• 4 hours Homeowners Experiment With Risky New Investment Trend
  • 7 hours U.S. Tech Stocks Look Increasingly Vulnerable
  • 10 hours De Beers To Expand World’s Most Profitable Diamond Mine
  • 12 hours Ford CEO Gets Raise After Massive Layoff Round
  • 1 day Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 1 day Where To Look As Gold Miners Inch Higher
  • 2 days Google Faces Billions In Fines From European Regulators
  • 2 days The Energy Industry Has A Millennial Problem
  • 3 days Russian Banks Scramble For Sanction Loopholes
  • 3 days Gold ETFs Take A Hit After Four-Month Run
  • 4 days European Union Takes Aim At Ten New Tax Havens
  • 4 days Goldman Defends Trillion-Dollar Corporate Buyback Spree
  • 4 days $600 Billion At Risk As Boeing Fallout Continues
  • 5 days Venezuela Has Yet Another Crisis Developing
  • 5 days Wells Fargo Accused Of “Ongoing Lawlessness”
  • 5 days Hollywood Agency Returns $400M Investment To Saudi Wealth Fund
  • 5 days Why Twitter's CEO Is Backing A New Bitcoin Boom
  • 6 days U.S. Treasury To Employ “Extraordinary Measures” To Fend Off Default
  • 6 days Lobster, Golf Carts And Fidget Spinners: What’s In The Federal Budget?
  • 6 days Italy Launches New Welfare Experiment
The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

  1. Home
  2. Markets
  3. Other

Gold Holdings in GLD Continue to Climb

A quick update on GLD for the readers and by request...

GLD reported another nice build in reported gold holdings today - about 5 tons. That comes on the heels of a nice increase the previous day of some 7+ tons.

GLD Gold Holdings versus Gold Price

Since October 1, gold holdings have climbed from 689.2 tons to 700 tons. While not a huge build, nonetheless, this is what one wants to see if the gold price is moving higher as it shows investment demand from Western-based investors.

That is a far cry from just a few months ago when gold holdings dropped over 41 tons in July and August alone!

Since the middle of September, there does seem to be more consistency in the buying by these Western players. Year to date, gold holdings are down about 9 tons since the start of the year but at least they are headed in the right direction if one is a gold bull.

This has all come on the heels of the Fed's reluctance/refusal to hike interst rates. In my view, their dovish attitude is due specifically to their targeting of the US Dollar and their wish to avoid doing anything that might be interpreted by the markets as favoring further Dollar strength.

I have said it before and will say it again - recent gold strength is due to this fact and this fact alone. It has nothing to do with economic collapse and resets, and whatever more madness the cult of gold can come up with to terrify the minds of the impressionable.

This FED WANTS A HIGHER GOLD PRICE at this time. As a side note - this is the reason why the gold cult and their priests and prophets and gurus and watchers, who scream about "evil manipulators, flash crashes, cartel raids, etc." are completely clueless and have no idea what they are yapping about.

The Fed wants higher commodity prices in general as they are desperate to avoid anything that smells of deflation. As previously noted - falling commodity prices are generally regarded (and generally desired) by the Fed as it benefits the consumer; however, collapsing commodity prices pose the very real risk of producing large layoffs in those industries that deal with these products.

If you have any doubt about this, just consider what has happened to the Oil Patch as crude oil prices have collapsed.

That downward spiral in prices has led to lower gasoline prices (which consumers and transportation companies welcome) but they also have led to large job cuts as well; so much so that many of the small towns in the regions where Shale Oil has been the former success story are now hurting big time.

The Fed therefore understands that at a certain price level, the law of diminishing returns begins to apply. Thus the reason they want a weaker Dollar so that the pressure on commodities can be lifted. They are very concerned and very focused on the jobs picture in this nation and thus keenly aware of what additional Dollar strength can do to harm that.

My biggest point of interest at this time is how Mario Draghi and the ECB are going to react to this recent weakening of the Dollar. Will they employ a round of verbal intervention to try talking the Euro back down or have they reached some sort of settlement with the Fed to leave the Euro in the general vicinity of where it is currently trading just as long as it does not strengthen significantly from current levels. Remember, the Euro is some 9% higher than it was at its depths this year when the ECB first announced their intent to employ their own version of Quantitative Easing.

 

Back to homepage

Leave a comment

Leave a comment