Central banks globally added 69 tons of gold to their reserves in the third quarter, according to data compiled by the World Gold Council. This contrasts with a net decrease in reserves of over 10 tons in Q3 2020.
The October Consumer Price Index data came out this week. They expected it to come in hot. But not this hot. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey digs into the CPI numbers, along with another inflation index that looks even worse, and he wonders out loud how anybody can still buy into this “transitory” inflation narrative.
Gold demand remained strong in October according to the latest data released by the World Gold Council.
Both gold withdrawals from the Shanghai Gold Exchange (SGE) in October and gold imports in September were up year-on-year, and Chinese ETF gold holdings set a new record. These all signal that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.
Despite the Fed announcing it will begin tapering QE and a better than expected jobs report, gold rallied on Friday. In his podcast, Peter Schiff said this is sign sellers are exhausted.
The Federal Reserve wrapped up its FOMC meeting on Wednesday and finally announced the much-anticipated QE taper. The Fed will cut its bond-buying program by about $15 billion a month. But so what? In this episode of the Friday Gold Wrap, host Mike Maharrey digs into the Fed announcement and raises some very important questions.
The use of silver in electronics and electrical applications is expected to rise by 10% over the next five years. And this doesn’t include the expected demand increase for silver in the solar energy sector.
This is one of several silver-related stories covered in the latest edition of Silver News published by the Silver Institute.
Gold has been rangebound of late, bouncing between $1,750 and $1,800 an ounce for several months. Given the inflationary environment, one would expect gold to be soaring. So, what’s going on with the yellow metal? And when will the price of gold go up? Peter Schiff tackled this question during a recent Q&A session on YouTube.
Hedge funds closed shorts and went long in both gold and silver in October.
Please note: the COTs report was published 10/29/2021 for the period ending 10/26/2021. “Managed Money” and “Hedge Funds” are used interchangeably.
The Commitment of Traders analysis last month highlighted the potential over-extension of the shorts leading to a rebound. This proved to be the case in a big way. Unfortunately, the momentum lost steam and the $1810s for gold presented too much resistance.
I reported last week that Comex delivery activity was looking very quiet in both gold and silver. The results for November are very weak. That being said, October and November are historically slow months, so the real test will come in December.
This analysis focuses on gold and silver physical delivery on the Comex. See the article What is the Comex for more detail.
The Federal Reserve has slightly slowed its asset purchases over the last few months. Was this a trial mini-taper?
If so, the results are not good news for the central bankers over at the Fed.
The Fed balance sheet stands at $8.56 trillion. That’s up by $108 billion from the prior month-end, but down over the past week by $8.7 billion. The chart below shows how the Fed Balance sheet has grown by instrument over the last 18 months.
