The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Monday, July 31, 2017

The Daily Economist update for July 31 2017 - Dollar, dollar, toil and trouble


Gold and silver both look to breakout as dollar falls below 93 and its lowest level in 13 months

It did not take long on Monday, July 31 for the dollar to break below the 93 handle and fall to its lowest level in 13 months.


And with the dollar so far losing around 9% of its strength since the beginning of the year, even mainstream analysts are predicting that this trend could very well send gold and silver prices much higher.
The price of gold could see substantial upside as the U.S. dollar index continues sliding in value, some strategists are forecasting. 
The greenback has declined nearly 9 percent against a basket of foreign currencies year to date as the likelihood of parts of President Donald Trump's economic agenda getting underway has been called into question, and the prospect of further interest rate hikes from the Federal Reserve has pulled back. 
The dollar index could certainly drop to the 92 mark (about 1.5 percent below its closing price Wednesday of 93.40), said Phillip Streible, senior market strategist at RJO Futures. And though these levels are important to watch in the dollar, what's more interesting to him is the impact on gold prices and other commodities. 
"We could really see other markets, like gold, push up through that $1,300 level. We could see silver recapture $18. We could see oil prices — they've already got some bullish fundamentals buoying them — but with the dollar selling off like this, you are probably going to see that … recapture $50 again," he said Wednesday on CNBC's "Trading Nation."
And analysts at CNBC are not the only ones forecasting a breakout for gold and silver.

Gold:


Gold hit its highest in almost seven weeks on Monday, boosted by a struggling dollar and U.S. economic data that has cast doubt on whether the Federal Reserve will raise rates again this year. 
Spot gold was down 0.1 percent at $1,267.7 an ounce at 1337 GMT from an earlier $1,270.98, its highest since June 14. It is on course for a two percent rise this month. 
"Dollar weakness is driving the gold price. It's not just against the euro, it's against most major currencies," said Commerzbank analyst Eugen Weinberg. "U.S. politics is a mess and U.S. data has not been inspiring." 
"We think that there is more upside on gold," said INTL FCStone analyst Edward Meir in a note. "A combination of a weaker dollar and falling U.S. bond yields should propel the precious metal higher, with North Korea being a wild card." - Reuters
Silver:

Chart courtesy of SD Bullion
What a difference a week makes.  After struggling early on last week, after a hesitant Fed and a lip-sticky pig GDP estimate for the 2nd quarter, the silver price is breaking out here early Monday morning in the pre-market action.  Rally possible as early as today. 
Silver solidly punched through and closed above the 50 day moving average on Friday.  Today looks to be a gap-up at the open.  Silver can break-out to the upside in a big way here! – Silver Doctors

Sunday, July 30, 2017

Bitcoin IRA growing as an investment and retirement vehicle for the millennial generation

When you combine a technology based asset like Bitcoin with the ease of an IRA, it suddenly becomes a no-brainer for the millennial generation who wants to invest in something unique without having to do the legwork of researching financial products.

The Bitcoin IRA is suddenly becoming a new go-to option for young investors who love dealing with high risk while at the same time being able to put their money into an investment vehicle where all they have to do is 'set it and forget it'.

Thousands of American investors as young as 20 years old are investing their hard-earned money in Bitcoin despite the high risks. 
Duke University finance professor, Campbell Harvey, has warned that the kind of price volatility facing cryptocurrencies is very brutal due partly to the reason that they are not collateralized.
Harvey says: 
"I'm worried that people will put too much of their retirement in an asset like this. It's a very small piece of the market right now and it's extremely volatile. To put this into your savings, you need to be willing to lose everything. If you put your retirement savings into the stock market, there is almost no chance that you're going to lose everything." 
Currently, platforms like Bitcoin IRA enables their investors the tax advantages of an individual retirement account (IRA) and the return of a high-risk, high-reward alternative asset class. 
Similar to traditional IRAs in terms of its mode of operations, but instead of being financed by cash, gold and bonds, it is bankrolled by Bitcoin. – Coin Telegraph
Contrary to what the mainstream business community is telling the public, the majority of Americans are not playing in the equity markets outside of a small percentage who hold some or all of their retirement monies in a mutual fund.  And with bonds and real estate no longer being feasible tools to try to grow one's wealth due to low interest rates and spiraling costs/prices, cryptocurrencies, and the new and upcoming products tied to these forms of virtual money, are extremely enticing, especially to the younger investor who doesn't really see the risk in their investing, and who loves the experience of buying into a technology based asset.

Saudi Arabia's Aramco IPO could be the trigger to both ending the petrodollar, and ushering in gold backed Chinese RMB

There is some very interesting analysis emerging from two viable sources that shows that the ending of the petrodollar, along with the introduction of a gold backed Chinese currency, could be intrinsically tied to Saudi Arabia's planned IPO of their Aramco oil conglomerate.

On July 30, economist and statistician Dr. Jim Willie wrote in his monthly newsletter that the upcoming public offering of a stake in Saudi Arabia's Aramco oil conglomerate looks very likely to be the vehicle for China to get a toehold into the Middle Eastern oil trade, and from there have the impetus to 'encourage' the rest of the Middle East and OPEC to either begin or fully invest in selling their oil in Chinese RMB rather than U.S. dollars.

The Chinese are always opportunistic. They invest in trade and structural placements, in the hope of winning commercial partners and friends. They do not wage war to win their way. The Chinese are observing the ARAMCO deal and its massive snag. They might hand to the Saudis an over-valued offer on a gilded platter. China has stayed away from any direct involvement in the Yemen War. However, they might be the supplier of some missiles used in Yemen by the native defenders, delivered by the Iran Military. China might over-pay for a stake in the ARAMCO company for two reasons. First, they want a toe-hold in the kingdom, in order to win other trade deals with a degree of exclusivity. They would become a favorite foreign son in the process, especially if other Western financial houses refuse to invest in the bloated over-valued petro-chemical firm. 
Second, the Chinese would then be in a position to demand that oil sales to China be paid in Yuan currency, in RMB terms. The ARAMCO investment, large or small, would serve as leverage to fracture the Petro-Dollar at its home base, within Saudi Arabia. The shock waves would be heard around the financial world. 
Once the Chinese win the privilege to buy Saudi oil in RMB terms, the other Gulf Arab oil producers will match the offer of selling oil to the Chinese in their own currency, and NOT in the USDollar. The Petro-Dollar defacto standard is about to suffer multiple coffin nails. The rival Gulf Arabs will not wish to lose market share to the Saudis. They will permit the Chinese payment terms in RMB, a no-brainer. - Goldseek
Once China has a controlling interest in the Middle Eastern oil trade, and pushes OPEC into accepting the RMB for oil and natural gas purchases, the next step in their plans is to back these trade contracts with gold, and usher in a return to a form of the gold standard through its own currency.
As I also said in my last interview, I believe that while gold already has bottomed, the real marker – the sign it’s ready to embark on an explosive uptrend – will come once the Chinese start trading oil based on an Eastern benchmark – perhaps initially denominated in renminbi and then in some combination of renminbi and gold.  
The Chinese, burned in 2008 by the West-engendered financial crisis, view the dollar with abiding distrust, and in conjunction with ever scarcer oil see relying on it as a recipe for disaster. If oil starts spiking, they will stop it by making sure oil trading no longer is done solely in dollars, and that the bulk of it is backed by other currencies, especially gold. I don’t think this is imminent, but I also think an oil spike could happen a lot faster than most people think. 
So the statistic I’m watching most closely is the price of oil. If black gold starts running, I want to own yellow gold, lots of it, as the currency that will be able to buy oil. – Stephen Leeb via King World News
Russia is already on board with denominating oil and natural gas sales in Chinese Yuan, and their own gold reserves are fully capable of handling a new gold backed oil trade as well.  And the combination of Chinese control over OPEC pricing along with Russia's infrastructure and production capacities in energy will be enough to overwhelm America's control over energy through the petrodollar, and bring about a new financial order that is no longer dominated by a singular reserve currency.

Saturday, July 29, 2017

The Daily Economist update for July 29 2017 - In the EU, your money is really their money


EU preparing new rules to freeze your money without notice to protect failing banks from bank runs and withdrawals

In 2017 the global banking system has seen at least three major bank runs take place in institutions residing in Canada, Spain, and Italy where depositors took proactive steps to get their money out before these facilities either collapsed, or engaged in a bail-in to protect themselves against total insolvency.  And while the governments of these countries showed restraint in either calling for a bank holiday or conducting a confiscation of depositors monies, this may soon be changing as the European Union has issued a new proposal allowing the legislative body to freeze bank accounts in any EU nation where a given bank may be on the cusp of bankruptcy or insolvency.

Graphic by Spiros Derveniotis
If there is a run on the bank, any bank in the EU, you better be among the first to get your money out. 
Although it’s your money, the EU wants to Freeze Accounts to Prevent Runs at Failing Banks
European Union states are considering measures which would allow them to temporarily stop people withdrawing money from their accounts to prevent bank runs, an EU document reviewed by Reuters revealed. 
The move is aimed at helping rescue lenders that are deemed failing or likely to fail, but critics say it could hit confidence and might even hasten withdrawals at the first rumors of a bank being in trouble. – Mish Talk
Whenever you see governments or financial regulators instituting laws (such as Dodd-Frank in the U.S.) which remove your power and rights over your own money, then it needs to be seen as a warning that they know something major is about to take place, and are preparing on their side for that event.  And it also means that the clock is now ticking for you as a depositor, who must decide what to do with your own wealth before politicians or central bankers get to decide for you.

Friday, July 28, 2017

Zimbabwe building up gold and diamond reserves to use to back their new currency

Western economists and central bankers hate the gold standard because it holds banks and politicians accountable, and destroys the ideological agendas of government expanded debt.  But with more and more individuals around the world demanding a return to some form of resource backed money, it is inevitable that the future will entail some form of gold or commodity based currency.

Over in Eurasia and the Far East, Russia and China are currently working on a process to bring about gold backed trade notes, and tying energy sales to precious metals.  But they may actually be second to another country that is now in the process of building reserves in both gold and diamonds to back a currency that has been the laughing stock of the world for nearly 20 years.

Government is building diamond and gold reserves to back the local currency upon its re-introduction in the future, Vice-President Emmerson Mnangagwa has said.  VP Mnangagwa refused to disclose when the local currency would be re-introduced, but said it would only come back when mineral reserves reached desired levels. - Herald Co ZW

Gold breaches $1270 and silver up over 1% following disappointing GDP numbers and prior quarter revisions

Is it any wonder that Janet Yellen intimated earlier this week that the Fed may be done with interest rate hike program following today's very disappointing Q2 GDP numbers and subsequent revisions lower for prior quarters?  Perhaps the economy is not as 'transient' as Mother Felon believes.

Needless to say, this economic outlook here on July 28 didn't do much to boost stocks or the dollar, which are both moving lower in the markets, however it seems to have sent a nice signal to gold and silver, which has so far moved decently higher in early and mid-morning trading.


In the latest double negative whammy for the economy, not only did Q2 GDP print fractionally less than expected, at 2.6% vs consensus expectations of 2.7%, but Q1 GDP of 1.4% was also revised slightly lower, from 1.4% to 1.2%, while the Fed's favorite inflationary metric, core PCE, tumbled from a downward revised 1.8% to 0.9%. 
PCE rose 2.8% and was the biggest contributor to growth. Business investment, net exports and federal government spending were also positive. Inventories, residential investment and state and local government spending were drags on growth 
The BEA also released its annual update of GDP figures using "newly available and revised source data" for the 2014 - 2016 period. From the fourth quarter of 2013 to the first quarter of 2017, real GDP increased at an annual average rate of 2.1 percent, the same as previously estimated. For all of 2016, GDP was revised down slightly to 1.5%, from 1.6% previously. For 2015, growth was revised from 2.6% to 2.9%. for 2014, GDP was revised to 2.6 from 2.4% previously 
GDP prints starting in Q3 2016 and through Q1 2017 were all revised lowerOne amusing finding here is that following the revisions, Q3 2014 GDP is now said to have been 5.2%, while that abysmal Q1 2015 GDP print which was blamed on the weather is now 3.2%. - Zerohedge

Use of Bitcoin and cryptocurrencies not really catching on in India as 97% surveyed admit hearing about it, but aren't buying into it

In a recent survey among members of the PHD Chamber of Commerce and Industry in India, 97% replied that they have heard about Bitcoin and cryptocurrencies but most have chosen not to use the digital currency due to numerous factors including that it is backed by nothing more than demand.

A study by India’s market and trade body has found that while 97 percent of participants are aware of bitcoin, its use within their services remains low. 
PHD Chamber of Commerce and Industry, which plays a role in India’s industrial development processes, hosted a meeting ‘Roundtable on Industry Perspective on Bitcoins: A New World of Payments and Deals,’ on Wednesday, according to News 18
According to the report, the trade and industry body asked 223 stakeholders ranging from fabrics, electronic devices and automobile parts, to determine the impact that bitcoin was having in India. 
However, results found that while 97 percent of participants are aware of the digital currency, its use within companies remains low. 
Gopal Jiwarajka, President of the PHD Chamber of Commerce and Industry, said:
Absence of the information about counterparties in the bitcoins transaction is a major drawback and may lead to unintentional transactions such as money laundering. 
He added that the use of bitcoin comes with huge risks and is not backed by any tangible asset, but sheer demand. - Crypto Coin News
This extremely high rate of caution when it comes to Bitcoin by the world's second largest country by population, and seventh largest by economy is probably not surprising since India's history is based on physical gold being their primary store of wealth, with individuals and businesses having a severe distaste for anything considered fiat or unbacked, such as with their own sovereign currency or in this case, of cryptocurrencies in general.

Thursday, July 27, 2017

Total government and consumer debt in the U.S. is nearly 2.25 times the nations annual GDP

In 2016 the Gross Domestic Product (GDP) for the U.S. came in around $18.57 trillion, with over 90% of that being government (34%) and consumer (61.1%) spending.  This means that virtually the entire economy depends on the government and its citizens continuing to spend money.

Yet because of the fact that the real economy has seen rates of inflation since 2008 reside between 6 - 10%, and wages have not increased in relation to this factor since around 1978, consumers as well as politicians have had to borrow money at ever increasing rates just to sustain a less than 2% growth rate.

The accelerated rise in debt for all segments of America truly began around 1980, when total debt between government and citizens was around $3 trillion.  And during that year GDP came in at $2.86 trillion, making the debt to GDP ratio nearly 1:1.

Today however the American economy cannot sustain itself without an ever increasing amount of debt, and in a new report on July 27, the total amount of debt between consumers and government is at a whopping $41 trillion, and this means the debt to GDP ratio is now at 2.25:1.

We are living in the greatest debt bubble in the history of the world.  In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars.  That means that it has increased by almost 14 times since Ronald Reagan was first elected president.  I am searching for words to describe how completely and utterly insane this is, but I am coming up empty.  We are slowly but surely committing national suicide, and yet most Americans don’t even understand what is happening. 
According to 720 Global, total government debt plus total personal debt in the United States was just over 3 trillion dollars in 1980.  That broke down to $38,552 per household, and that figure represented 79 percent of median household income at the time. 
Today, total government debt plus total personal debt in the United States has blown past the 41 trillion dollar mark.  When you break that down, it comes to $329,961.34 per household, and that figure represents 584 percent of median household income. - The Economic Collapse Blog

Gold hits six week high as analysts forecast $1300 price with dollar continuing to fall

Yesterday the Federal Reserve provided new dovish remarks which sent odds makers scrambling over whether or not the central bank would raise rates between now and the end of the year.  And with economic conditions, as well as the dollar sinking deeper towards recession, gold prices responded with a huge jump over $1260, and to their highest level in six weeks.

Gold prices marched higher Thursday following a Federal Reserve policy update that was read as mostly dovish by investors, supporting gains for the commodity. 
August gold GCQ7, +0.74%  was up 8.40, or 0.7%, to $1,257.90 an ounce, paring a bit after reaching an intraday peak at $1,265. A finish around its current level would be close to the highest since June 14, according to FactSet data. September silverSIU7, +0.64% also jumped 19 cents, or 1.2%, to $16.765 an ounce, also off its intraday high of around $16.81. - Marketwatch

Additionally because of the Fed's commentary and reactions by the dollar heading towards a 92 handle on the index, analysts are now changing their former negative forecasts for gold and see the price heading towards $1300 in the near future.
The dollar index could certainly drop to the 92 mark (about 1.5 percent below its closing price Wednesday of 93.40), said Phillip Streible, senior market strategist at RJO Futures. And though these levels are important to watch in the dollar, what's more interesting to him is the impact on gold prices and other commodities. 
"We could really see other markets, like gold, push up through that $1,300 level. We could see silver recapture $18. We could see oil prices — they've already got some bullish fundamentals buoying them — but with the dollar selling off like this, you are probably going to see that … recapture $50 again," he said Wednesday on CNBC's "Trading Nation." - CNBC

With the SEC labeling ICO's as securities, Wall Street bankers jumping on board this new Wild Wild West of investment

A few days ago the SEC came out with a new ruling that stated that ICO's (Initial Coin Offerings), are to be regulated as securities and not as a virtual currency.  And this move is appearing to come as more and more startup businesses are using the ICO model for capital investment over the more traditional forms of IPOs (Initial Public Offerings) and venture capital.

So with this new regulation in place, and bankers and investors looking desperately for new assets to put their money into, it should come as nor surprise that Wall Street is suddenly going full bore into ICOs, with one hedge fund now backing 20 different startups using this platform.

Richard Liu, a former dealmaker at Renaissance China, left the world of finance for the told Bloomberg he left the banking world behind for the chance to climb aboard a “rocket ship” – in reality a $50 million hedge fund that’s invested in 20 ICOs this year, including Tezos, one of the most successful ICOs in the industry’s brief history. 
“For Liu, who put together some of China’s biggest tech deals in his old job, the chance to shape the nascent arena outweighs the dangers of a market crash or crackdown. Loosely akin to IPOs, ICOs have raised millions from investors hoping to get in early on the next bitcoin or ether, and their unchecked growth over the past year is such that they’ve drawn comparisons to the first ill-fated dot-com boom. Yet with stratospheric bonuses largely a thing of the past, the allure of an incandescent new arena far from financial red-tape has proven irresistible to some. 
‘Traditional investment banks and VCs need to monitor this space closely, it could become very big,’ said the 30-year-old partner at $50 million hedge fund FBG Capital, which has backed about 20 ICOs. He’s off to a quick start, getting in on this year’s largest sale: Tezos, a smart contracts platform that raised $200 million to outstrip the average Hong Kong IPO size this year of around $31 million. 
‘Unlike the traditional financial sector, there are no ceilings or barriers. There’s so much to imagine,’ he said.’ - Zerohedge
Welcome to the new Wild Wild West of Wall Street on the blockchain.

Russia is colluding to take down the U.S... but it isn't through elections or cyber hacking

Governments and politicians have for years used false narratives as a means to hide their real agendas from the public, and to try to turn their adversaries into the bad guys when in reality they are the ones conducting diabolical policies.  And the fake narrative of Russian interference and collusion in last year's election is simply another one of these prime examples.

We have written many times before that the only real things the U.S. exports anymore are weapons and inflation.  And they do this to protect their remaining control over the world having to buy dollars to conduct most trade.

But the fact of the matter is the world is in the process of rejecting the dollar, and U.S. hegemony over the global financial system, and in this politicians are correct in their accusations of Russian collusion, but it has nothing at all to do with elections or even with cyber hacking such as what took place with the DNC's emails last year.

No the real collusion that is taking place between Russia and China, and their efforts to take down the U.S. by both destroying the dollar by seeking to eliminate the petrodollar system, and through bi-lateral trade agreements that will one day see a return to gold backed money.

Russia has a clear, national policy to accumulate gold within its state treasury. That’s because Russian policy makers are concerned about U.S./Western actions, including economic sanctions, NATO expansion, near-constant and long-term bellicose rhetoric and more. 
Russian policymakers are pushing back, as you likely know from following the news. Russia is confronting the U.S./West not just directly — by building submarines and missiles, and deploying troops into Syria, for example — but also via asymmetric means. 
One U.S./Western weakness, in the eyes of Russian policymakers, is the dollar — the currency used for international trade. Russian strategists detect a long-term decline of value and global significance for the U.S. buck. It’s a wide-open target for asymmetric push-back. 
According to a recent report in Russia’s Sputnik News, “In the years to come, global financial markets will see a significant devaluation of the American currency… Russia and China continue to stockpile gold in a bid to cut their economies’ dependency on the U.S. dollar in the future.” – Daily Reckoning
The reality is that Russia had nothing to do with the coup in Ukraine, or the conflict that is finally winding down in Syria.  These were both foreign policies concocted by Washington to try to sting Moscow as they move forward in the construction of a new Eurasian order, and in the process bring Middle Eastern countries into their fold under the auspices of a new energy cartel which would replace OPEC and no longer require the world to have to buy dollars to purchase oil and natural gas.  But like the economic sanctions the U.S. imposed on Russia back in 2013, and are looking to increase for no real reason except as spite for their failures to bring Putin to his knees, all the U.S. will succeed in doing is accelerating their demise, similar to how the former Soviet Union tried to double down to compete with President Reagan's arms race back in the 1980's.

The world is changing financially and monetarily, and it is doing so both at the sovereign (Russia and China) and private (cryptocurrencies) levels.  And unless Washington changes their course to try to become part of this paradigm shift rather than try to keep it from occurring, their future will lie in isolation and collapse, just as it did for Russia 25 years ago before they found the strength in themselves to learn to adapt to change.

Wednesday, July 26, 2017

The Daily Economist update for 26 July 2017 - U.S. may only be sanctioning themselves


Tuesday, July 25, 2017

Daily volumes for Bitcoin have surpassed trading volumes for Wall Street's primary paper gold ETF

It is interesting to see some of the parallels made when it comes to Bitcoin and other cryptocurrencies.  Is it comparable to the dollar and euro, which are part of a $5-7 trillion daily market known as FX?  Is it comparable to physical gold and silver, thus designating it as a commodity versus a currency?  Or is it a virtual security on par with equities and bonds?

Either way, analysts have begun to make multiple cases for it being tied to each sector of the market.  And on July 25 and analyst at Bank of America published a new update in which he noticed that volumes for Bitcoin have now surpassed the volumes traded for the primary Wall Street vehicle for gold, which is the GLD ETF.

Several weeks after Goldman's chief technician started covering bitcoin, overnight Bank of America has released what some may call an "initiating coverage" report on bitcoin which notes that while the cryptocurrency remains very volatile and risky, bitcoin has experienced a spectacular surge in liquidity in the last six months. However, BofA remains stumped when it comes to making any official forecasts BofA's commodity strategist Francisco Blanch writes that bitcoin is uncorrelated to any financial asset, "so there is no way to explain let alone predict returns." 
While we will present some of the more notable findings from the report shortly, one observation caught our attention, namely that in at least one regard, bitcoin has already surpassed gold: the total daily trading bolume for bitcoin has now surpassed that of the biggest gold ETF, the GLD. 
As BofA notes, "it is hard to ignore that trading volumes for major digital currencies like bitcoin and ethereum have skyrocketed in recent years. For example, daily trading volumes for bitcoin were $400mn in 2012 and have now moved up to about $2bn a day at present" which also means that - at current BTC prices - the total ADV of BTC traded is higher than that of GLD. - Zerohedge
While we have to note here that the above comparison is not a true relation between Bitcoin and physical gold, but rather between Bitcoin and an equity representing gold, it does suggest that the cryptocurrency is conducting battle against multiple securities which are dependent upon how investors themselves see Bitcoin as, and thus how they choose to trade it as.

China's LME will soon be publishing their own gold and silver fix prices in parallel to London

On July 25, officials from the Hong Kong owned London Metals Exchange (LME) announced they would soon be publishing their own daily gold and silver prices in parallel to the long-standing London Gold Fix.

The LME had until recently applied to the LBMA to take over the daily metals benchmark pricing following the CME and Thompson-Reuters early exit from their price fixing scheme, but the LBMA instead chose the Intercontinental Exchange (ICE) earlier this month to take over the London Gold and Silver Fix.

The London Metal Exchange (LME) will start publishing gold and silver reference prices, the exchange told Reuters on Tuesday, potentially challenging the dominance of benchmarks administered by Intercontinental Exchange (ICE). 
Precious metals producers and consumers around the world use benchmarks owned by the London Bullion Market Association to price contracts. 
Intercontinental Exchange (ICE) sets the LBMA Gold Price twice a day via an electronic auction, and was selected this month to administer the LBMA Silver Price, defeating a rival bid by the LME. 
The LME will publish alternative prices based on trading of its gold and silver futures, launched earlier this month. "Following a number of requests from key precious metals market participants, the LME intends to publish intraday reference prices for its gold and silver contracts," the LME told Reuters. - Straits Times
In the end, how this will affect the paper and futures price has yet to be seen, however the LME recently was given a license to conduct its own futures contract in gold and silver, and this means that the potential for a parallel price mechanism that is divergent from the one conducted by the LBMA each day is highly probable.  And as we have seen over at the Shanghai Gold Exchange, where the price in the world's largest physical market is often higher than the paper price determined daily in London and New York, the chances of the LME siphoning off businesses from the Comex into their own contracts could facilitate an arbitrage, and an eventual usurpation of the LBMA's control over the prices of gold and silver.

Monday, July 24, 2017

Good news or bad as Rothschild's officially get into the Bitcoin space

On July 23 it was revealed that Rothschild Investment Corporation filed with the SEC their purchasing of $210,000 worth of Bitcoin through the Bitcoin Investment Trust.  This is the first 'official' document that shows the world's largest banker family has gotten into the cryptocurrency sphere, and begs the question to those banking on decentralized money whether this is good news in the long run, or bad news for the sector.

It is always interesting to see new faces pop up in the world of Bitcoin and cryptocurrency. In most cases, these are individuals looking to diversify their existing portfolio. However, a SEC document shows the Rothschild family has bought close to US$210,000 worth of Bitcoin recently. Although this is only a small amount, they purchased it through the Bitcoin Investment Trust. An interesting turn of events, to say the least. 
Very few people expect families such as the Rothschilds to pay attention to Bitcoin. After all, they are the biggest family in the banking sector today. There would be no incentive for them to pay attention to a banking competitor by any means. Let alone see them buy Bitcoin for an unknown reason. Interestingly enough, that is exactly what happened. 
A report on the SEC website confirms this purchase, which is rather significant.
More specifically, the document is filed by Rothschild Investment Corp. In this report, Bradley C. Drake, Executive VP of the company, confirms the company has purchased US$210, 000 worth of Bitcoin through GBTC. Over the past few years, we have seen how the Bitcoin Investment Trust continues to make media headlines. Now that the group is on the radar of the Rothschild family, things will get a lot more interesting. The amount is rather small, though, which leaves a lot of room for speculation. - Live Bitcoin News
Obviously no one really knows if this purchase by Rothschild is just a speculative investment as the price is expected to move higher as global currencies shift away from the dollar, or if there is some other scheme in place since the banking cartel relies heavily upon the control of debt based sovereign currencies to siphon wealth away from the masses.  Either way, one could say that Bitcoin has now hit the mainstream with the entry of the Rothschilds into the game, and for holders of the cryptocurrency looking for higher prices this in the short-term appears to be a very good sign.

Turkey joins with Russia's alliance of energy countries ramping up their gold purchases

A week ago we wrote about Sberbank's inclusion onto the Shanghai Gold Exchange as it appears more and more that the Eurasian energy power is preparing with China for an eventual gold backed trade system that could potentially run on a blockchain platform.  And in addition to this, Russia has also been increasing their purchases of physical gold on the open market to the point where they are now 'officially' the 6th largest holder of gold in the world.

As the movement towards transitioning energy sales away from the petrodollar and into gold or a form of cryptocurrency backed by gold continues to take shape, more and more nations such as Belarus, Kazakhstan, Kyrgyzstan, and now Turkey are also buying large quantities of gold in preparation for this paradigm shift, and a change in the balance of power.

What caught our attention (besides obviously the ‘Russian Alliance’ –consisting of Russia, Belarus and Kazakhstan – buying more gold), was the behaviour of Turkey. Not only are the Turks buying more gold at a substantially more aggressive pace than the Russians adding 950,000 ounces of the yellow metal in just three months, the purchases are also much more meaningful when you look at the bigger picture. 
In just three months, Turkey has increased its gold reserves by in excess of 7% and that’s a really substantial step for a relatively small country. What makes it even more interesting is the fact Turkey was a huge net seller in 2016 as it sold in excess of 3 million ounces of gold between June and December before increasing its position again (at a rather aggressive pace). - Zerohedge

Saturday, July 22, 2017

The Daily Economist update for 22 July 2017 - Bitcoin crisis averted and ready to move higher


Capitulation may have finally hit gold and silver markets as prices rising at time of near record short positions

With gold prices rising $24 to close at $1254 for the week, an interesting trend appears to be forming which forecasts that traders may have finally reached the point of capitulation, and where prices should be ready to go much higher.

This capitulation is often derived from when a market has mostly sellers, and the sentiment for the asset class is primarily negative.

The gold futures and silver futures short positions held by speculators have rocketed up to extremes in recent weeks. These elite traders are aggressively betting for further weakness in gold and silver prices. But history has proven extreme shorts are a powerful contrarian indicator. Right as speculators wax the most bearish as evidenced by their collective bets, gold and silver decisively bottom and birth major new rallies. - Seeking Alpha

Friday, July 21, 2017

Gold price moves back over $1250 and at highest level in a month as dollar falls below 94 on the index

On July 21 gold prices moved above $1250 for the first time in a month, and have recovered over $40 from their recent declines over the past three weeks.  And while gold appears to be in a definite upward trend since it crossed over its 200 day moving average earlier this week, the dollar continues to fall as it now has broken below 94 on the dollar index.

Gold Chart:


Dollar Chart:

On Friday, gold breached thresholds that market technicians tend to view as indicating a bullish trend is under way. Notably, gold prices are trading above their 100- and 50-day moving averages, both around $1,250, as a broad measure of the U.S. unit, the ICE U.S. Dollar Index DXY, -0.33% which compares the buck against a half-dozen other currencies, traded about 1.7% lower month to date. On Friday it was down 0.3%, with the euro EURUSD, +0.3955% which represents the biggest weighting in the ICE dollar gauge, up 0.2% versus the greenback. 
“The dollar has been under serious assault, which has pushed the price of gold higher,” said Naeem Aslam, chief market analyst at ThinkMarkets UK. “As long as the dollar bleeds, we do think that the gold price would continue to move higher and could touch the level of $1,300.” - Marketwatch

Thursday, July 20, 2017

More information revealed about Andrew Maguire's call for a 250 ton gold purchase and a new gold backed cryptocurrency

More than a month ago, well known metals analyst and industry whistleblower Andrew Maguire dropped a bombshell during an interview with King World News that an entity was going to come into the gold market seeking to purchase 250 tons of metal in one fell swoop.  Later discussions and interviews seemed to assert that this buying would be done by one or more sovereign governments, but on July 20, there appears to be a secondary outlet tied to Maguire's information that is requiring massive amounts of physical gold and silver to facilitate the creation of a new metals backed cryptocurrency.

We have been following the somewhat cryptic comments that London metals trader Andrew Maguire has made about an event coming in the gold market that he suggests will be significant. We submitted a brief written set of questions to his representative to get more details, but have not heard back yet. We believe Mr. Maguire has probably been traveling and working on activities related to the launch of the new product he has hinted at. If he does get time to reply, we will publish his answers to the questions. 
Meanwhile, we did a little sleuthing and actually have found quite a bit of information about this new gold backed cryptocurrency. David Gibson of Goldvu.com confirmed by email that this is the new product Andrew was talking about. It will be called Bullioncoin. Here is quite a bit more detail about it. Below are some key bullet points from the web site on how it will work and then a few added comments. 
SIMPLE SUMMARY OF HOW IT ALL WORKS 
The following is a simple overview of the whole BCX and BullionCoin process: 
1.Primary market participants buy physical precious metals at the wholesale contract rates & hold Title of Ownership to it 
2.  Those participants then authorise for BullionCoins to be created/minted against their precious metals 
3.  Minting / creating BullionCoins is just a process of digitisation of the Title of Ownership to that metal 
4.  Primary market participants then sell those digital coins into the secondary (retail) market 
5.  That sale, is the selling of the Title of Ownership from the primary market participant to multiple retail investors 
6.  The digital coins that those investors now hold, act as an electronic Bearer’s Title to the physical gold & silver that’s backing it 
7.  Coin holders can use them in transactions and trades, in the same way that you use fiat currency 
8.  As the coins are electronic Bearer’s Titles to the physical precious metals backing them, investors holding those coins can then redeem them at any time in exchange for the equivalent quantity of physical gold & silver that those coins represent

My added comments: Now that we see how this new gold backed cryptocurrency product will work, a question in my mind was if the 250 tons of gold buy orders that Andrew Maguire has talked about recently might tie in to the launch for this new product. I am advised by David Gibson of GoldVu (see email exchanges below) that the two events are likely separate and that as far as he (David Gibson) knows the 250 tons of sovereign gold buy order does not relate to the launch of the new gold backed cryptocurrency – only Andrew can confirm that. 
This is an interesting new product. It appears to actually combine block chain technology with a new cryptocurrency coin 100% backed by physical gold and silver. The gold Bullioncoin will be equivalent to one gram of gold while the silver Bullioncoin will be equivalent to 50 grams of silver. (note: 1 troy ounce = 31.1 grams) – Larry White via Silver Doctors

The gold versus Bitcoin debate is really about obsession rather than fundamentals

With Bitcoin and many other cryptocurrencies seemingly draining potential monies that would have in the past gone into gold and silver, there has been a raging debate among the alternative media sphere over which is better, and even over which is more relevant following the advent of the Blockchain.


In fact, there has been a very recent back and forth between silver advocate Chris Duane regarding his beliefs that Bitcoin as not a viable currency or store of wealth for the future, and Bix Weir, who claims in his refutation to this that Duane lost his clients and subscribers 'billions' by not giving them the 'facts' on the cryptocurrencies.



Yet with all the rhetoric, and the 'red lines' being drawn among both sides of the gold/silver vs. Bitcoin debate, what are the facts?  And more importantly, what do each separate asset provide savers and investors in their portfolios?

Gold and silver have been a proven and accepted store of wealth for thousands of years, and at certain times in history both have been used and accepted as money.  Bitcoin, Ethereum, and the myriad of cryptocurrencies on the other hand have a track record going back just eight years in human history, and according to how they are both seen and traded in the market place, do not at this time function as either a currency or as a store of wealth.

Now to be absolutely fair here, cryptocurrencies do act as a medium of exchange, but not in the same way currencies such as the dollar, euro, and yen do.  Instead they function as a medium of exchange similar to the way U.S. Treasuries do, which as AAA rated instruments, are as 'good as dollars' but must go through a third party conduit to function as a medium of exchange.

Ie... when XXX retailer in the U.S. buys manufactured goods from a company in China, they send over Treasuries rather than pallets of dollar bills.

It is the same way with Bitcoin for the most part.  When someone wants to use Bitcoin to pay for a product or service at Target for example, they cannot simply send an amount from their Bitcoin wallet to the cashier of the retailer, but instead must fund an exchange or card service that does the conversions for them from Bitcoin to dollars, and then use those conduits to pay for whatever item they want to purchase.

Additionally, when you go into a store like Target they do not have their items priced in both dollars and Bitcoin, so the reality is the business isn't really accepting Bitcoin as payment, but only dollars as payment with the third party conduit converting one's Bitcoin to dollars.
"Today, there are a number of billion dollar businesses that accept Bitcoin as a form of payment. These include Dell, Reddit, Expedia, PayPal, and most recently, Microsoft. So for the uninitiated who have not yet grasped what Bitcoin and other cryptocurrencies are, you ought to catch up." 
In other words, Hey haterslook at all these huge companies that are accepting bitcoin! How can you ignore that kind of support? 
Well, there's just one problem there: Almost none of the businesses mentioned above technically accept bitcoin. Instead, they partner with a middleman—generally either Coinbase or BitPay—who takes a customer's bitcoin, immediately converts it into cash, and then deposits the cash in the company's bank account. 
In other words, DellExpedia, Microsoft, and Time, Inc. don't actually "accept" bitcoins, per se. They accept U.S. dollars. It's their bitcoin processing partners who accept bitcoin. They, in turn, make money on transaction fees (in the case of Coinbase), or by selling their software and services as a subscription (in the case of BitPay). – Time Magazine
So what exactly does Bitcoin and other cryptocurrencies function as in the economy and in the market?  According to several Wall Street analysts who are now researching and monitoring the crypto sphere for their clients and brokerage houses, they have labelled Bitcoin as a speculative investment, but also something that has the power through the Blockchain to one day soon replace the entire financial structure of how businesses are financed, and how equities may be traded on Blockchain exchanges instead of in antiquated 'stock markets'.

In the end, Bitcoin and other cryptocurrencies have the potential to do many things in the financial system that gold and silver cannot do.  However, at this point in time these cryptos also do not perform in the same capacity that gold and silver do as wealth protection, and as a true representation of money.  So the bottom line is to treat each as they are rather than as we might want them to be, and invest accordingly in each in relation to the risks and attributes that are intrinsically tied to these individually unique asset classes.

Wednesday, July 19, 2017

New DOJ directive overrides state law to allow the police to seize property under civil forfeiture from anyone they see fit

The ideological 'War on Drugs' and 'War on Terror' have led to some of the most draconian violations of Constitutional rights since President Lincoln removed the right of Habeas Corpus during the Civil War, and President Wilson took over the country using the Overman Act in 1918.  And notwithstanding the introduction of a near total surveillance state through the Patriot Act, and the ability to arrest and detain anyone without due process via the NDAA, perhaps one of the more egregious violations of America's civil liberties is in the government's authority to be able to seize property without due process under what is known as Civil Forfeiture.

Civil Forfeiture is a law which allows both Federal and local officials to seize property simply on their suspicion of being tied to a crime, even if there is never any investigation, charge, indictment, or conviction.  And while civil forfeiture has up until now been primarily bound by a given state's choice to use its authority or not, on July 19 the Department of Justice (DOJ) issued a policy letter which allows law enforcement officials at all levels of the country to use civil forfeiture laws as they see fit, no matter if a state has the law currently on their books or not.

At every turn, “we the people” are getting swindled, cheated, conned, robbed, raided, pickpocketed, mugged, deceived, defrauded, double-crossed and fleeced by governmental and corporate shareholders of the American police state out to make a profit at taxpayer expense. 
President Trump has made it clear his loyalties lie with the police, Attorney General Jeff Sessions has previously declared his love for civil asset forfeiture, the Supreme Court keeps marching in lockstep with the police state, and the police unions don’t want their gravy train to go away, so there’s not much hope for federal reform anytime soon. As always, change will have to begin locally and move upwards. 
Some state legislatures (Florida, Michigan, Nebraska, New Mexico, and Ohio) are beginning to push back against these clearly unconstitutional asset forfeiture schemes. As the National Review reports, “New Mexico now requires a criminal conviction before law enforcement can seize property, while police in Florida must prove “beyond reasonable doubt” that property is linked to a crime before it’s seized.” 
And it is that pushback that has seemingly pushed the federal government to 'fix' the situation. As Reuters reports, the U.S. Justice Department announced on Wednesday that the federal government will reinstate a program that helps local and state law enforcement seize cash and other assets they suspect have been earned from crimes. 
Local police will now be able to seize cash, often from those suspected of drug crimes, even in states that do not condone the policy. 
Deputy Attorney General Rod Rosenstein told reporters that most seizures were warranted because the "vast majority" of people who have property taken by police do not contest it in court. 
"This is going to enable us to work with local police and our prosecutors to ensure that when assets are lawfully seized they are not returned to criminals," said Rosenstein at a media briefing at the Justice Department. 
The Obama administration had rolled back the policy in 2015, saying it incentivized police to take money from people who had committed crimes. 
Since former U.S. Attorney General Eric Holder weighed in on the issue in 2015, Justice Department agencies like the Drug Enforcement Administration has been barred from rewarding local police for taking possessions from people they stop. 
Now, the federal government will again be able to return up to 80 percent of the assets seized to local law enforcement. 
Rosenstein said the 2015 policy had a chilling effect on seizures by local law enforcement. 
Many states have civil asset forfeiture laws that allow the state government to redistribute money seized for programs like education. But the federal program returns cash directly to the police department that took the asset, allowing them to buy new equipment or as drug sniffing dogs. 
The Justice Department under President Donald Trump has made efforts to improve relationships with local and state law enforcement, which they viewed as damaged under the Obama administration. Rosenstein said that the president had heard from police who were concerned about the 2015 policy, but the administration was not acting to score political points with police unions that supported Trump's campaign. 
"This is not an effort to appease any particular constituency. It is an effort to empower law enforcement," Rosenstein said. 
The Police State's tentacles just reached a little further into your 'pocketbook' as what has become known as “policing for profit,” goes nationwide.. by federal law! 
DoJ's Full new asset forfeiture policy letter below (confirming police can sezie proeprty from people not charged with crimes even in states where it is banned)... - Zerohedge



The Daily Economist update for July 19 2017 - Petrodollar replacement platform now set


Sentiment among Wall Street analysts changing on gold as calls for a return in price to 2006 highs back on board

Even with another naked short contract dump/flash crash on July 19 by a bank, HFT Algo, or other source, it has not dissuaded gold's recent climbs back over its 200 day moving average of $1240.  And with the Fed suddenly shifting their rhetoric to a more Dovish direction regarding interest rates, sentiment among Wall Street analysts like Goldman Sachs are forecasting a return in gold prices to the highs we saw back in 2016.


The setup here is looking a lot like USDJPY. It tested/held two equality targets from the April/June at 1,215-1,205. This implies that the pullback was in fact corrective/not impulsive. Daily oscillators have diverged positively from the bottom of their recent range. The break above 1,236 further confirms that the market is now rising in an impulsive (and has room to continue). The next level to focus on is 1,249 (1.618 off the July low/ 100-dma). As long as pullbacks avoid overlap with the Jul. 12th high at 1,226, the underlying bias should remain in favor of higher levels. It’s also worth considering the notion that Gold may be in the (C) leg of an (ABC) pattern which began in Dec. ’16. If that’s the correct interpretation, the next leg higher could eventually continue up towards 1,378. How price action develops at ~1,296 (double highs from April/June) will likely be critical. 
Break of 1,236 opens an initial target at 1,249. Target/watch how price develops at 1,296. - Zerohedge

Tuesday, July 18, 2017

Russia's new connection with Shanghai Gold Exchange will facilitate replacing petrodollar with gold backed energy trading

Over the weekend there was a rather innocuous event that took place, and it did not receive much press in the Western world.  However Sberbank's acceptance onto the Shanghai Gold Exchange, and their beginning of direct gold trading in the world's largest physical gold market, means that the mechanism to replace the Petrodollar is now here, and it is very likely to be a worldwide gold backed system.

Russia’s largest bank, state-owned Sberbank, announced that its Swiss subsidiary had begun trading in Gold on the Shanghai Gold Exchange. 
Russian officials have signaled that they plan to conduct transactions with China using Gold as a means of marginalizing the power of the USD in bi-lateral trade between the 2 powerful nations. 
The formation of a BRICS Gold marketplace could bypass the US Petrodollar in bi-lateral trade in the energy sector. 
According to a report published by Reuters: “Sberbank was granted international membership of the Shanghai exchange in September last year and in July completed a pilot transaction with 200 kg of gold kilobars sold to local financial institutions, the bank said. 
Sberbank plans to expand its presence on the Chinese precious metals market and anticipates total delivery of 5-6 tonnes of Gold to China in the remaining months of Y 2017. 
Gold bars will be delivered directly to the official importers in China as well as through the exchange, Sberbank said.” 
Notably, Russia’s 2nd-largest bank VTB is also a member of the Shanghai Gold Exchange. 
There is a transformation underway of the global monetary system.The implications of this transformation are profound for US policy in the Middle East, which for nearly 50 years has been underpinned by its strategic relationship with Saudi Arabia. 
The USD was established as the global reserve currency in Y 1944 with the Bretton Woods agreement, commonly referred to as the Gold Standard. The US leveraged itself into this power position by holding the largest reserve of Gold in the world. The “Buck” was pegged at $35 oz, and freely exchangeable into Gold. 
By the 1960’s, a surplus of USDs caused by foreign aid, military spending, and foreign investment threatened this system, as the US did not have enough Gold to cover the volume of Buck in worldwide circulation at the rate of $35 oz, the result was and overvalued USD. 
America temporarily embraced a new paradigm in Y 1971, as USD became a pure fiat (paper) currency decoupled from any physical store of value sans the GDP of the US, until the petrodollar agreement was concluded by President Nixon in Y 1973. 
The quid pro quo was that Saudi Arabia would denominate all Crude Oil trades in USDs, and in return, the US would agree to sell Saudi Arabia military hardware and guarantee the defense of The Kingdom. 
A report by the Centre for Research on Globalization clarifies the implications of these most recent moves by the Russians and the Chinese in an ongoing drive to replace the US petrodollar as the global reserve currency.
In March of Y 2017 the Russian Central Bank opened its 1st overseas office in Beijing as an early step in phasing in a Gold-backed standard of trade. This would be done by finalizing the issuance of the 1st federal loan bonds denominated in RMB Yuan and to allow Gold imports from Russia. – Live Trading News
The facilitation of a replacement to the Petrodollar system appears to have been the primary reason why both Russia and China have been accumulating gold in vast quantities over the past five years.  And with the world awash in record debt and devaluing fiat currencies, backing oil, which is the real currency of international trade, with gold will be the final nail in the coffin for dollar hegemony, and shift the balance of financial power away from the West, and into the hands of the newly emerging economic superpowers of Eurasia and the Far East.

Citizens in Italy rebel against their central bank by printing their own Euro currencies for use in commerce

One of the most important functions of a central bank is to ensure there is enough currency in an economy to support the needs of consumers.  However, with the advent of austerity in many Southern European nations following the 2008 financial crisis, governments have been culling payments and currency to their citizens in order to pay off sovereign debt, and this has led groups of people in at least two countries to create their own currencies to use as barter or as money.

In Greece, where austerity has nearly impoverished the entire nation, the people have turned to a barter script known as the Tem.

“Money is sparse right now, but people still have the same skills and knowledge they had before the crisis,” said Christos Papaioannou, part of a cooperative that founded TEM in the port city of Volos and one of nearly 1,000 registered users of the alternate currency there. 
TEM—a sophisticated form of barter whose name is the Greek acronym for Local Alternative Unit—was founded in 2010 in the early months of Greece’s debt crisis with less than a dozen members. 
Now it includes dozens of participating local businesses that use the system to sell goods and services, including prepared food, haircuts, doctor visits, or even for renting an apartment. - Sigma Live
However in Italy the people have taken the creation of a simple barter currency to a much greater level as they are now printing counterfeit 'Euros' and seeking to expand their use in their domestic economy in violation of EU rules regarding currencies.

Because the top cryptocurrencies, Bitcoin and Ethereum are open source, any one can create their own cryptocurrencies. While the proliferation of cryptocurrencies has central banks concerened, another more insidious and perhaps greater threat to central banks’ monopoly on money creation is the issuance of scriptural euros by citizens. 
What are Scriptural Euros? 
Scriptural Euros are Euros issued by citizens under a “theory of the autonomous creation of scriptural currency” based on the idea of collective property of money that affirms the right of every citizen to autonomously create “scriptural” money (Euros) via their own accounting records. The thoery of autonomous creation of scriptural currency holds that just as banks can conjure debt based money out of thin air, so can citizens. Money thus created by citizens can then be used to extinguish their own debts. 
Apparently, citizen created euros have been accepted as payment. @marcosabait (Marco Saba) shared his experience on twitter whereby his scriptural Euros were accepted by Facebook as payment for advertising. This correspondence between @marcosabait and Facebook shows how @marcosabait created 25 Euros as payment to Facebook and Facebook accepted the citizen issued Euros as payment. 
According to @marcosabait, Italian citizens have created more than 1 billion scriptural Euros since October 2016. - Smaulgld
The rise of decentralized currency is in large part a microcosm of the failures of governments and central banks, and where this rebellion by individuals is intrinsically tied to their governments protecting the banks and financial centers over the needs of the people.  And rather than trying to criminalize those who create private mediums of exchange in order to conduct localized commerce, sovereign entities may need to capitulate with their citizens otherwise their rebellion against the current monetary system may turn much more violent, and become more focused against the government itself, and the bankers who helped create the environments they are stuck in now.

Monday, July 17, 2017

The Daily Economist update for 17 July 2017 - Has the cryptocurrency bubble burst?



Gold continues move back up to $1250 as dollar falls to 10 month lows

On July 17 gold is opening higher in the markets, and is looking to close positive for the 4th time in the past 5 trading sessions.

Rising back above $1230 in early morning trading, the short-term outlook for the precious metal appears to be a return back to the $1250 level as the dollar continues to fall towards 94 on the index, and its lowest level in the past 10 months.

Gold climbed on Monday and was likely to see further gains after the dollar slumped to multi-month lows on the back of data that pointed to weak U.S. inflation and less prospect of rate hikes. 
"The dollar continues to be on the back foot and yields have dropped back somewhat from their relatively elevated positioning lately," said analyst Jonathan Butler at Mitsubishi in London. 
Spot gold was up 0.5 percent at $1,234.59 per ounce at 1200 GMT while U.S. gold futures for August delivery rose 0.5 percent to $1,233.90 per ounce. 
"If gold remains at $1,230 or goes higher, there's an elevated risk that some of those short positions might start to be reversed and that would give some further upside to gold," Butler added. 
Recent soft U.S. inflation and domestic demand figures undermined arguments for the U.S. Federal Reserve to raise interest rates, with traders cutting back their bets on the likelihood of an increase in December. 
The U.S. dollar nursed losses at a 10-month low against a basket of currencies on Monday as investors cheered upbeat Chinese data by piling into leveraged positions such as the Australian dollar and other high-yielding currencies. 
A weaker greenback supports gold since the dollar-priced commodity is less expensive for investors holding other currencies. – Reuters