Temporary suspension of trading KVTs on the Kinesis Exchange

Temporary suspension of trading KVTs on the Kinesis Exchange

At Kinesis, we strive to deliver value to our clients, and Kinesis Velocity Token (KVT) holders. The value of KVTs, as outlined in our blueprint, is derived from a fully operational product suite, designed to deliver yields based on transaction fees and velocity.

Velocity is key to the success of the Kinesis Monetary System, and we have taken the position to preserve the value of the KVT until we deliver our current product road-map, which will also be made public shortly. This includes the Kinesis debit card, additional currency pairs (including BTC pairs), mobile applications and merchant integrations, which are envisaged to be primary drivers of velocity.

Therefore, trading of the KVT on the Kinesis Exchange, has now been suspended, effective immediately, until these integral pieces of the Kinesis Monetary System have been released. Please note all open KVT orders will now be cancelled.

This is a temporary suspension of KVT trading on the exchange and we will re-list them once we have met the objectives above.

Deposit and withdrawal functionality for KVT in your KMS account will remain active, meaning you can still access your KVT holdings and store them in your KMS account if you wish.

This temporary suspension has been put in place to protect KVT holders and the value of the tokens. This is a commercial decision which has been made in an evolving landscape, to protect all participants, and to align our products for delivery of the Kinesis Monetary System.

We thank you for your ongoing support of the Kinesis Monetary System.

For regular progress updates tune in to our Live from the vault episodes, filmed every two weeks. These are designed to keep our community abreast of all initiatives, developments and product releases.

Bitcoin versus gold you need THIS during outbreaks like coronavirus – analyst

Bitcoin versus gold, you need THIS during outbreaks like coronavirus – analyst

Bitcoin has risen 48% since the start of 2020, far outperforming gold, and this may be due in part to the coronavirus, said Clem Chambers of Investorshub.com, who considers the largest cryptocurrency to be the “flight asset of choice”.

“Bitcoin is now proven to be of use, because you can buy it and turn it into fiat very, very quickly and very, very easily international. So, if you had to make plans quickly, as a lot of people in Asia I’m sure are worried about being kettled in their cities, not just in China, you’d want to have the ability to take $100,000, $200,000, a million five million dollars worth of assets abroad with you,” Chambers told Kitco News

 

 

Gold silver prices gain as coronavirus outbreak escalates

Gold, silver prices gain as coronavirus outbreak escalates

Gold and silver prices are moderately higher in midday U.S. futures trading Thursday. Some risk aversion is back in the marketplace late this week, as the coronavirus outbreak has escalated in China. February gold futures were last up $7.00 an ounce at 1,578.60. March Comex silver prices were last up $0.118 at $17.61 an ounce.

New cases of coronavirus increased markedly Thursday in China's Hubei province. There were over 14,800 new cases were reported Thursday in contrast to around 2,000 new cases reported Wednesday. Reports said there were around 240 new deaths in the region. Chinese health officials also widened their definition used to confirm cases. More than 1,300 people have died from the epidemic and the total number of afflicted in the Hubei province stands at over 48,200. The World Health Organization warned the recent reports about the slowdown in the spread of the virus should be treated with “extreme caution.” “This outbreak could still go in any direction,” the WHO said, regarding the status of the outbreak.

China’s businesses are being seriously impacted. There are reports of impending steel shortages and other supply chain disruptions. Auto sales in China are reported down around 20%. Global crude oil demand in the first quarter of this year is forecast to hit the slowest rate of growth in 10 years amid the coronavirus outbreak, according to the International Energy Agency. The IEA said “there is already a major slowdown in oil consumption and the wider economy in China.”

The ebb and flow of this matter as it relates to the marketplace continues—shifting between the front burner and the back burner of the marketplace on any given trading day.

The key outside markets today see crude oil prices firmer and trading around $51.50 a barrel. Meantime, the U.S. dollar index is slightly up in early U.S. trading and not far below this week’s multi-month high.

Technically, April gold futures bulls have the comfortable overall near-term technical advantage. However, they need to show more power to restart a three-month-old price uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,598.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,542.80. First resistance is seen at today’s high of $1,581.70 and then at $1,590.00. First support is seen at today’s low of $1,568.50 and then at this week’s low of $1,564.40. Wyckoff's Market Rating: 6.5

March silver futures bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at this week’s high of $17.825 and then at $18.00. Next support is seen at this week’s low of $17.435 and then at the January low of $17.28. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed up 150 points at 261.45 cents today. Prices closed nearer the session high and hit a three-week high today. The copper bears still have the overall near-term technical advantage. However, recent upside price action now suggests a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 248.75 cents. First resistance is seen at today’s high of 262.75 cents and then at 265.00 cents. First support is seen at today’s low of 258.15 cents and then at 255.55 cents. Wyckoff's Market Rating: 3.0.

 

By Jim Wyckoff

For Kitco News

There is no fear in the markets but there should be here’s why

There is no fear in the markets, but there should be, here’s why

-The market is already veering towards a recession, but stock markets are not responding accordingly, this according to Todd “Bubba” Horwitz of BubbaTrading.com.

“I think, we’re in the early stages of a recession,” Horwitz told Kitco News. “cheap money continues to fuel the markets.”

Gold and silver will both eventually move much higher, but in the short-term, metals will follow their trajectory, meaning gold will move higher and silver will lag, Horwitz said.

“Right now, silver is in a short-term downtrend…both gold and silver spiked to highs and since then, they’ve both come down. The difference is gold found some support around $1,560 April futures but is holding, and silver is continuing that downward trajectory,” he said.

Horwitz added that once the gold-silver widens, it would present a good opportunity for traders to buy silver.

“I think gold, I’m looking for $1,600 first, but I’m pretty confident that the $1,630 high that was made on that spike high will be taken out and then that will probably be a near-term top here,” he said.

 

By Kitco News
Wednesday February 12, 2020 19:34

Gold slips as stronger dollar risk-on sentiment weighs

Gold slips as stronger dollar, risk-on sentiment weighs

* Dollar index at four-month peak

* Global share markets hit record highs

 Gold prices dipped on Tuesday as the dollar held firm and investors opted for riskier assets after a fall in the number of new confirmed cases of coronavirus in China eased some of fears over global economic impact.

Spot gold was down 0.3% at $1,567.26 per ounce by 1:43 p.m. EST (1843 GMT), having touched its highest since Feb. 4 at $1,576.76 on Monday.

U.S. gold futures settled down 0.6% at $1,570.10 an ounce.

“Gold is slightly down in tandem with another round of new highs across the board in equity markets, as there has been some conversation that the impacts from coronavirus are slightly overdone,” said David Meger, director of metals trading at High Ridge Futures.

However, “dips in gold are still being fairly bought very readily … given the strength seen in global equities and the fact that gold continues to hold up so well.”

Global financial markets scaled new highs as the number of new coronavirus cases slowed in China and the country’s factories slowly returned to work.

After more than 1,000 deaths, the China’s foremost medical adviser on the epidemic said infections may be over by April, with the number of new cases already declining in some places.

Further limiting gold’s appeal, the dollar hit a four-month high against a basket of rivals on safety buying and Federal Reserve Chair Jerome Powell’s upbeat view of the U.S. economy.

The U.S. central bank kept benchmark interest rates unchanged at its January policy meeting, citing moderate economic growth and a strong jobs market.

But in testimony before a U.S. congressional committee, Powell cited a potential threat from the virus and concerns about the economy’s long-term health.

“Gold’s longer-term bullish backdrop will remain primarily supported on physical demand from central banks and rising risks to the global growth that will trigger another wave of worldwide stimulus,” Edward Moya, a senior market analyst at broker OANDA said in a note.

Gold, which is used as an insurance against economic risks, tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

Among other precious metals, palladium fell 0.6% to $2,339.26 an ounce, silver dropped 0.7% to $17.63, while platinum rose 0.9% to $969.43.

 

Reporting by Brijesh Patel and Eileen Soreng in Bengaluru; Editing by Steve Orlofsky Editing by Marguerita Choy and Lisa Shumaker

 

LME metals rebound after Friday’s correction but prices weaker in Shanghai

LME metals rebound after Friday’s correction, but prices weaker in Shanghai

The broader markets were mixed on the morning of Monday February 10, with equities in Asia generally weaker, as were metals on the Shanghai Futures Exchange, while the London Metal Exchange was firmer across the board.

There is still much uncertainty around the impact of the Wuhan coronavirus (2019-nCoV), but with more businesses returning to work in China this week, we might get a better feel for the likely impact on Chinese demand.

With China generally a net importer of metals, the demand shock could well see inventories build up in the country and along the supply chains that supply China, while exports of products are also likely to continue to be disrupted.

China’s CSI 300 is up by 0.21%, while other Asian equity indices are lower

Gold prices are edging higher again, recently quoted at $1,571.40 per oz

Base metals

Three-month base metals prices on the London Metal Exchange were up by an average of 0.9% this morning, but this is after an average fall of 1.9% on Friday. Nickel led the gains this morning, with a 1.4% rise to $13,005 per tonne, followed by a 1.3% rise in tin to $16,500 per tonne, while copper is up 0.9% at $5,704 per tonne.

Trading volumes have been above average again with 9,871 lots traded as of 5.37am London time.

In China, the most-traded base metals contracts on the Shanghai Futures Exchange were, for the most part, weaker and down by an average of 0.4%, with April aluminium the only metal bucking the trend with a 0.1% gain, while April zinc led on the downside with a 1% fall. April copper was off 0.4% at 45,650 yuan ($6,532) per tonne.

The spot copper price in Changjiang was down by 0.6% at 45,260-45,315 yuan per tonne and the LME/Shanghai copper arbitrage ratio was at 8, compared with 7.99 on Friday. The ratio was around 7.88 before the Lunar New Year holiday.

Precious metals

Precious metals were firmer this morning. The spot gold price was little changed at $1,571.38 per oz, but that was up from $1,565.58 per oz at a similar time on Friday morning. Silver prices were also little changed at $17.73 per oz, while platinum and palladium were up by 1.1% and 0.8%, respectively.

Wider markets

The yield on benchmark United States 10-year treasuries has weakened and was recently quoted at 1.59%, compared with 1.63% at a similar time on Friday. The German 10-year bund yield was slightly weaker too and was recently quoted at -0.39%, compared with -0.37% at a similar time on Friday.

Asian equities were for the most part weaker this morning – with the Nikkei down 0.6%, the Kospi down 0.49%, the ASX 200 down 0.14% and the Hang Seng down by 0.56%), while China’s CSI 300 was down by 0.27%.

Currencies

The dollar index (98.63) is holding in high ground, but other major currencies are mixed, with the yen (at 109.83) firmer on the back of haven interest, the Australian dollar (0.6705) is also firmer, while sterling (1.2901) and the euro (1.0954) are weaker.

Key data

Economic data already out shows China’s consumer prices index rose 5.4% against an expected rise of 4.9%. The index has been climbing at a fast pace since February last year when it troughed at 1.5%. China’s producer price index climbed 0.1%, this after being negative since August last year. Japan’s economy watchers sentiment index climbed to 41.9, from 39.8 previously. Later there is data on Italian industrial production and EU Sentix Investor confidence.

In addition, Federal Open Market Committee members Michelle Bowman and Patrick Harker are speaking.

Today’s key themes and views

For now, concerns about supply disruptions from China seem to be lifting base metals prices on the LME, while weaker prices on SHFE seem to be reflecting the likely demand situation in China. Overall, the combination of China being a net importer of most base metals and with the country facing a negative demand shock, it would not be unreasonable to expect prices to be weaker, but this might already have been priced-in, given the price weakness seen in the second half of January.

We expect choppy trading in the days and weeks ahead, until more is known about how big the demand shock will be.

Gold prices are edging higher and are likely to continue to do so until more is known about when the Wuhan coronavirus will be brought under control. Prices might well have been rising at a faster pace were it not for the stronger dollar and generally strong equity markets.

 

Published onFebruary 10, 2020 09:08 AM By William Adams

Gold steadies as coronavirus fears counters China economic data

Gold steadies as coronavirus fears counters China economic data

* Coronavirus death toll crosses 900

* Dollar touches 4-month peak By Asha Sistla Feb 10 (Reuters) – Gold prices held steady on Monday, as rising concerns over the severity of the coronavirus outbreak and its impact on the global markets offset slight pressure from positive economic data from China and the United States.

Spot gold was little changed at $1,569.05 per ounce by 0313 GMT. U.S. gold futures were flat at $1,572.70. A team of international experts led by the World Health Organization left for Beijing to help investigate the epidemic that claimed more than 900 lives in mainland China, surpassing the death toll from the SARS epidemic. Asian shares fell on market fears over the fallout from the epidemic. "There's still a great deal of uncertainty around the (virus) impact and we're seeing rising deaths and infections. The economic impacts are still unclear. If that's the case, we'll continue seeing reasonable support for gold," said Michael McCarthy, chief market strategist at CMC Markets. However, he said that a rise in China's January producer and consumer prices "minutely hurt" gold. Also capping gold's gains, the dollar touched a four-month peak earlier in the session against a basket of rival currencies after robust U.S non-farm payrolls data on Friday. The U.S. Federal Reserve said the U.S. economy slowed last year on weak global growth, but the likelihood of recession has declined.

The central bank flagged as risks the fallout from the coronavirus, "elevated" asset values and near-record levels of low-grade corporate debt. "Investors should continue to favour more defensive fixed income and, therefore, long gold positions until the impact of nCoV on growth becomes apparent," Stephen Innes, chief market strategist at AxiCorp, said in a note. Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust rose 0.13% to 916.08 tonnes on Friday, its highest since Oct. 29. Palladium advanced 0.6% to $2,329.83 an ounce, silver edged higher by 0.2% to $17.70, and platinum rose 0.6% to $970.83.

(Reporting by Asha Sistla in Bengaluru; Editing by Arun Koyyur)

Sunday February 09, 2020 22:52

Gold mine gangs tote AK-47s to outgun South African Police

Gold mine gangs tote AK-47s to outgun South African Police

Barberton Mines are now using state of the art equipment to trace illegal miners. Gold mines offer soft targets for syndicates that previously specialized in cash-in-transit heists. Picture: Simphiwe Mbokazi

JOHANNESBURG – At 10 p.m. on the second Sunday in December, a criminal platoon armed with AK-47 and R6 assault rifles stormed one of the largest gold mines still operating on South Africa’s fabled Witwatersrand basin.

Moving with military precision, the 15 attackers took hostages and plundered the smelting plant at Gold Fields Ltd.’s South Deep mine. While failing to break into the main vault, the gang escaped three hours later with gold concentrate worth as much as $500,000.

Violent crime soared through a decade of kleptocracy and graft under South Africa’s former President Jacob Zuma.

Gold mines offer soft targets for syndicates that previously specialized in cash-in-transit heists.

Their foot-soldiers outgun a demoralized police force and pile woes on a gold industry in the final stages of a decades-long death spiral.

“Mining companies are being attacked by thugs and armed gangs and there is a lack of police response,” said Neal Froneman, chief executive officer of Sibanye Gold Ltd., which repelled an attack on its Cooke mine two weeks ago. “It eventually has a knock-on impact into society, it’s lawlessness, it’s anarchy.”

There were 19 attacks on gold facilities last year, almost double the number in 2018, according to South Africa’s Minerals Council. More than 100 kilograms (3,527 ounces) of gold was stolen in 2019 as bullion rose to a five-year high, although not all companies disclose their losses, said the council, which represents the nation’s largest miners.

The attacks are part of a wave of violent crime. Murders in South Africa climbed to the highest in a decade, with an average of more than 50 people killed each day. Violent robbery has surged and last year President Cyril Ramaphosa’s government deployed the army in Cape Town to quell gang-related killings.

Ramaphosa has made combating crime a top priority since taking office in one of the world’s most unequal societies in 2018. While the violence is partly a legacy of apartheid rule that ended in 1994, his efforts have been hindered by the gutting of the National Prosecuting Authority and other law-enforcement agencies under his predecessor Zuma.

“The fundamental problem is police are not getting on top of organized violent crimes,” said Gareth Newham, who heads the justice and violence prevention program at the Institute for Security Studies in Pretoria. “We are seeing a deterioration in our policing capacity.”

An abandoned shaft at the Blyvooruitzicht Gold Mine near Carletonville proves attractive for illegal miners. Gold mines offer soft targets for syndicates that previously specialized in cash-in-transit heists.

After meeting with gold mining companies in October, Minister of Police Bheki Cele is considering plans to set up a task force to tackle the violence, said Lirandzu Themba, a spokeswoman for the ministry.

When 50 robbers overwhelmed security at Gold One International Ltd.’s smelting plant in May, the police held back from engaging with the gang after they were fired on, according to Jon Hericourt, vice president of operations at the Chinese-owned miner. Since the gang made off with an unspecified quantity of gold, the police have only provided scant information on its investigations, he said.

Gold One has beefed up security and switched its focus from thwarting internal theft to combating all-out assaults. Still, Hericourt doubts that will be enough.

“It’s not a mining company’s job to take on gangs like this, it’s the government’s job,” he said.

Sibanye has also strengthened its defenses after the nation’s biggest gold producer repelled several attacks last year, said Head of Security Nash Lutchman. Combat training is now standard practice for guards, who wear bulletproof jackets and patrol in armored vehicles at night.

Still, their shotguns and 9-millimeter pistols can’t compete with the automatic weapons used by gangs. The raids take months to plan, with the gangsters coercing mine employees into providing inside knowledge, Lutchman said.

“It’s military precision in terms of planning and execution,” he said. “No smelting plant is going to have sufficient manpower and fire power to defend an onslaught from 20 or 30 attackers.”

Gold mines offer soft targets for syndicates that previously specialized in cash-in-transit heists.

In the final quarter of 2019, both Harmony Gold Mining Co Ltd. and DRDGold Ltd. suffered fatalities during assaults.

The attacks are putting additional pressure on South Africa’s 130-year-old gold industry, forcing companies to increase spending at often marginal mines that were already battling against incursions by illegal miners. That’s compounding the geological challenges of the world’s deepest mines, deterring investors already concerned by the country’s power-supply crisis.

“It can potentially have a knock-on effect to potential investors as well because they are not going to invest in gold in South Africa because it’s too risky,” said Gold One’s Hericourt.

 

8 FEBRUARY 2020, 07:00AM / FELIX NJINI

Gold price is eyeing central banks’ reaction to coronavirus – INTL FCStone

Gold price is eyeing central banks' reaction to coronavirus – INTL FCStone

Gold price is eyeing central banks’ reaction to coronavirus – INTL FCStone

(Kitco News) Trying to measure economic fallout from the coronavirus is a difficult task, but when it comes to figuring out the virus’ impact on gold, investors should be paying attention to what central banks around the world are doing.

Any additional easing that might stem from slower economic growth will boost the case of holding gold long-term, said Rhona O’Connell, INTL FCStone head of market analysis for the EMEA and Asia regions.

“The potential industrial fallout from coronavirus is already leading a number of governments to cut interest rates or add to easing activity, while the U.S. 10-year bond has been dipping in and out of negative territory. This is all positive for gold in a risk-averse environment, although by definition we cannot know for how long it will be before this outbreak is controlled,” O’Connell wrote on Wednesday.

Equities have been rising this week as they recover from an earlier sell-off triggered by coronavirus fears. Gold saw some selling but managed to hold its $1,550 support level and consolidate above the $1,560-an-ounce level.

“The ?nancial markets have been a hive of activity since China’s return and after a rout on Monday … There was an almost palpable wave of relief on Tuesday when the People’s Bank of China (PBoC) continued injecting liquidity on a grand scale. This propelled Chinese equities higher and equities around the world were happy to take their cue accordingly,” O’Connell said.

But these market moves are just short-term noise, she added. What investors should be focusing on is what central banks from around the world decide to do next when dealing with the economic fallout from the virus.

“Asian governments are already starting to look at interest-rate decisions,” O’Connell pointed out. “Thailand has already cut rates … to a record low of 1.0% for its benchmark rate, arguing that a large number of businesses would be a?ected by the coronavirus as well as drought and a delay in passing the budget.”

The Philippines' central bank also cut rates this week by 25 basis points to 3.75% in response to the coronavirus.

On top of that, the Reserve Bank of Australia could be looking at cutting rates soon if economic growth is not fast enough in light of bush?res and coronavirus fallout. Other countries that recently cut rates further include Iceland and Bahrain. The European Union and Japan’s interest rates are already in the negative territory, O’Connell added.

“The interest-rate environment and the injection of liquidity into di?erent economies could well add a supportive factor to the market. Arguably this is already being priced in, but it should continue to be a tailwind in an era of ?nancial risk,” she wrote.

 

By Anna Golubova

US Mint gold coin sales see a sharp jump after worst year on record

U.S. Mint gold coin sales see a sharp jump after worst year on record

U.S. Mint gold coin sales see a sharp jump after worst year on record

(Kitco News) U.S. Mint gold coin sales saw a strong recovery in January after the weakest year on record in 2019.

The big story last year was contrasting sales between The Perth Mint of Australia, which saw a surge in gold coin sales, and the U.S. Mint, which reported dwindling sales throughout the year.

The latest data from the U.S. Mint, however, show a significant recovery with gold coin sales beginning the year with a bang. Important to note when looking at these numbers is that January is traditionally the strongest month of the year for the U.S. Mint.

A total of 60,000 ounces of the gold American Eagle coins were sold in January, which is a staggering increase of 2,900% from the previous month that saw only 2,000 ounces sold, according to the U.S. Mint data. This also marked the most ounces sold on a monthly basis since January 2019, which stood at 65,000.

From the silver side of things, the U.S. Mint sold a total of 3,846,000 one-ounce American Eagle coins in January, which is a massive uptick from zero ounces sold in December and 463,000 ounces sold in November.

In comparison, The Perth Mint reported selling 48,299 ounces of gold coins and minted bars in January, which is 39% lower than the December total of 78,912 ounces sold.

The gold price likely had nothing to do with a surge in sales in January as the yellow metal started the year off on a strong note, with spot gold briefly trading above $1,600 an ounce at the beginning of January.

In 2019, U.S. gold coin sales struggled as the U.S. Mint reported the worst year on record in terms of the American Eagle gold coins sales despite gold seeing the best year in nearly a decade.

A total of 152,000 ounces of the gold American Eagle coins were sold in 2019, which is 38% less than in 2018, according to the latest U.S. Mint data. This marked the lowest sales on record since the U.S. Mint began recording the figures in 1986.

Sales of silver American Eagle coins were the worst since 2007, with only 14,863,500 ounces sold in 2019, down from the already weak figure of 15,700,000 reported in 2018. In 2007, sales were only at 9,887,000 ounces.

One of the reasons for the higher gold price and weak bullion demand was investors choosing to hold gold in other forms, such as gold-backed ETFs and futures, according to analysts.

“It was mainly professionals, hedgers and you had a lot of buying from South America,” RBC Wealth Management managing director George Gero told Kitco News back in December. “Money that normally could have gone into gold coins ended up going into gold ETFs or gold futures.”

The Perth Mint, on the other hand, attributed its 2019 year-end surge in gold coin sales to Germany, which was behind most of the purchases.

Gold coin and minted gold bar sales from December showed a 45% uptick compared to the previous month. There was a total of 78,912 ounces of gold coins and minted bars sold in December, marking the highest monthly increase since October 2016, The Perth Mint said in December. The year-over-year comparison shows that sales were up 170%.

“We were happily surprised by the numbers in December. Just bear in mind, most of these sales have actually gone into Germany,” Neil Vance, Group Manager Minted Products at The Perth Mint, told Kitco News.

Germany had a new law that came into effect on January 10, which limited the anonymous gold purchase buying from EUR €10,000 to EUR €2,000. “That may explain part of the reason why December was quite large,” Vance said.

 

By Anna Golubova
For Kitco News
Wednesday February 05, 2020 14:13

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