Quote of the Day:
"The market attitude towards gold for most of January could be summed up in two words: cautious optimism. Investors were reluctant to add to positions aggressively as memories of the disappointment in Q4 lingered... A fresh catalyst was needed and we think the FOMC outcome on Wednesday fit the bill. More accommodative policy is a very good foundation for gold to build on the next move higher."
~ UBS from "Gold set for biggest rise in three months after Fed"
Observations - Statistics - Commentary
Gold Bulls Ascendant Amid Biggest Rally Since 1980
BusinessWeek
Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve's pledge to keep interest rates low until late 2014 will extend the metal's best start to a year in more than three decades.
http://jlne.ws/wnXOW1
Commodities inflows at a nine-year low
By Emiko Terazono - Financial Times
Commodities markets saw the weakest net inflow of funds in nine-years in 2011, as investors were deterred by volatility caused by European sovereign debt concerns, as well as worries over global economic growth and monetary tightening in China.
http://jlne.ws/wvE6kn
Resource Corruption Fight Intensifies
By Andrea Hotter - WSJ
The days of shady deals in the mining, oil or gas industries will be a thing of the past if Transparency International has its way. The global civil society organization is piling the pressure on corporates and governments alike to sign up to practises it believes will help eradicate the corruption that the organisation’s chair calls the “resources curse.”
http://jlne.ws/z7zFTb
| JLN Metals Scorecard | 1/26/2012 |
| NYSE LIFFE US Total Volume | 118,933 |
| 100 oz. Gold Futures Volumes | |
| NYSE LIFFE US | 777 |
| CME/NYMEX (Globex + PNT) | 311,747 |
| CME/NYMEX Open Auction | 16,901 |
| NYSE LIFFE market share | 0.25% |
| NYSE LIFFE US Electronic market share | 0.25% |
| 100 oz. Gold Futures Open Interest | |
| CME/NYMEX | 433,710 |
| NYSE LIFFE US | 1721 |
| NYSE LIFFE US market share | 0.40% |
| Mini Gold Volume | |
| NYSE LIFFE US | 7,775 |
| CME E-micro Gold (10 Troy oz) | 1,739 |
| CME/NYMEX miNY | 879 |
| NYSE Liffe market share (Contracts) | 74.81% |
| NYSE Liffe market share (Notional) | 80.80% |
| 5,000 oz. Silver Futures Volume | |
| NYSE LIFFE US | 18 |
| CME/NYMEX | 38,268 |
| NYSE LIFFE US market share | 0.05% |
| Mini Silver Volume | |
| NYSE LIFFE US | 2,880 |
| CME/NYMEX miNY | 148 |
| CME/NYMEX E-mini | 0 |
| NYSE LIFFE US market share | 95.11% |
| Additional Metal Futures Volume statistics | |
| EUREX Gold Futures (100 troy ounces) | 15 |
| TOCOM Gold Futures* (1 kg / 32.15 ounces) | 60,908 |
| TOCOM Mini Gold Futures* (100 grams / 3.215 ounces) | 14,517 |
| TOCOM Silver Futures* (10 kg / 321.51 ounces) | 710 |
| MCX India* (1 kg / 32.15 ounces) | 43,882 |
| Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg) | 1,187 |
| *Today's date |
| METAL ETFS | METAL ETFS |
| ProShares Ultra Silver | 470,892 |
| Powershares DB Base Metals Fund | 11,223 |
| Market Vectors Gold Miners GG | 3,860,060 |
| MARKET VECTORS JUNIOR | 1,239,202 |
| ProShares UltraShort Gold | 217,373 |
| ETFS Precious Metals Baskets Trust | 6,460 |
| iShares COMEX Gold Trust | 993,572 |
| iShares Silver Trust (ETF) historical prices | 3,941,077 |
| ETFS PHSYICAL PALLADIUM SHARES | 22,126 |
| ETFS PHYSICAL PLATINUM SHARES | 36,341 |
| ETFS GOLD TRUST | 15,541 |
| ETFS SILVER TRUST | 86,415 |
| Market Vectors Steel | 24,114 |
| ProShares Ultra Gold | 87,606 |
| ProShares UltraShort Silver | 1,715,707 |
| SPDR Gold Trust | 4,747,747 |
Lead Stories
Video - Gold Regains Some of Its Shine
By Francesca Freeman - WSJ
After a relatively appalling performance in the latter part of last year, gold has picked up its feet. Peaking at a seven-week high of $1,730.95 a troy ounce Thursday, the yellow metal has gained around 10% so far in January as investors regain their confidence in bullion.
http://jlne.ws/wuRgRC
CEO's 'Name On The Line' With Formation Of McEwen Mining; Goals Include S&P 500
By Allen Sykora - Kitco News
Rob McEwen certainly has plenty of motivation to build up the mining company that carries his name and started trading on the New York and Toronto stock exchanges Friday.
http://jlne.ws/yzhtK1
Greece and the euro: An economy crumbles
The Economist
The banners at the entrance to the Bank of Greece museum in Athens promise a “fascinating journey through Greece’s modern economic and monetary history”. How could any passer-by resist? Inside the museum ranks of glass cases enclose an array of coins and old bank notes, as well as the paraphernalia used to make them. The bills range from 5 drachma up to 100m drachma, a reminder that Greece has had problems with inflation in the past.
http://jlne.ws/wmx94R
Gold set for biggest rise in three months after Fed
By Jan Harvey - Reuters
Gold rose on Friday, heading for its best weekly performance since late October after the Federal Reserve signalled its ultra-loose monetary policy would continue, keeping the dollar under pressure and the opportunity cost of holding bullion low.
http://jlne.ws/wt67ln
Futures & ETF News
Gold ETFs Surge On Fed Outlook - ETF News And Commentary
Nasdaq
Although the American economy seems to be holding its own to start the year, significant risks remain to growth. European worries are always a step away and still high American unemployment and
http://jlne.ws/w1qIaO
ETF Fund Flows: GLD Nets $481.1 Million
Nasdaq
Investors poured $481.1 million into the SPDR Gold Shares ETF (NYSEArca:GLD) in the wake of the Fed's decision to extend its easy-money policies until 2014.
http://jlne.ws/y4hPrr
Toyota's Hybrid Tech May Pressure Rare Earth ETF
ETF Trends via Yahoo! Finance
Rare earth metals, along with the related exchange traded fund, have been in the news in recent years due to supply concerns. However, the sub-sector has been a weak performer, and now Toyota (NYSE: TM - News) ...
http://jlne.ws/xpNP6R
Iron ore swaps extend gains ahead of China`s return
Mineweb
Iron ore forward swaps extended gains early Friday, reflecting hopes that spot prices will bounce back when China returns next week from its Lunar New Year break.
http://jlne.ws/xVZTBW
Investments
Gartman: Starting To Turn Neutral On Gold
Nasdaq
Dennis Gartman, the macro trader and editor of the Gartman Letter, is looking at rising equity prices and slowly turning neutral on gold. During a panel on the macroeconomy at...
http://jlne.ws/x0QSyb
Video - Investors Abandoning Copper, Cotton, Crude and other Commodities Amid Plunging Prices
WSJ
Amid plunging prices and soaring volatility, investors and traders reduced bets on 13 key commodity contracts by 19% in 2011. Jerry DiColo reports on Markets Hub.
http://jlne.ws/zNGmD4
Barclays: Tin increase 17% and zinc by 18% so far in 2012
Commodity Online
Tin’s fundamental backdrop offers solid support for its strong showing relative to most other base metals so far this year, said Barclays Capital in a research note.
http://jlne.ws/yW0dl7
Production News
US aluminium export increases 10% in 2011: USGS
Commodity Online
The United States continued to be slightly reliant upon Aluminium imports in 2011, as domestic primary production increased from that in 2010 but still remained at significantly lower levels than in 2008, although exports of scrap continued to increase, said the Institute U.S. Geological Survey (USGS) in a research note.
http://jlne.ws/zlSExa
Reports, Macroeconomics & Inflation
Tensions rise over eurozone firewall
Financial Times
Fresh signs of tension between France and Germany over the eurozone rescue emerged on Friday, as expectations rise that a deal to restructure Greece’s sovereign debt could be agreed as early as this weekend.
http://jlne.ws/yVoKTb
Fitch Cuts Italian, Spanish Ratings by Two Notches
By Mark Deen - Bloomberg
Fitch Ratings cut the credit ratings of Italy, Spain and three other euro-area countries, saying they lack financing flexibility in the face of the regional debt crisis.
http://jlne.ws/znSgT4
Emergency loans helped avert ‘major, major credit crunch’
By Ralph Atkins and Patrick Jenkins - Financial Times
Europe avoided a “major, major credit crunch” thanks to €489bn of emergency three-year loans to eurozone banks provided by the European Central Bank last month, the bank’s governor said on Friday.
http://jlne.ws/yGMvls
Euro zone may need to help Greece more: Juncker in paper
Reuters via Yahoo! Finance
Euro zone members may have to increase their financial support for Greece if Athens and the private sector do their part to address the country's debt crisis, Eurogroup head Jean-Claude Juncker told a ...
http://jlne.ws/wEk2hw
Greece Edges Towards Debt Deal
By ALKMAN GRANITSAS And COSTAS PARIS - WSJ
Talks between Greece and its private sector creditors over a €100 billion ($131 billion) debt write-down edged towards an agreement, with bond holders seemingly willing to accept lower yields on their future holdings of Greek debt, a source close to the talks said Friday.
http://jlne.ws/zfs8ZU
Investors cue up Portugal as the next Greece
By Emelia Sithole-Matarise and Anirban Nag - Reuters
Investors are betting that after cap-in-hand Greece comes Portugal, selling off its stocks and bonds in the belief that the euro zone laggard cannot avoid a default without a second bailout.
http://jlne.ws/zADr9Z
Physicals & Company News
Rio Tinto Eyes Oyu Tolgoi Control
By Robb M. Stewart - WSJ
Rio Tinto expects to replace some directors and management at Ivanhoe Mines after grabbing majority control of the Canadian mining company, and may seek direct ownership in the massive Oyu Tolgoi copper and gold project in Mongolia.
http://jlne.ws/w5V6SM
RUSAL may cut aluminium output 6% in next 18 months
Mineweb
Despite reporting last week that it had no plans to follow rival Alcoa's lead in cutting production, the Russian firm said Friday it could cut output by 6% in the next 18 months.
http://jlne.ws/ysIffg
