Someone Seems To Be Working Overtime, In Precious Metals
May 30, 2019
Great and Wonderful Thursday Morning Folks,
Gold is trading lower this morning, that’s because yesterday was a positive day and it seems the rules of the exchange is “No Two Day Rallies Ever” with Gold now at $1,282.20, down $4.20 inside another tight trading range after the trade was pushed down to $1,279.20 with a high at $1,285.10. Silver is still signaling the Algos with its trade down 3.8 cents at $14.45 with the high at $14.485 and the low at $14.42, a trade swing of only 6.5 cents (someone seems to be working overtime). The US Dollar, the global currency lynch pin to it all, is now valued at 98.055, up 2 points after reaching up to 98.145 earlier with the low at 98.00. Of course all this is done way before America trades aka the Comex Open, and before the London Close.
The Emerging Currencies Market is showing Gold priced under the Venezuelan Bolivar to be trading at 12,805.97, taking back 62.92 Bolivar from yesterday’s gains with Silver at 144.319 gaining .998 in the overnight. The Argentine Peso now has Gold pegged at 56,971.28, losing another 588.77 of A-Peso value with Silver at 642.034 regaining 1.018 Pesos as the Silver Signal points higher under these 2 South American currencies. Turkey, which is closely aligned to the European mess now has Gold pegged at 7,546.81 proving a loss of 195.49 in T-Lira value with Silver at 85.0452 losing another 1.1704 in value.
Yesterday was the close out day for the May deliveries with the final count for physical Silver demands showing 194 fully paid for 5,000 ounce contracts waiting for receipts. Only 1 more purchase was made during the day but Harvey Organ’s count shows a settling of 119 leaving a balance. Hmmm, if we had a CFTC commissioner who was actually able to be reached and respond to our requests, we would ask them how this could be, then ask them about those Emergency EFP’s going to London these past few years and if they are really for physical deliveries or another part of the hidden paper play? But alas, these commissioners are not here to help us understand the play, they’re here to do something else. June Silver is now our delivery focus with the starting count at 306 obligations with a volume of 27 up on the board so far this morning. It is very possible that the 27 volume in June is an agreed upon rollover with more to come, time will tell, maybe. Apparently, yesterday’s rally was all about the shorts exiting their trades as the Overall Open Interest lost 7,140 overnighters in order to stay the price with a possible measure of how much of a spike Ag would make since the longs are refusing to exit their positions, leaving the shorts in trouble. This is what we want to see, hopefully the longs, that have “stayed the trade”, are as serious about their positions as the physical buyers are, who have been sopping up as much physical at these prices, knowing full well the future will be counting Silver with a much higher US$ value.
Bill Holter’s Commentary
This was only a matter of time…
Malaysia Proposes Common Asian Gold-Backed Currency
May 30, 2019
For years, gold bulls had speculated that China has been quietly piling up physical gold, awaiting the moment to unveil a gold-backed currency, either after the dollar’s reserve status falters or before.
Today, the Malaysian Prime Minister Mahathir Mohamad took one large step in that direction when he proposed the launch of an Asian version of the euro: a common trading currency for East Asia that, unlike the euro, would be pegged to gold, describing the existing currency trading in the region as manipulative (perhaps in reference to China’s currency setting framework).
According to the Malaysian PM, the proposed common currency could be used to settle imports and exports, but would not be used for domestic transactions.
“In the Far East, if you want to come together, we should start with a common trading currency, not to be used locally but for the purpose of settling of trade,” he said at the Nikkei Future of Asia conference in Tokyo. “The currency that we propose should be based on gold because gold is much more stable.”
He said under the current foreign exchange system, local currencies were affected by external factors and were manipulated. He did not elaborate on how they were manipulated, and whether his complaint was against the dollar or the yuan. That said, Mahathir has long been a critic of currency trading, and according to Reuters, he once accused George Soros of betting against Asian currencies.
Incidentally, during the Asian financial crisis two decades ago, Mahathir pegged the ringgit currency at 3.8 to the dollar and imposed capital controls. That peg was scrapped in 2005.
Earlier this week, the Trump administration said that no major trading partner met the criteria required to be placed on the U.S. Treasury Department’s list of its currency manipulators, it named Malaysia among nine countries that required close scrutiny. In response, Malaysia’s central bank said on Wednesday its intervention in currency markets was limited to managing excessive volatility.