Gold Surges $50 Or 3.3% – Brinks Sees 55% Decline In Gold Inventories In Week

Today’s AM fix was USD 1,280.75, EUR 981.87 and GBP 848.91 per ounce.
Yesterday’s AM  fix was USD 1,252.25, EUR 977.02 and GBP 840.78 per ounce.

Gold climbed $2.70 or 0.22% yesterday and closed at $1,251.10/oz. Silver fell $0.07 or 0.36% and closed at $19.15 prior to some sparks that were seen in after hours and Asian trading. 


Gold Prices/Fixes/Rates/Vols – (Bloomberg)

Gold surged 3.3% or nearly $50 from $1,248/oz to $1,298/oz after Federal Reserve Chairman Ben Bernanke admitted that the U.S. economy continues to need a highly accommodative monetary policy and will do for the “foreseeable future”.

Gold climbed for a fourth day to the highest level in more than two weeks due to safe haven buying after Bernanke also admitted, what many more realistic analysts have been saying for some time, that the 7.6% unemployment rate probably "overstates the health of the labor market."


Comex Gold Inventories (Millions of Ounces)

Gold’s record 23% fall last quarter was attributed to Bernanke’s “jawboning” when he again claimed that the Fed would reduce its $85 billion of monthly asset purchases this year. Minutes of that meeting released yesterday showed many officials wanted to see more signs that employment is improving before backing a trim to bond buying.

This is  gold bullish and suggests that gold’s recent fall is overdone.


Comex Gold Inventory Data/Brinks Inc Total

The Fed, in conjunction with the BOJ, ECB and BoE is set to  continue pursuing extremely accommodative monetary policies which should see fiat currencies continue to fall in value versus gold. 


Comex Gold Inventory Data/JP Morgan Total

Record high gold borrowing costs due to significant physical demand, especially in China and much of Asia, continues.

Although Bernanke’s comments are the ostensible reason for gold’s price rise, a more fundamental reason, and less reported upon, is likely to be the continuing decline of COMEX gold inventories. 

Bullion buyers internationally and particularly in Asia are taking delivery of physical gold which is draining inventories on the COMEX. COMEX inventories fell another 1.5% yesterday (see table).

Brinks has seen a massive decline in its gold inventories in recent days. The huge decline in Brinks inventories is being seen soon after a similar decline in JP Morgan’s gold inventories.

Brinks inventories have fallen from 570,000 ounces on July 3rd to 257,000 ounces today which is a drop of 313,000 ounces – a drop of 55% in just one week.

The entire inventories on the COMEX, of bullion banks and depositories is now just 7.096 million ounces and is worth just $9.1 billion at today’s prices. This is a very small amount vis á vis the amount of money in stocks, bonds, cash and other assets today throughout the world and in Asia where much of the gold seems to be flowing East.

This has all the hallmarks of a ‘run’ on the COMEX and needs to be monitored. A default on the COMEX would see the price of physical gold rise substantially and potentially in a very short period of time. 


Cross Currency Table – (Bloomberg)

Has Gold’s ‘Bubble’ Burst Or Is This A Golden Opportunity? 
Our recent well-attended webinar has been uploaded to YouTube.

Topics covered in the webinar included:

* Outlook For Gold And Silver This Year and Coming Years

* Learning From 1970s Bull Market & 1975/76 Price Collapse

* Safest Way To Own Gold And Silver

* Paper and Digital Gold

* Knowing When To Reduce Allocations Or Sell

* Safest Way To Own Gold And Silver

* Extremely Negative Sentiment Towards Gold

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS
Gold Nears $1,300AfterFed’s Bernanke Backs Sustained Stimulus – Bloomberg

Gold futures rally 3%after Bernanke backs stimulus – Investing

Gold climbs to 2-1/2weekhigh on Fed stimulus hopes – Reuters

Bullion demand fromChinawill fuel gold price rebound – The Australian

COMMENTARY
Europe’sDebt-CrisisStrategy Is Near Collapse
– The Telegraph

CME Reports ThatBrinksHas a Seventy Percent Decline in Registered Gold Bullion Supply – Jesse’s Café Américain

Telegraphing theTurnaround in Gold – Casey Research

How Low Will The Pound Go? – Money Week

Mark O'Byrne

Also on news-goldcore-com

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

The Inflation Tide is Turning!

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are: Money Supplies have risen dramatically Commodity Prices are rising again Reduced Globalization as ‘Made at Home’ policies are proliferating Pent up […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

The Inflation Tide is Turning!

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are: Money Supplies have risen dramatically Commodity Prices are rising again Reduced Globalization as ‘Made at Home’ policies are proliferating Pent up […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE