Russia has denied yesterday's report in the Independent that the country discussed changing the dollar as the global currency of oil; France has called it speculation.  Iran's finance minister Shamseddin Hosseini says he has occasionally discussed a move away from the dollar with other nations, but such a shift would require agreement from everyone.  France and Kazakhstan have signed a flurry of deals: Total will acquire 17% and GDF Suez 8% of the Caspian Sea Khvalynskoye natural gas field.  Naftogaz says that it has paid in full its September bill.  Despite a catastrophic financial situation, the company is ready to meet its gas obligations this winter.  Reuters has a feature on the Nenet tribespeople of the Yamal Peninsula for whom Gazprom's plans for Arctic plunder are a threat to their very existence.  According to ...

The Independent reports that Gulf Arab states have been engaged in secret talks with Russia, China, Japan and France to replace the US dollar with a basket of currencies in the trading of oil:  'This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil'.  Saudi Arabia's central bank chief has vociferously denied these claims, says the Washington Post.  An unlikely venture for Gazprom: the company apparently plans to start a chain of fast-food and supermarket outlets.  It is likely that the gas giant will recommence gas purchases from Turkmenistan this month or next, following a long suspension due to April's pipeline explosion.  Ukrainian Prime Minister Yulia Tymoshenko will postpone the electorate-displeasing move of raising domestic gas prices until after the Jan. 17 presidential election, despite a ...

Natural Resources Deputy Minister Sergei Donskoi has said that Russia would welcome foreign companies looking to explore the country's oil and gas reserves as domestic firms lack the 'strength and money' to carry out these operations themselves.  State-run electricity companies will invest $19.5 billion next year, or 13.5% less than planned after the government approved their 2010 budget, according to the Moscow Times.  EDF may take a 10% stake in Gazprom's South Stream pipeline.  Bulgaria's Economy and Energy Minister Traicho Traikov has said Sofia will demand economic incentives from Moscow to guarantee its commitment to its major Russian-backed energy projects.  ARMZ Uranium Holding is reportedly negotiating with Areva to jointly develop deposits in Namibia and other African countries, where one-fifth of the world's uranium is to be found.  The UK is currently on a non-Russian energy push with ...

International banks, the EU and Ukraine have met an agreement on Kiev reforming its gas sector that will allow the country to receive up to $1.7 billion in loans to secure gas transit.  The European Bank for Reconstruction and Development said it could provide $300m for immediate working capital and up to $450m in 2010 for investment.  President Medvedev has opened the 75% Russian-owned $720 million hydropower plant in Tajikistan.  US murmurings about how to limit speculative trading on oil is prompting market figures in Russia to consider how these rules may affect their trading.  TNK-BP will start pumping oil from five new fields in Siberia in 2013 and 2014.  RFE/RL examines the interplay between China, the EU and Russia for control of energy resources in central Asia, with analysts describing the efficiency of China's strategy, ...

Russia's economy shrunk the most in 15 years in the first quarter after the government's stimulus spending package failed to have the desired effect.  The investment arm of the World Bank plans to use $200 million to buy stakes in bad-loan-struck Russian banks and become a co-investor in the state.  St Petersburg bank has announced first quarter losses of 62%, which in fact beat forecasts predicting a steeper drop.  Europe's biggest home improvement retailer Kingfisher plans to make a major investment push into Russia. Cargo watchdog SGS has said that a fake SGS certificate of quality was used upon a shipment of Russian wheat imported to Egypt, although the chairman of Egyptian Traders Co. has said that the certificate was valid and fears the case is becoming 'too political'.  Tycoon Alexander Lebedev has declined to comment upon rumors that ...

It was another stellar day for all the precious metals yesterday…gold, silver platinum and palladium. Gold was up a hair over two percent…and the other three metals were up four percent plus.

Gold rose almost from the Globex open at the start of Friday morning trading in the Far East…and really moved to the upside the moment that Sydney closed for the weekend. From there, it rose steadily through London and the Comex open…with the peak price coming at the 4:00 p.m. London close…11:00 a.m. in New York. However, gold managed to close very close to its highs of the day [for a gain of almost $20] by the time electronic trading on the Globex system was over at 5:15 p.m. late Friday afternoon. The usual N.Y. commentator added this…”Aggregate estimated volume was only 100,104 lots and less than 25,000 contracts traded in the last three hours.”

However, the star performer was

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TODAY: Russia back firm but cautious stance on North Korea; Russia-NATO council meeting on level of ambassadors; Russia-Georgia discuss border reopening; Kremlin seeks extradition of Yukos' Spanish head; Putin tries his hand at journalismVitaly Churkin, Russian Permanent Representative to the United Nations, has said that Russia will back a 'strong resolution' on North Korea.  According to other sources, Russia believes that a blockade should not be imposed, 'in any case it is counterproductive to raise the question of the DPRK's international isolation. The path to dialogue should not be disrupted, and the problem can be solved only in political and diplomatic ways'.  An article in the Moscow Times explains why Russia has the most to lose from North Korea's nuclear ambitions.  'One of ...

TODAY: Troops begin controversial Georgia border control; EU fears Russia not a 'reliable partner'; Medvedev's first year analyzed; Russians unimpressed by income anti-corruption drive; democracy dwindling but economy bolstered in Sochi?; balletSurveillance on the borders between Abkhazia and South Ossetia and Geogia has begun with hundreds of troops deployed; Russia apparently plans to construct a naval base in Abkhazia.  Russian Ambassador to Abkhazia Semyon Grigoryev has set up the country's new Russian embassy.  Reuters has a list of 'tipping points' in relations between Georgia and Russia here.  The Chairman of the Duma's International Affairs Committee has apparently reiterated that Russia was forced to intervene in Georgia due to actions undertaken by President Mikheil Saakashvili.  'Any hope for trust, which is ...

Gold didn’t do much in the Far East or Europe on Wednesday…but the bottom, if you want to call it that, occurred shortly after the start of floor trading on the Comex yesterday morning in New York. From that low, gold rose steadily…gaining a little over $20 between then and the close of electronic trading at 5:15 yesterday afternoon. In the process, it set another new high for this move.

For the most part, silver’s action mirrored gold. The low of the day was at the London silver fix (noon London…7 a.m. New York). From there it rose, just like gold…closing at a new high for this leg up. And, for the second day in a row, I was underwhelmed by the performance of the HUI.

In the last three days, I’ve noticed that there has been a change in pattern during Far East trading. It’s not a lot, but it’s something

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The high for gold came at about 1:30 p.m. in Hong Kong yesterday…which was half past midnight Tuesday morning in the Eastern time zone. From there, gold got sold off about $15…and never fully recovered the rest of the day. An attempt to break out early this morning (Wednesday) met with the usual fate in Far East trading.

Silver was similar…but far more volatile. Unlike gold, it managed to finish positive on the day…even over $12. Let’s see if that lasts into today.

As I said yesterday…today is options expiry…and I’m ready for anything…both before and after the close of trading on the Comex this afternoon.

The open interest on Monday was a little more subdued. Gold o.i. rose 1,568 contracts to 361,473…and silver o.i. rose 300 contracts to 88,899 contracts.

The usual N.Y. commentator had the following yesterday, which I thought was worth sharing…”Since gold’s recent low nearby Comex close of $807.30 on

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