounce in early European trade and spot silver marginally higher at USD 22.59 an ounce.

Silver_investor's picture

Confirmation of what we already knew

And that is that QE isn't going to end.

“A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further,” Bernanke said today in testimony prepared for a hearing at the Joint Economic Committee of Congress in Washington. Monetary policy is providing “significant benefits,” he said."

http://www.bloomberg.com/news/2013-05-22/bernanke-says-premature-fed-tightening-would-endanger-recovery.html

Northern Border's picture

Burning PLatform

Wow, what a great piece from Jim Quinn.  I am 33 years old and right in between Millennial and GenX'ers. 

Interesting dating the Millennial age group.  Women in that age group are never satisfied because they see all these stupid shows like the Bachelor and have this false sense of reality of what a good relationship is all about.  I guess its kinda goes with the article, "false reality" and that most people choose to live in the "Matrix" and ignore reality.  The band keeps playing until the misuc finally stops.  The reality smacks you right in the face!

Senseless rambling done,

NB

PS.  Nice mini spike in the metals this morning.
 

ChewYourOwnFaceOff's picture

Poof

Well, we had a few minutes of pleasant memories from the past anyway.

Zoltan's picture

Release the Bernank

Lately whenever this clown is on tv the metals have gone down.  I miss the days when his stammering and sweating were good for a big spike to the upside.

Looks like the initial spike was a bull trap.  He isn't done yet.  One slip of the tongue could still end the FUTF.

Z

dgstage's picture

LOOKS LIKE

a start of a shooting finger again in the charts. What's up?

OughtImpliesCan's picture

Today's post-Bernank takedown

Today's post-Bernank takedown is far more egregious and blatant than even the middle-of-the night smash downs for a few %.

Gold/silver can't even be allowed to rally when Bernank lets us keep the punch bowl?

What if he announced additional QE--would be see $18 silver?

Completely disgusting and disturbing. We're on the cusp of something crazy.

¤'s picture

More Yen Chart historical comparisons...

As of May 21, 2013....

USD/JPY Chart

And the historical chart comparisons in times of Yen weakness...

Merk-chart1.jpg.aspx?sitename=Newsmax&wi

2013-03-05-historical-comparison_2013030

Marblesonac's picture

Whiplash

straight up, then straight down angry

Silver_investor's picture

Well, that was quick

Even stocks have already petered out. About 20 minutes ago the Dow was up 150 points. Now it's only up 90.

Turd Ferguson's picture

Convenient Coincidence

MODERATOR

The Bernank's "prepared remarks" are released. Gold shoots higher to a PM FIX of $1408.50.

Then The Bernank talks everything back down. Shrewd.

¤'s picture

Today's market reaction (so far) to Bernanke....

pavlovs_dog.jpg

richdiesslin_pavlovs_dog.gif

Wizard's picture

Funny

Now that Silver chart at 10:44 is just flat ass funny.

You can almost feel the multiples of quad core mother boards heating up. when it got away from them for a second while they were watching the Benny Boy talk.

From the Office of Jamie Dimon:

GET YOUR EYES BACK ON THAT SCREEN. You can watch your Benny Porn later

Zoltan's picture

Uh.... Owe

Monetization question.....

The Bernank " we are going to get balances back from a couple trillion to 25 billion".  Really?  That's a lot!!!

Z

CONSTANTINE's picture

Suggestions?

Just realized the new thread, so to repeat...Thanks to all who responded yesterday.

CONSTANTINE

Silver Alert's picture

We're all conditioned

As soon as gold or silver have a little pop - we start drooling.

SRSrocco's picture

KILO GOLD BARS SCARCE IN SINGAPORE

Turd, great post on the Pre-Bernanke.  Something else, first the Bernake states that QE will not taper, now he adds that the FED may taper QE if the economic data supports it.  Of course, that is complete BS, as the FED can't stop QE or the whole system comes crashing down.

Also, as expected, the lower price of gold sparked new record demand in ASIA:

China demand drives Asian gold bar premiums to record highs

http://srsroccoreport.com/china-demand-drives-asian-gold-bar-premiums-to-record-highs/china-demand-drives-asian-gold-bar-premiums-to-record-highs/

billwilson's picture

Unstable

This is very symptomatic of an incredibly unstable system. Wild swings .... something is going to blow.

2nd Dan Fred's picture

RE: Looks Like

Looks like the Bernanke middle finger salute to me ..

zman's picture

!407 down to 1368 in a matter

1407 down to 1368 in a matter minutes, looks like a fair market, not!

wouldyoubelieve...'s picture

yup

The Bernank " we are going to get balances back from a couple trillion to 25 billion".  Really?  That's a lot!!!

just lop off a couple of zero's on every piece of paper, VIOLA!!!, and they said he could never do it pppfffftttt

running a CB is easy peasy

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