-- Posted Thursday, 10 June 2010 | Digg This Article
| | Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $1219.70 | -$8.55 |
Silver | $18.30 | +$0.14 |
XAU | 175.00 | +1.49% |
HUI | 459.89 | +0.85% |
GDM | 1395.21 | +0.94% |
JSE Gold | 2524.37 | -9.87 |
USD | 86.97 | -0.92 |
Euro | 121.31 | +1.47 |
Yen | 109.55 | UNCH |
Oil | $75.48 | +$1.10 |
10-Year | 3.319% | +0.1.32 |
T-Bond | 123.09375 | -1.78125 |
Dow | 10172.53 | +2.76% |
Nasdaq | 2218.71 | +2.77% |
S&P | 1086.84 | +2.95% |
The Metals:
Gold fell to as low as $1215.02 by about 10AM EST before it bounced back higher in the last few hours of trade, but it still ended with a loss of 0.7%. Silver fell to as low as $17.882 in early London trade, but it then stormed back higher for most of the rest of the day and ended with a gain of 0.77%.
Euro gold fell to about €1009, platinum gained $2 to $1529, and copper rose slightly to about $2.86.
Gold and silver equities traded mostly slightly higher and ended with about 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 6/05 | 456K | 450K | 459K |
Trade Balance | Apr | -$40.3B | -$41.3B | -$40.0B |
Treasury Budget | May | $135.9B | $142.0B | $189.6B |
Tomorrow at 8:30AM EST brings Retail Sales for May expected at 0.2%. Excluding autos, sales are expected at 0.1%. At 9:55 is Michigan Sentiment for June expected at 74.5 and at 10AM is the Business Inventories report for April expected at 0.5%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose above $75 a barrel “on strong Chinese export data and the International Energy Agency's raised global oil demand forecast.”
The U.S. dollar index fell as the euro rose after “European Central Bank President Jean-Claude Trichet said the central bank would maintain its liquidity measures but not increase or add any.”
Treasuries fell markedly as the Dow, Nasdaq, and S&P rose almost 3% on strong economic news.
Among the big names making news in the market today were Goldman Sachs, AIG, BP, CVS Caremark, AT&T, and Toyota.
The Commentary:
“Dear CIGAs,
News that China’s exports rose 48.5% in May and their imports increased 48.3% gave investors cause for lessening concerns over the fallout from Europe’s woes (a tip of the hat here to our own Monty Guild who has been consistently correct about China) and that sent money back into stocks during the session as “risk concerns” abated.
That same minor shift in investor psychology for the day took the pressure off of the Euro and encouraged selling in the US Dollar.
It also took some of the safe haven shine off of gold which saw some follow through selling from yesterday’s technically induced move lower. As mentioned in previous chart comments, momentum traders seeing gold unable to close above its recent all time high booked profits on longs while some opportunistic short term oriented shorts decided to get a bit more aggressive seeing the same thing.
Gold should remain well supported however on dips in price as fundamentals behind sovereign debt woes remain basically unchanged. Even on a day like today, it came well off its worst levels of the session.
In a conversation with a friend yesterday we came to the conclusion that in today’s modern world of hedge fund algorithms, the entire business cycle now runs its course in the matter of a 24 hour period. One day all is well with the world and the worst is behind us; the next day the business cycle suddenly reverses and the world is coming to an abrupt end. What once took 6 months to a year to sort out now occurs overnight. Navigating this madness from an investment standpoint or even a trading vantage can produce serious cases of whiplash as this near bipolar change from moment to moment is here to stay.
I cannot tell you how many traders are getting chopped and shredded to pieces in these markets. That is the reason I want to reiterate that unless you are a dedicated trader and willing to sleep only a few hours a day, buy your physical metal needs on dips in price and forget about trying to compete against the hedge funds and their black boxes. You will probably end up making money in the long term while many of them end up as zeroes. Contrary to common opinion, most of the hedge funds out there cannot successfully navigate these markets either.
Remember when gold was considered a “risk” asset when the credit markets first imploded in July 2008 and hedge funds were throwing it away when risk aversion was the name of the game. It would descend along with the entirety of the commodity complex. Now it is doing the exact opposite, and I might add, more in keeping with its historical role, moving higher during periods in which investors are worried and “risk” is out and moving lower when investors are more upbeat and “risk” is back in.
I want to add one more thing – there was some chatter out of China regarding gold’s suitability in diversifying some of its huge reserve holdings. That led some to believe that there would be no imminent purchases of the metal by the Chinese. The only thing that needs to be said regarding that type of thinking is that those who hold to that view have never traded corn or soybeans. The Chinese will NEVER tip their hand and announce any buys before the fact; only after the fact does the news come out. Price action will always tell us when the big buyers are active and they DO NOT CHASE STRENGTH preferring to shoot down ideas that they might be buyers when they want to buy at a better level than the market is currently giving them.
A comment on the HUI action today vis-à-vis gold – because risk is back in and paper is in favor (for today), the ratio trades are being lifted. This explains the strength in the shares against the weakness in bullion. It is as simple as that. As soon as risk aversion is the play of the day once again, the hedgies will put those trades back on. As I have said repeatedly, they will work that trade until one day it suddenly just stops working. When it does, you will see a massive unwind of share shorts as they all play “Follow the Lemmings” off the cliff at the same moment in time.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Is GATA belaboring the obvious? Not in the financial media
CNBC Asia's 'Squawk Box' finds affirmation for GATA
Bernanke purports to be mystified by gold price
The Statistics:
Activity from: 6/09/2010
Gold Warehouse Stocks: | 10,721,910 | -75,248 |
Silver Warehouse Stocks: | 117,936,441 | +296,693 |
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 | 1306.137 | 41,993,616 | US$51,119m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 122.58 | 3,940,903 | US$4,821m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 476,022 | US$556m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 47.21 | 1,517,892 | US$1,891m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,975 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 7.607 tonnes to a new record high holding.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 84.19 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9208.83 - No change from yesterday’s data.
The Miners:
Capital Gold’s (CGC) third quarter results, Richmont’s (RIC) drilling campaign, and Apogee’s (APE.V) awarded contract were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Freeport | FCX +5.94% $64.36 |
2. Lihir | LIHR+4.29% $35.23 |
3. Claude | CGR +3.77% $1.10 |
LOSERS
1. Capital Gold | CGC -2.47% $3.55 |
2. Eldorado | EGO-1.10% $17.09 |
3. Fronteer | FRG -0.59% $6.76 |
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:
Ironwood Gold Corp. Announces Initiation of Coverage by Leading European Research Analyst - More
- June 10, 2010 | Item | ShareThis
Excalibur Resources Stakes Additional Claim at Sturgeon Lake, Ontario - More
- June 10, 2010 | Item | ShareThis
Trilliant Exploration Signs Agreement to Acquire Mexican Gold and Silver Operation - More
- June 10, 2010 | Item | ShareThis
Golden Predator Commences 3,500 m Drill Program at Eureka Project, Yukon Territory - More
- June 10, 2010 | Item | ShareThis
Razor Resources Inc. Announces First Shipment of Gold Since Its Acquisition of the Clavo Rico Gold Mine in Honduras - More
- June 10, 2010 | Item | ShareThis
Oroco Resource Corp.: Gold Recoveries Up to 80% at Cerro Prieto - More
- June 10, 2010 | Item | ShareThis
Wildcat Announces Initial Approvals on Acquisition of Mammoth Minerals - More
- June 10, 2010 | Item | ShareThis
Miranda Gold Signs Exploration Funding Agreement with SIN Holdings on Redlich Project - More
- June 10, 2010 | Item | ShareThis
SAMEX Mining Corp.: Private Placement to Fund Gold Exploration, Chile - More
- June 10, 2010 | Item | ShareThis
Riverstone Updates Drill Program at Karma Gold Project - More
- June 10, 2010 | Item | ShareThis
Salares Lithium Information to be Available Through Standard & Poor's Market Access Program - More
- June 10, 2010 | Item | ShareThis
Zincore Signs Agreement to Add to Accha Zinc Oxide District Area Prospects - More
- June 10, 2010 | Item | ShareThis
Abacus Mining Announces Independent Recommendation in Favour of the Joint Venture with KGHM - More
- June 10, 2010 | Item | ShareThis
Eagle Acquires the "Lamotte" Lithium Deposit - More
- June 10, 2010 | Item | ShareThis
Gary Johnson appointed Director of Hard Creek Nickel Corporation - More
- June 10, 2010 | Item | ShareThis
Ethos Capital Corp. Commences Drilling at Corrales and Santa Teresa - More
- June 10, 2010 | Item | ShareThis
Nautilus Minerals Signs Contract for 2010 Drilling Program - More
- June 10, 2010 | Item | ShareThis
Orex Exploration Announces More Drill Results at Goldboro; Advances Regional Exploration Program - More
- June 10, 2010 | Item | ShareThis
Glass Earth Gold Closes Private Placement; $2.7 Million to Be Spent on Exploration - More
- June 10, 2010 | Item | ShareThis
Eagle Plains Announces Offer to Purchase Yellowjacket Project - More
- June 10, 2010 | Item | ShareThis
Santa Fe Gold Commissions Lordsburg Mill and Prepares to Ramp up Production from Summit Silver-Gold Mine - More
- June 10, 2010 | Item | ShareThis
Glass Earth Gold Announces Closing of First Tranche of C$3M Private Placement - More
- June 10, 2010 | Item | ShareThis
European Goldfields Limited - Group exploration update - More
- June 10, 2010 | Item | ShareThis
Strategic Resources Provides Activity Update - More
- June 10, 2010 | Item | ShareThis
European Goldfields Limited - Appointment of Nominated Advisor and Joint Brokers - More
- June 10, 2010 | Item | ShareThis
Volta Extends Gold Mineralization Further South At Its Kiaka Gold Project - More
- June 10, 2010 | Item | ShareThis
New Guinea Gold Announces Bulldozer/Excavator Benching by Gold Anomaly Commences at Crater Mountain Project, Papua New Guinea - More
- June 10, 2010 | Item | ShareThis
Rare Earth Metals Inc Announces the Optioning of Its Hinton Coal Project, Alberta - More
- June 10, 2010 | Item | ShareThis
007 Decline Approaches Zone as Drilling Extends the High Grade 007 Zone Upward to Surface and to Depth - More
- June 10, 2010 | Item | ShareThis
Banner Year for Teuton's Many Golden Triangle Claims - More
- June 10, 2010 | Item | ShareThis
Alto Ventures Ltd.: 8000m of Drilling Commences on the Coldstream Property, Ontario - More
- June 10, 2010 | Item | ShareThis
Queenston Initiates Drilling on Newly Acquired Vault-Lebel Property - More
- June 10, 2010 | Item | ShareThis
ATW Completes Sale of Burnakura Assets for AUD$5,000,000 - More
- June 10, 2010 | Item | ShareThis
Prize Mining Announces Proposed Divestment of its Remaining Interest in the Yellowjacket Project - More
- June 10, 2010 | Item | ShareThis
Rare Earth Metals Inc Announces the Optioning of Its Hinton Coal Project, Alberta - More
- June 10, 2010 | Item | ShareThis
Liberty Silver Begins Permitting and Surveys to Re-Open Trinity Silver Mine in Nevada - More
- June 10, 2010 | Item | ShareThis
Gold Resource Corporation Ships Additional Concentrates Nearing Commercial Production - More
- June 10, 2010 | Item | ShareThis
Tinka Commences IP Survey at Colquipucro in Peru - More
- June 10, 2010 | Item | ShareThis
SLAM and Beatrix complete first diamond drill hole - More
- June 10, 2010 | Item | ShareThis
Kaminak Step-Out Drilling Extends Latte and Supremo Zones Along Trend - More
- June 10, 2010 | Item | ShareThis
Otis Commences 6,000 Metre Drill Program at Kilgore - More
- June 10, 2010 | Item | ShareThis
Foundation Resources Commences 8,000 Metre Phase 2 Diamond Drilling Program at Coldstream - More
- June 10, 2010 | Item | ShareThis
Peregrine Drills 191 Metres of 0.96% Cu and 117 Metres of 0.92% Cu Including 74 Metres of 1.29% Cu at Altar - More
- June 10, 2010 | Item | ShareThis
Threegold Acquires New Gold Play: Barraute Project in Abitibi Region of Quebec - More
- June 10, 2010 | Item | ShareThis
Conway Resources Completes Acquisition of Rare Metals and Lithium Property Close to First Gold Exploration Discovery - More
- June 10, 2010 | Item | ShareThis
Marathon PGM Corporation: Corporate and Project Update - More
- June 10, 2010 | Item | ShareThis
INV Metals Announces Management Appointment - More
- June 10, 2010 | Item | ShareThis
INV Metals Announces Name Change and Board Appointments - More
- June 10, 2010 | Item | ShareThis
Habanero Commences Drill Program In Keno Hill Silver District of the Yukon - More
- June 10, 2010 | Item | ShareThis
European Goldfields announces Exploration Update - More
- June 10, 2010 | Item | ShareThis
Appointment of Nominated Advisor and Joint Brokers - More
- June 10, 2010 | Item | ShareThis
Orosur Mining Inc.: Southern Uruguay Project Farm Out - More
- June 10, 2010 | Item | ShareThis
Capital Gold Corporation Reports Revenue Up 41% For Third Fiscal Quarter - "Capital Gold Corporation (NYSE AMEX: CGC; TSX: CGC) today reported a 41% increase in revenue for the three months ending April 30, 2010 compared to the prior year period, as a result of higher gold prices and more ounces sold. Net income for the three months ended April 30, 2010 and 2009 was approximately $2,779 and $2,554, respectively, reflecting an increase of $225 or 9% over the prior period. Excluding a one-time severance related charges of $2,284, net income for the three months ended April 30, 2010 would have been approximately $5,063, representing an increase of $2,509 or 98% over the prior period." More
- June 10, 2010 | Item | ShareThis
Richmont Mines Announces Start of a 3,500 Metre Drilling Campaign on Its Cripple Creek Property - "Richmont Mines Inc. (TSX:RIC - News)(AMEX:RIC - News), ("Richmont" or the "Company") is pleased to announce complete assay results from its 2010 first phase surface drilling program at its 100%-owned Cripple Creek property, located west of the Timmins Gold Camp in Ontario. As a result of the promising results, Richmont plans to begin a second phase of surface drilling in the week of June 14, 2010. The program will include a total of approximately 3,500 metres (m) of drilling and will target the depth and lateral extension of Zone 16. A total of 6 holes are planned, all below a depth of 350 m, including a deepening of the previously drilled Hole CC-10-47, in order to confirm the extent of the alteration envelope. The Mahoney Zone will not be drilled in this phase, as surface conditions are more amenable to winter drilling. Results are expected in the fourth quarter of 2010." More
- June 10, 2010 | Item | ShareThis
Apogee Awards Contract for Environmental Baseline Studies and Monitoring at Pulacayo - "Apogee Minerals Limited ("Apogee" or "the Company") (TSX VENTURE:APE - News) today announces that it has awarded a contract to complete the environmental baseline studies required to secure permits for the proposed development of the Pulacayo deposit, located in southwest Bolivia, to Medio Ambiente Mineria e Industria, (Medmin)." More
- June 10, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here
Additional Resources for today’s Gold Seeker Report can be found:
© Gold Seeker 2010
Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.
Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.
-- Posted Thursday, 10 June 2010 | Digg This Article | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver End Mixed
