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Bargain spotted in gold closedend funds
If you have to own gold, Central Fund of Canada (CEF +0.6%) is the way to go, writes Morningstar's Mike Taggart, who notes it's trading at an 8.3% discount to NAV more than two standard deviations outside the norm.
Gold got a "shortterm reprieve" by the postponement of the taper, says Citi's Ed Morse and Heath Jansen, but it's just a reprieve. The unemployment rate continues to grind downwards to the Fed's target level, and Bernanke made clear there's no preset timetable for the taper, and a "major policy change" could come at any meeting. The two see gold falling back below $1,250 by year's end. Way ahead of the analyst team, gold has already given back its postFed pop, and is off another 0.8% today to $1,321 per ounce. ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.
Dude, where my gold ETF rally?
While headlines show a near 5% rally for gold and almost 8% for silver, those ETFS which track the metals (GLD +0.4%) and (SLV +0.2%) have barely budged. ETF investors aren't missing out. Instead, it's the metals' official close of trade time 1:30 ET meaning yesterday's massive postFOMC (2 ET) rally will be reflected in today's price change. Both ETFs where trading doesn't end until 4 ET soared yesterday. Meanwhile, the nontaper has previously bullish Michael Dudas remaining so, but Commerzbank is more cautious: "Rising equity markets could mean that investors prefer to put their money into equities rather than gold," says the team, which would like to see a trend of inflows into ETFS before getting too excited (money exited again yesterday). The miners are giving back some of yesterday's big gains. Up 9% on Wednesday, the GDX is off 2.4% today. The tripleleveraged bull ETF (NUGT 7.5%) gives back some of yesterday's 27% gain, while the tripleleveraged bear ETF (DUST +7.8%) recoups some of yesterday's 27% swoon. PM ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, air jordan uk DZZ, GLL, DGZ, UGLD, DGLD, GLDI, SLV, SIVR, AGQ, DBS, USV, ZSL, USLV, DSLV, SLVO. Gold miner ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING. Silver miners: SIL, SLVP, SILJ.
Druckenmiller: "Gotta love gold" after Fed nonaction
"You've gotta love hold here," Stan Druckenmiller tells the team on Squawk Box. The Fed lost its chance for a "freebie" when it decided not to taper yesterday, as the markets had already braced themselves and priced it in.
Stocks, bonds, gold gain after FOMC; dollar slides
S 500 (SPY +0.6%), DJIA (DIA +0.4%), and Nasdaq 100 (QQQ +0.6%) after the Fed surprises by not announcing any taper of its asset purchase program. The 10year Treasury note rises nearly a full point, the yield down to 2.78%. TLT +0.4%. Precious metals soar, Gold (GLD +2.7%), Silver (SLV +2.9%), and the dollar (UUP 1%) heads south. Money line from the FOMC statement: "The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases." Also noted is the "federal fiscal retrenchment." Precious metals ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI. Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX. Dollar ETFs: UUPT, UDN. UDNT. Index ETFs: IVV, SPY, VOO, RWL, SFLA, SSO, UPRO, SDS, SPXU, SH, EPS, RSP, BXUB, BXUC, BXDB, DIA, DDM, UDOW, DXD, SDOW, DOG, QQQ, QQEW, TQQQ, QID, SQQQ, PSQ, QLD, QQQE.
Confusion behind big drop in Indian gold imports
Ahead of the festival season, India hiked gold import duties another 1015% this week, raising jewelry import taxes alongside to give domestic jewelers a break. It's the latest in a series of hikes on gold taxes as the country tries to narrow its trade gap by stemming demand for the metal. Much has been made of the plummeting in gold imports in August, but this may have been due to a new central bank policy ordering 20% of imported gold be set aside for export, with the remainder going into jewelry. Don't beat yourself up for not being able to figure out what this means. Industry experts can't decipher the rule either, and imports/exports have both frozen in the meantime.
Gold equities lure investors after April bullion rout
Despite the pain or perhaps because of it gold equities are luring investors back, posting their biggest twomonth net inflow in two years during July and August. It could partly owe to a recovering gold price (at least until this week), but also because miners have taken hefty writedowns, slimmed down projects and put others on hold to save cash after years of chasing volume at all costs. Investors have been looking to get exposure to gold through the actual miners themselves after the gold price crash in April, an analyst says. Gold miner ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING. Meanwhile, gold ETFs are still seeing outflows: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.
Gold market looks down, sees air
Gold has priced in the taper but that doesn't mean it won't overshoot on the downside, says Goldman commodity research chief Jeff Currie, explaining his $1,050 shortterm target.
Gold set to break air jordan uk under $1,300
The action is again in precious metals where gold looks like it may break underneath $1,300 again. The metal's off 1.5% to $1,311 per ounce. Silver's down 2.1% to $21.68. Today's excuse for selling looks to be he rumored imminent nomination of Larry Summers to be Fed chief. Summers brings with him what is assumed to be a more hawkish attitude than his competitor for the job, Janet Yellen, and he's made clear his ambivalence about the efficacy of the QE program.
Indian demand for gold evaporates
In retrospect, it's looking like gold's big summer rally was the flip side of the tumbling Indian rupee (as well as some other EM countries). Trouble is, the rupee has weakened so much vs. gold that it's choked off Indian demand gold imports slumped 95% in August to just 2.5 tons vs. 47.5 tons in July, according to Mineweb. That may just be a start as the Indian government is looking to impose another round of duties on imports of the yellow metal. "The country (is) no longer prepared to be a dumping ground for the world surplus gold at the cost of their more positive yielding assets," writes Izabella Kaminska in the FT. With India shut down and ETF interest continuing to slip, will traditional importers like China and the MIddle East step up? Gold continues to slide today, 2.8% to $1,326 per ounce. as good an excuse as any for the selling. The metal's off 1.7% to a onemonth low of $1,340 per ounce. Silver follows suit, 2.4% to $22.60. Making the rounds among the ZeroHedge types was the halting of the entire market for 20 seconds overnight after a 2000 lot order sent gold down $10 in minutes. Most notable about the story is that gold hasn't rebounded since it's actually lost a few more dollars. GLD 1.7%, SLV 2.3% premarket. Precious metals ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI, SLV, SIVR, AGQ, DBS, USV, ZSL, USLV, DSLV, SLVO.
Pullback from Syrian military action hits gold, silver, oil
Precious metals and oil slide as the chance of Western military intervention into Syria fades. military strike ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI, SLV, SIVR, AGQ, DBS, USV, ZSL, USLV, DSLV, SLVO, OIL, USO, DBO, OLO, USL, CRUD, UCO, DTO, SCO, SZO, DNO, UWTI, DWTI, BNO, UOIL, DOIL.
The headline payroll number is a miss of just 11K jobs, but the combined revisions downward for June and July sum to 74K ghd sale positions. Unemployment, however, declined to 7.3% thanks to a fall in the labor force participation to a 35year low of 63.2% from 63.4%. The broader U6 unemployment rate falls to 13.7% from 14% in July, 14.6% a year ago. The employmenttopopulation ratio slips to 58.6% from 58.7%. Average workweek climbs 0.1 hour to 34.5 hours. Average hourly earnings climbs $0.05 to $24.05. A lookin on gold finds the price rallying postreport, GLD +1.4%.