-- Posted Tuesday, 16 March 2010 | Digg This Article
| | Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $1122.85 | +$17.10 |
Silver | $17.34 | +$0.27 |
XAU | 169.92 | +2.66% |
HUI | 426.75 | +2.96% |
GDM | 1273.88 | +2.94% |
JSE Gold | 2219.31 | +32.03 |
USD | 79.70 | -0.54 |
Euro | 137.69 | +0.95 |
Yen | 110.78 | +0.32 |
Oil | $81.70 | +$1.90 |
10-Year | 3.653% | -0.051 |
T-Bond | 119.1875 | +0.75 |
Dow | 10685.98 | +0.41% |
Nasdaq | 2378.01 | +0.67% |
S&P | 1159.46 | +0.78% |
The Metals:
Gold and silver traded as much as 1% above yesterday’s close in Asia in London before they both jumped even higher in New York and gold ended near its noontime high of $1127.35 with a gain of 1.55% while silver ended near its high of $17.468 with a gain of 1.58%.
Euro gold rose to about €817, platinum gained $8.50 to $1623.50, and copper climbed 5 cents to about $3.36.
Gold and silver equities rose over 2% in the first hour of trade before they dipped to see less than 2% gains as the fed statement was about to be released, but the miners then rose back near their earlier highs in the last two hours of trade and ended with almost 3% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Building Permits | Feb | 612K | 601K | 622K |
Housing Starts | Feb | 575K | 570K | 611K |
Import Prices | Feb | -0.3% | -0.2% | 1.3% |
Import Prices ex-oil | Feb | 0.2% | - | 0.4% |
Export Prices | Feb | -0.5% | 0.3% | 0.7% |
Export Prices ex-ag. | Feb | -0.2% | - | 0.7% |
China, Japan Reduced Holdings of U.S. Treasury Debt in January Bloomberg
The fed kept their fed funds rate in its record low target range of 0.00% to 0.25%, as expected. They also kept in the statement that they expect rates to remain “exceptionally low” for an “extended period.” “For a second consecutive meeting, Kansas City Federal Reserve Bank President Thomas Hoenig dissented, saying the commitment to keep rates exceptionally low for an extended period was no longer warranted.”
Tomorrow at 8:30AM EST brings PPI fro February expected at -0.2% and Core PPI expected at 0.1%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil climbed back over $80 a barrel as the U.S. dollar index fell on the expectation of, and then confirmation of, the fed’s decision to keep interest rates at record low levels.
Treasuries rose along with the Dow, Nasdaq, and S&P on the fed’s continued pledge to keep rates low.
Among the big names making news in the market today were GE, Citigroup, Shell, AMR, Sharpe, and Lilly.
The Commentary:
“Well, the open interest numbers for Friday were not great in gold. The gold price 'declined' about $20 on that day... and open interest actually rose 4,275 contracts. Considering the price action, it could have been someone establishing a short position. Hopefully Friday's Commitment of Traders will show what happened. Gold volume was reported as 177,575 contracts. On the other hand, the silver price also declined on Friday... but in this case, open interest fell 254 contracts. Was it short covering? Who knows... but that would be my first guess. Volume was 32,123 contracts.
CME Daily Delivery Notice for Monday showed that zero gold and 120 silver contracts are scheduled for delivery tomorrow. All 120 silver contracts were issued by JPMorgan. There were no changes reported in either the GLD or SLV inventories... or U.S. Mint production numbers. But over at the Zürcher Kantonalbank in Switzerland, they reported that their gold ETF added another 23,325 last week... plus another 568,136 ounces of silver into their silver ETF. Their silver ETF is sort of like the Energizer bunny... week in and week out, more and more silver gets added... and not small amounts, either. I thank reader Carl Loeb for those numbers. The Comex-approved depositories reported a huge intake of silver on Friday... 5,033,494 ounces... all of which went into the Brink's, Inc. warehouse. This is the biggest one-day inrease that I can remember in years. I wouldn't read anything into it... at least not yet.”– From Ed Steer’s Gold & Silver Daily, read the full report here.
“Dear Friends,
Today was another case of “Buy Europe” as traders reacted to further rumblings out of Brussels that the EU finance ministers were finagling a way around the original Euro treaty of 1991 which supposedly prevents bailouts of countries that screw up their own fiscal house. The idea, best that I can understand it, is that the member countries would pool some funds and provide direct loans to Greece. Germany apparently did not like the idea.
Traders did however and began buying up the European currencies as the Euro, Swiss Franc, and the British Pound were all higher today after getting whacked yesterday. Seems like the Yo-Yo model is still intact. Tomorrow- who knows?
Regardless, today was “what risk – there ain’t no risk” and with that, everything that moved and was not nailed down to the ground was purchased. Crude oil, copper, grains, cotton, you name it – the only exceptions that I could see were natural gas and sugar. Yes sirree bob – the algorithms are alive and well as the weakness in the Dollar triggered them to buy today after triggering them to sell yesterday.
I think I have found a solution to the world’s search for plentiful and cheap energy – I read somewhere that some clever inventors are trying to use the motion of the ocean’s waves to produce energy. Forget that – how about harnessing all the motion that is generated and then wasted from these damn algorithms and funnel that into some device that can crank out electricity and crude oil would become obsolete overnight.
As I said yesterday, there is no trading fundamentals anymore in these markets, it is all about money flows from hedge funds and those are all cranked out by machines. The machines are running the markets in what seems like a “Terminator” movie. Skynet is probably not far behind. By then it will decide to get short the grains and decide that to really make a lot of profits, it needs to eliminate demand sources so it will generate another order to kill off the carbon-based humanoids that eat the stuff. Once demand is then curtailed, prices will fall and Skynet can clean up on those shorts. Honestly, that is what it feels like at times sitting here watching the money being crammed into markets and ripped out the next day only to be stuffed back in the following day.
Skynet is obviously long the equity markets as the S&P 500 made a yearly high in today’s trading session negating a potential double top near the 1150 level. The day is yet young so it remains to be seen whether or not John Conner can take it down. It could be I actually have the wrong movie in mind as the entire rally might be part of “The Matrix” and its imaginary world of illusion. I certainly have no idea what they are trading in there as the stock market has priced in one helluva recovery. Even the Administration was forced to admit the obvious today that the unemployment rate is going to stay elevated for an extended period of time so I am a bit confused as to where all the “demand” from this consumer demand driven economy is supposed to be coming from. But that is just a case of the “market” being far wiser than any of us. I am sure they have that all figured out.
Back to gold – the bounce back up and away from $1,100 confirms that level of support and the bottom of the trading range. With the push through $1,120 short covering was triggered among the weaker shorts taking price up into the region where the stronger-handed shorts once again emerged near their former level of defense near $1,130. Bulls will need to jam price through their selling to get the market on track for a test of the high from 2 weeks ago. That level, centered near $1,145 is what stands between them and a push to $1,160.
The bullion banks will attempt to stymie the move higher here at $1,130 and then try to take price back down to the lower end of the trading range. Interestingly enough, gold has been making a series of higher lows over the past 6 weeks with the result that while it is still in a consolidation period or range trade, the range is tightening or constricting. The longer it can hold above the $1,100 level, the higher the odds are that the breakout move will be to the upside.
The HUI is following the pattern seen in the gold today. It is higher moving away from support near the 409 – 410 level but it too is meeting overhead selling as it works in its range trade. The top of the range is 429 – 431.
The Dollar continues to flirt with a technical breakdown as it inches ever lower towards the bottom part of its recent trading range. It came within a mere few points of taking out the bottom of the range and inducing some stop loss sell orders from being activated but the bulls were able to muscle price away from the danger level – for now. Volume just seems to dry up as it moves toward 80 on the downside but this could get quite interesting if the bears show more conviction and attempt to make a concerted effort to pick off those swelling stops. Just like gold, although in the inverse, the Dollar’s range is tightening but it has been making a series of lower highs that show up more on the hourly chart rather than the daily. The jury is still decidedly out on this thing but as close as it is to critical support, one would have to give the slight edge to the bears at this point. Once again, it all depends on how traders/investors react to the developments coming out of Europe in relation to Greece. That situation is so fluid and traders are so fickle that predicting anything in advance is a fool’s errand.
It is probably also not helping the Dollar any when we read that the President has nominated Janet Yellen, current head of the San Francisco Federal Reserve, to the position of Vice Chair of the Federal Reserve. She is as dovish as dovish could be. Traders would interpret such a choice for that position as a signal that the Dollar will be sacrificed and that inflation is in the cards. Yellen is another Academic with ZERO private sector experience whose entire resume can be summed up as “perpetual university student”. There is certainly nothing there to inspire the least bit of confidence when it comes to supporting the currency.
Bonds are strangely higher today when one considers a yearly high in the S&P 500 and a general reflation trade. I have given up attempting to figure that market out as it is undoubtedly so heavily intervened in by the monetary authorities that the signals it gives off are dubious. One would think that with gold moving higher today and the Dollar lower that the last thing that would be moving higher is the bond market. After all, if the economy is so damned good that the equities can put in a yearly high leading one to believe the chatter that the Fed is moving towards draining excess liquidity because things are so peachy-keen, then why would money be flowing INTO and not OUT OF bonds.
In the meantime, don’t worry about a single thing – bankrupted states, financially impoverished towns, townships, counties and cities, falling tax revenues, chronically high underemployment rates and federal government spending that can only be described as a treacherous betrayal of the next generation of citizens – none of this is important – the only thing that matter is that the stock market is higher so all is well. Let the good times roll baby!
Personally it looks to me like America has been bewitched.”- Dan Norcini, More at JSMineset.com
“Thoughts For This Morning:
Do you think the present revelations about Lehman are plausible denial for having flushed it?
Do you really believe that Lehman was the only entity to play outside the rules?
Do you think Lehman was attending to all the details and ethics of finance when securitizing mortgages it bought?
Did your mortgage pass through Lehman’s hands?
Do you want to buy the Brooklyn Bridge?”- Jim Sinclair, JSMineset.com
GATA Posts:
David Ranson: Who 'owns' the bullion in a precious metal ETF?
Jon Matonis: Hunt Brothers demanded physical delivery too
The Statistics:
Activity from: 3/15/2010
Gold Warehouse Stocks: | 10,010,969 | -13,020 |
Silver Warehouse Stocks: | 116,631,651 | -312,866 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1115.511 | 35,864,805 | US$40,329m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 118.90 | 3,790,586 | US$4,256m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.35 | 491,456 | US$554m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 49.20 | 1,581,946 | US$1,747m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,979 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: The LSE added 0.30 tonnes and the JSE subtracted 0.01 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 77.57 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,302.58 - No change from yesterday’s data.
The Miners:
ITH’s (THM) non-brokered financing, Barrick’s (ABX) mine accident, Pacific Rim’s (PMU) third quarter results, Kinross Gold’s (KGC) definitive agreement to acquire Underworld Resources, and Metalline’s (MMG) meeting of shareholders were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU+14.34% $2.95 |
2. ITH | THM +7.88% $6.30 |
3. Jaguar | JAG +5.97% $11.90 |
LOSERS
1. DRDGOLD | DROOY-5.65% $5.01 |
2. Paramount | PZG -4.29% $1.56 |
3. Vista Gold | VGZ -1.99% $1.97 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Cavan Announces 2010 Exploration Program - More
- March 16, 2010 | Item | ShareThis
Jojay Property NI 43-101 technical report filed on SEDAR - More
- March 16, 2010 | Item | ShareThis
Nemaska Signs Financial Public Relations Service Agreement With MI3 Communications Financieres Inc. - More
- March 16, 2010 | Item | ShareThis
Palladon Ventures Ltd.: Luxor Capital Partners, LP, Realizes on Debt and Takes Majority Ownership Interest in Palladon Iron Corp. - More
- March 16, 2010 | Item | ShareThis
Golden Dawn Minerals Inc. (the "Company") announces changes in its board of directors - More
- March 16, 2010 | Item | ShareThis
International Tower Hill Mines Ltd. Announces CAD 30,000,000 Non-Brokered Equity Financing - "International Tower Hill Mines Ltd. ("ITH" or the "Company") (TSX:ITH - News)(AMEX:THM - News)(Frankfurt:IW9 - News) is pleased to announce a proposed non-brokered financing of up to 5,000,000 common shares of the Company at a price of CAD 6.00 per common share (the "Offering") in the United States and Canada. The Company will pay a 6% finder's fee payable in cash and/or common shares on a portion of the Offering." More
- March 16, 2010 | Item | ShareThis
Bravo Gold Corp.: Homestake Ridge Project Update - More
- March 16, 2010 | Item | ShareThis
First Gold Exploration Inc.: Drilling Continues to Intercept the Mineralized Zone - More
- March 16, 2010 | Item | ShareThis
Conquest Clarifies Detour Lake Area Acquisition - More
- March 16, 2010 | Item | ShareThis
Barrick halts big Tanzania gold mine after accident - "African Barrick Gold (ABG) suspended production at its Bulyanhulu mine in Tanzania on Tuesday while it worked to rescue miners trapped by a fall of ground, the company said." More
- March 16, 2010 | Item | ShareThis
Nanika Receives Assay Results for Remainder of First Drill Hole completed on the Sweeney Property in 2010 - More
- March 16, 2010 | Item | ShareThis
Bonaventure Enterprises Inc. Election of New Director and Shareholder Approval Received to New 10% Stock Option Plan - More
- March 16, 2010 | Item | ShareThis
First Uranium announces senior management changes - More
- March 16, 2010 | Item | ShareThis
Ruby Creek Closing on the Mkuvia Gold Project - More
- March 16, 2010 | Item | ShareThis
1.25 km Surface Gold-Silver Anomaly Identified at Riverside Resources Inc.'s Libertad Gold-Silver Project, Sonora, Mexico by Partner Geologix Explorations Inc. - More
- March 16, 2010 | Item | ShareThis
Stellar Pacific Ventures Inc. Announces the Beginning of a Work Program on its Lake Urban Property, in Urban Township, Northwestern Quebec - More
- March 16, 2010 | Item | ShareThis
Geologix Explorations Inc.: Trenching at Libertad Project Identifies 1.25 km Strike of Gold/Silver Mineralization - More
- March 16, 2010 | Item | ShareThis
Riverstone Defines Large Open Footprint for the Nami Gold Discovery - More
- March 16, 2010 | Item | ShareThis
Crowflight Provides Update on TSX Delisting Review - More
- March 16, 2010 | Item | ShareThis
Golden Eagle Transfers Control of Bolivian Subsidiary Operations - More
- March 16, 2010 | Item | ShareThis
Goldeye to Add Second Drill to Tyrrell Project Gold Exploration - More
- March 16, 2010 | Item | ShareThis
Montoro Receives Ontario Geologicial Survey Report on Its Serpent River Property in Elliot Lake, Ontario - More
- March 16, 2010 | Item | ShareThis
Ashburton Receives Positive Geochemistry for the Deep Creek Gold Project, Nevada - More
- March 16, 2010 | Item | ShareThis
ATAC Resources Ltd. Appoints Chairman of the Board - More
- March 16, 2010 | Item | ShareThis
Lomiko Metals Inc. Launches New Website www.Lomiko.com - More
- March 16, 2010 | Item | ShareThis
Strategic Resources Stakes Additional Rare Earth Claims - More
- March 16, 2010 | Item | ShareThis
Hinterland Acquires Lac Fecteau in Windfall Lake Area, Quebec - More
- March 16, 2010 | Item | ShareThis
Pele Mountain Hits High Grade with Visible Gold at A-Zone - More
- March 16, 2010 | Item | ShareThis
Solex Resources Corp. announces closing of private placement - More
- March 16, 2010 | Item | ShareThis
Bullion Monarch Mining Inc. Continues to Earn Record Revenues - More
- March 16, 2010 | Item | ShareThis
Typhoon Studies the Possibility of a Porphyric Gold Deposit on the Fayolle Property - More
- March 16, 2010 | Item | ShareThis
Patriot Gold Initiates Additional Metallurgical Testing for Moss Mine Gold Project, Arizona - More
- March 16, 2010 | Item | ShareThis
Tyhee Announces Favourable Results From Initial Stage Of Diamond Drill Program At Clan Lake, Yellowknife Gold Project, NWT Canada - More
- March 16, 2010 | Item | ShareThis
VHGI Subsidiary VHGI GOLD Unveils Plans to Commence Production for Both Treasure Gulch and Sun Gold mines - More
- March 16, 2010 | Item | ShareThis
Daulton Capital Corp. Announces Ten Day Extension of Option Payment Pending Final Negotiations on Additional 48 Claim Land Package - More
- March 16, 2010 | Item | ShareThis
Nautilus 2009 Annual Results and Conference Call - More
- March 16, 2010 | Item | ShareThis
Black Tusk Minerals Announces Non-Brokered Private Placement - More
- March 16, 2010 | Item | ShareThis
Midland Exploration and Osisko Commence a First Drilling Program on Dunn Property - More
- March 16, 2010 | Item | ShareThis
Astral Completes Infill Aeromagnetic Survey at Jumping Josephine and Prepares for 2010 Exploration Season - More
- March 16, 2010 | Item | ShareThis
Capella Resources Updates Drill Results on Its Lajitas Project in Chile - More
- March 16, 2010 | Item | ShareThis
U3O8 Corp. Intersects Eighth Uranium-Bearing Structure, Underscoring Significant Size Potential of the Kurupung System - More
- March 16, 2010 | Item | ShareThis
Tombstone Exploration Corporation Receives Approval From State of Arizona for 2010 Drill Program - More
- March 16, 2010 | Item | ShareThis
Source Steps Out at San Acacio; Extends Veta Grande Vein to Depth ; Veta Natividad Grades 155g/t Silver Over 3.0 m; Company Prepares for Underground Drilling - More
- March 16, 2010 | Item | ShareThis
Royal Roads drilling results continue to expand stringer-stockwork zone at Clementine West - More
- March 16, 2010 | Item | ShareThis
Cream Minerals-Roca Mines Drilling Intersects 1,886 g/t Silver and 6.18 g/t Gold Over 3.11 m - More
- March 16, 2010 | Item | ShareThis
MetalCORP Limited Provides Exploration Update on Active Projects in Northwest Ontario - More
- March 16, 2010 | Item | ShareThis
Nord Resources Makes Payment Due to Nedbank Under Copper Hedge Agreement - More
- March 16, 2010 | Item | ShareThis
Kirrin Resources Closes Fully Subscribed $200,000 Private Placement - More
- March 16, 2010 | Item | ShareThis
Phoenix High-Grade Uranium Deposit Continues to Encounter Significant Results - More
- March 16, 2010 | Item | ShareThis
Creston Moly Confirms Increased Resource and Grade Potential Beyond Pit Limits: Drilling Continues to Intersect Significant Molybdenum Values at El Creston - More
- March 16, 2010 | Item | ShareThis
Eaglecrest Announces a Non-Brokered Private Placement of Up to C$6 Million Dollars - More
- March 16, 2010 | Item | ShareThis
Medusa Mining Limited: Co-O Expanded Mill Commissioning - More
- March 16, 2010 | Item | ShareThis
Legend International Holdings Inc. Phosphate Project - Further Milestones and Project Update - More
- March 16, 2010 | Item | ShareThis
Crocodile Gold Appoints David Keough as Chief Operating Officer in Australia Effective April 2010 - More
- March 16, 2010 | Item | ShareThis
Alamos Gold Reports Record Earnings on Record 2009 Gold Production and Declares Inaugural Dividend - More
- March 16, 2010 | Item | ShareThis
Mercator Announces Heads of Agreement for Sale of New Mexico Copper Company Inc - More
- March 16, 2010 | Item | ShareThis
Key Permit Secured for Certej Project - More
- March 16, 2010 | Item | ShareThis
Metalline Mining Company April 15, 2010 Meeting of Shareholders - Metalline Mining Company (NYSE Amex: MMG) is pleased to announce that on March 9, 2010 its joint proxy statement/prospectus on Form S-4 was declared effective by the Securities and Exchange Commission. The proposals described in the definitive joint proxy statement/prospectus, which include a proposal to effect the merger transaction with Dome Ventures Corporation, will be presented to Metalline's shareholders at a special meeting to be held on April 15, 2010." More
- March 16, 2010 | Item | ShareThis
Pacific Rim Mining Announces Fiscal 2010 Third Quarter Results - "For the three month period ended January 31, 2010, Pacific Rim recorded a loss for the period after discontinued operations of $(1.0) million or $(0.01) per share, compared to a loss of $(0.4) million or $(0.00) per share for the three month period ended January 31, 2009. During Q3 2009, the Company realized $1.2 million in net income from discontinued operations, which substantially offset the loss from continuing operations during that period and for which there was no comparable value during Q3 2010." More
- March 16, 2010 | Item | ShareThis
Kinross Announces Definitive Agreement to Acquire Underworld Resources - "Kinross Gold Corporation (TSX:K - News)(NYSE:KGC - News) announced today that, further to Kinross' press release dated March 11, 2010, it has entered into a support agreement with Underworld Resources Inc. ("Underworld") (TSX-V:UW - News). Pursuant to the agreement, Kinross will offer to acquire 100% of the outstanding common shares of Underworld (the "Common Shares"), other than the 8.5% of the Common Shares already owned by Kinross (on a fully-diluted basis), by way of a friendly take-over bid on the basis of 0.141 of a Kinross common share plus $0.01 in cash per Common Share, and Underworld has agreed to support the offer." More
- March 16, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted Tuesday, 16 March 2010 | Digg This Article | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain Over 1.5%
