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Gold prices slide on hawkish Fed, silver price under $17

Gold prices dropped during Thursday morning sessions following comments from the FOMC yesterday, which diminished the yellow metals status as a safe haven.

The spot gold price was last at a session low of $1,203.50 per ounce a 0.7 percent or $8.9 loss on the previous day’s close.

The Fed, as expected, will conclude its asset purchase programme (QE3) this month. The debate now turns to when will be the right time to raise interest rates, which have been near zero since December 2008. Before yesterday’s release, the market consensus was that the first increase will happen sometime in the middle of 2015.

But the tone of FOMC statement was quite optimistic. The committee said that there has been a “substantial improvement” in the outlook for the labor market since the inception of QE3, while the underutilization of labor resources is “gradually diminishing”.

The dollar gained against the euro on the news, with the euro last at $1.2588, having been above $1.27 prior to the comments.

The data agenda is busy today, from the EU there is Spanish flash CPI, Spanish flash GDP and German unemployment claims. From the US, advanced GDP, unemployment claims, advanced GDP price index, while Fed chair Janet Yellen is also set to speak.

“We think the next shoe to drop as far as gold is concerned will come on Thursday when US GDP numbers for Q3 will be released,” said INTL FCSTone analyst Edward Meir. “If the number comes in higher than three percent, as we suspect it will, we would

Article source: http://www.bulliondesk.com/gold-news/bullion-latest-gold-prices-slide-hawkish-fed-silver-price-under-17-84239/

If you’re determined to go to college, you might as well do it for free (or nearly free)

From Mike “Mish” Shedlock at Global Economic Trend Analysis:

On June 7, 2014, I wrote “Looking to Drastically Reduce College Costs? Study Abroad!

Yesterday, a writer for the Washington Post expressed the same opinion.

Please consider “7 countries where Americans can study at universities, in English, for free (or almost free)“:

Since 1985, U.S. college costs have surged by about 500 percent, and tuition fees keep rising. In Germany, they’ve done the opposite.

The country’s universities have been tuition-free since the beginning of October, when Lower Saxony became the last state to scrap the fees. Tuition rates were always low in Germany, but now the German government fully funds the education of its citizens — and even of foreigners.

What might interest potential university students in the United States is that Germany offers some programs in English — and it’s not the only country. Let’s take a look at the surprising — and very cheap — alternatives to pricey American college degrees.

Germany

Americans can earn a German undergraduate or graduate degree without speaking a word of German and without having to pay a single dollar of tuition fees: About 900 undergraduate or graduate degrees are offered exclusively in English, with courses ranging from engineering to social sciences.

Finland

This northern European country charges no tuition fees, and it offers a large number of university programs in English. However, the Finnish government amiably reminds interested foreigners that they “are expected to independently cover all everyday

Article source: http://thecrux.com/if-youre-dead-set-on-going-to-college-do-this-and-save-a-fortune/

Forget the Federal Reserve’s quantitative easing… Japan just made it look like child’s play

From Zero Hedge:

Still confused what the BOJ’s shocking move was about, aside from pushing the U.S. stock market to a new record high of course? This should explain it all…

As the chart below shows, as a result of the BOJ’s stated intention to buy 8 trillion to 12 trillion yen ($108 billion) of Japanese government bonds per month, it means the BOJ will now soak up all of the 10 trillion yen in new bonds that the Ministry of Finance sells in the market each month.

In other words, the Bank of Japan’s expansion of record stimulus today may see it buy every new bond the government issues.

This is what full monetization looks like…

More from Bloomberg:

The central bank is already the largest single holder of Japan’s bonds, and the scale of its buying could fuel concerns it is underwriting deficits of a nation with the heaviest debt burden. The BOJ could end up owning half of the JGB market by as early as in 2018, according to Takuji Okubo, chief economist at Japan Macro Advisors in Tokyo. 

“Kuroda knows when to go ALL in,” Okubo wrote in a note. “The BOJ is basically declaring that Japan will need to fix its long-term problems by 2018, or risk becoming a failed nation.”

The unprecedented efforts to stoke inflation could scare bond investors, said Chotaro Morita, the chief rates strategist in Tokyo at SMBC Nikko Securities Inc.

Kuroda said

Article source: http://thecrux.com/what-todays-big-news-from-japan-really-means/

Friday, October 31: Today in Gold and Silver

NEW YORK (
TheStreet) — The gold price wasn’t allowed to do much in early Far East trading on their Thursday—and developed a negative bias around 1 p.m. Hong Kong time—and by the time JPMorgan
et al were through, with the low tick coming at 11:30 a.m. EDT, they had gold down around fifteen bucks from it’s Thursday close.  It recovered a few dollars off that low by noon, but then chopped sideways for the remainder of New York trading session.

The high and low tick were recorded as $1,216.50 and $1,195.50 in the December contract.

Gold closed yesterday at $1,198.80 spot, down $12.80 from Thursday’s close.  Net volume was very high at 195,000 contracts.

The silver price didn’t do much in Far East trading up until shortly before 2 p.m. Hong Kong time.  At that point the HFT boyz and their algorithms showed up—and the rest, was they say, was history.  The low tick was in at 11:15 a.m. EDT—and from there it bounced off that low a few times before rallying a bit.  After 12:30 p.m., the price chopped sideways in a tight range until the 5:15 p.m. EDT close of electronic trading.

The high and low in silver were reported as $17.205 and $16.33 in the December contract, which was an intraday move of a hair over 5 percent.

Silver finished the Thursday session at $16.46 spot, down 63 cents from

Article source: http://www.thestreet.com/story/12935723/1/friday-october-31-today-in-gold-and-silver.html

PRECIOUS-Gold, silver sink to 2010 lows on rocketing dollar


* Dollar highest since June 2010

* SPDR holdings drop to six-year low

* US retail gold, silver coin demand pick up

(Updates to add graphic, prices)

By Frank Tang and Clara Denina

NEW YORK/LONDON, Oct 31 (Reuters) – Gold and silver sank to
their lowest since 2010 on Friday as the dollar surged against
the yen and other major currencies after the Bank of Japan
shocked global financial markets by expanding its massive
stimulus spending.

Spot gold broke below $1,180 an ounce, a level bullion had
held twice during its last two major sell-offs in June and
December last year. It also briefly held the mark earlier this
month until Friday’s drop.

The yen plunged to a near seven-year low against the U.S.
dollar on Friday, putting it on track for its worst day in 18
months, after the Bank of Japan shocked financial markets with
an aggressive easing of its monetary policy.

“The main reason for gold’s fall is the strength in the
dollar after the BOJ’s desperate efforts to weaken the yen,”
said Jeffrey Sica, president and chief investment officer at
Sica Wealth Management, which oversees $1 billion in client
assets.

“Gold could fall further in the short term as the dollar
could rise more in the short term, but gold should eventually
benefit as a hedge against the uncertainties and economic
turmoil brought by central-bank actions,” Sica said.

Spot gold slid as much as 3 percent to its lowest
since July

Article source: http://www.reuters.com/article/2014/10/31/markets-precious-idUSL4N0SQ61F20141031

Here’s the "secret" to a free college education

From Mike “Mish” Shedlock at Global Economic Trend Analysis:

On June 7, 2014, I wrote “Looking to Drastically Reduce College Costs? Study Abroad!

Yesterday, a writer for the Washington Post expressed the same opinion.

Please consider “7 countries where Americans can study at universities, in English, for free (or almost free)“:

Since 1985, U.S. college costs have surged by about 500 percent, and tuition fees keep rising. In Germany, they’ve done the opposite.

The country’s universities have been tuition-free since the beginning of October, when Lower Saxony became the last state to scrap the fees. Tuition rates were always low in Germany, but now the German government fully funds the education of its citizens — and even of foreigners.

What might interest potential university students in the United States is that Germany offers some programs in English — and it’s not the only country. Let’s take a look at the surprising — and very cheap — alternatives to pricey American college degrees.

Germany

Americans can earn a German undergraduate or graduate degree without speaking a word of German and without having to pay a single dollar of tuition fees: About 900 undergraduate or graduate degrees are offered exclusively in English, with courses ranging from engineering to social sciences.

Finland

This northern European country charges no tuition fees, and it offers a large number of university programs in English. However, the Finnish government amiably reminds interested foreigners that they “are expected to independently cover all everyday

Article source: http://thecrux.com/if-youre-dead-set-on-going-to-college-do-this-and-save-a-fortune/

Must-see: How sugar really affects your brain

From Shane Parrish at Farnam Street: 

When you eat something loaded with sugar, your taste buds, your gut, and your brain all take notice. This activation of your reward system is not unlike how bodies process addictive substances such as alcohol or nicotine — an overload of sugar spikes dopamine levels and leaves you craving more. Nicole Avena explains why sweets and treats should be enjoyed in moderation.

Still curious? Here are some additional resources to explore.

Sugar Cravings“: How sugar cravings sabotage your health, hormone balance, and weight loss, by Dr. Nicole Avena and Dr. Sara Gottfried.

Why We Get Fat: Gary Taubes lays out a coherent argument against “calories in, calories out.”

The Science of Addictive Food“: How food manufacturers tweak products to increase their addictive nature.

Coevolution and Artificial Selection“: “For a great many species today, ‘fitness’ means the ability to get along in a world in which humankind has become the most powerful evolutionary force.”

America’s Food Crisis: The Omnivore’s Dilemma — Perhaps the best food politics book ever written, certainly the best one I’ve ever read. Two good places to follow up are: food as culture and the politics of food.

Ancient Wisdom For Lifelong Health — the most interesting part of this for me was the biological response to fasting and how that actually can help us fight infections.

Mindless Eating: “While most Americans stop

Article source: http://thecrux.com/short-video-explains-what-sugar-really-does-to-your-health/

Gold and Silver Touch Four-year Lows as Dollar Moves Higher

Gold and Silver Touch Four-year Lows as Dollar Moves HigherPrecious metals investors looking for a bright spot in the market were disappointed again today. On the back of the US dollar hitting a four-year high, gold and silver hit their lowest prices since 2010. 

The yellow metal dipped below the key support level of $1,200 on Thursday, but the fall continued Friday as gold dropped 3 percent to hit $1,161.25. That’s it’s lowest price since July 2010, according to Reuters. The metal was trading down 2.8 percent, at $1,164.64, at 13:44 GMT.

Spot silver followed those losses, touching as low as $15.76 an ounce. The metal was down 3.1 percent, at $15.92, during Friday trading hours.

Strong dollar, surprise move from Japan

Driving those losses was the strength of the US dollar and the Federal Reserve’s decision to end asset purchases this week, but a surprise move by the Bank of Japan to increase stimulus also came into play. According to Bloomberg, the bank “raised its annual target for enlarging the monetary base to 80 trillion yen ($723 billion), up from 60 to 70 trillion yen,” and that drove the currency to its lowest level in six years.

Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, told the news outlet, “Japan basically pushed gold over the edge as it triggered a

Article source: http://goldinvestingnews.com/46883/gold-price-silver-price-4-year-low-federal-reserve-us-dollar-gains-japan-china.html

Gold and Silver Touch Four-year Lows as Dollar Moves Higher

Gold and Silver Touch Four-year Lows as Dollar Moves HigherPrecious metals investors looking for a bright spot in the market were disappointed again today. On the back of the US dollar hitting a four-year high, gold and silver hit their lowest prices since 2010. 

The yellow metal dipped below the key support level of $1,200 on Thursday, but the fall continued Friday as gold dropped 3 percent to hit $1,161.25. That’s it’s lowest price since July 2010, according to Reuters. The metal was trading down 2.8 percent, at $1,164.64, at 13:44 GMT.

Spot silver followed those losses, touching as low as $15.76 an ounce. The metal was down 3.1 percent, at $15.92, during Friday trading hours.

Strong dollar, surprise move from Japan

Driving those losses was the strength of the US dollar and the Federal Reserve’s decision to end asset purchases this week, but a surprise move by the Bank of Japan to increase stimulus also came into play. According to Bloomberg, the bank “raised its annual target for enlarging the monetary base to 80 trillion yen ($723 billion), up from 60 to 70 trillion yen,” and that drove the currency to its lowest level in six years.

Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, told the news outlet, “Japan basically pushed gold over the edge as it triggered a

Article source: http://goldinvestingnews.com/46883/gold-price-silver-price-4-year-low-federal-reserve-us-dollar-gains-japan-china.html

Gold Tumbles With Silver to Lowest Since 2010 on Dollar

(Corrects settlement price in fourth paragraph.)

Gold and silver slumped to the lowest since 2010 as the dollar strengthened after the Bank of Japan unexpectedly boosted stimulus and the Federal Reserve ended asset purchases this week.

The Fed is weighing the timing of interest-rate increases as other central banks add to stimulus to bolster their economies. The Bank of Japan today raised its annual target for enlarging the monetary base to 80 trillion yen ($723 billion), up from 60 trillion to 70 trillion, sending the yen to a six-year low against the dollar. Gold yesterday erased the year’s advance after U.S. gross domestic product beat estimates.

“Japan basically pushed gold over the edge as it triggered a major risk-on move,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said by e-mail today. Japanese stimulus, the Fed decision to stop bond buying and dollar strength have “been more than the market could cope with this week,” he said.

Gold futures for December delivery fell 2.3 percent to $1,171.60 an ounce at 1:50 p.m. on the Comex in New York, after touching $1,160.50, the lowest for a most-active contract since July 2010. Silver futures for the same delivery month dropped as much as 4.8 percent to $15.635, the lowest since February 2010.

Gold dropped 4.9 percent this week, the most since September 2013. The metal also declined 3.3 percent in October to post consecutive monthly losses for the first time this year. Prices have

Article source: http://www.bloomberg.com/news/2014-10-31/gold-set-for-second-monthly-loss-on-double-whammy-from-fed-data.html