-- Posted Friday, 18 June 2010 | Digg This Article
| | Source: GoldSeek.com
| Close | Gain/Loss | On Week |
Gold | $1256.65 | +$9.75 | +2.32% |
Silver | $19.11 | +$0.37 | +4.71% |
XAU | 185.62 | +1.78% | +5.88% |
HUI | 493.73 | +2.26% | +6.83% |
GDM | 1490.66 | +2.02% | +6.38% |
JSE Gold | 2593.07 | -0.35 | +3.46% |
USD | 85.58 | -0.08 | -2.06% |
Euro | 123.80 | UNCH | +2.33% |
Yen | 110.17 | +0.28 | +0.99% |
Oil | $77.18 | +$0.39 | +4.61% |
10-Year | 3.223% | +0.033 | +0.22% |
Bond | 124.46875 | -0.4375 | -0.18% |
Dow | 10450.64 | +0.16% | +2.35% |
Nasdaq | 2309.80 | +0.11% | +2.95% |
S&P | 1117.51 | +0.13% | +2.37% |
The Metals:
Gold climbed to a new record intraday high of $1262.30 by early afternoon in New York before it fell back off a bit in the last hour of trade, but it still ended at a new record closing high with a gain of 0.78%. Silver ended near its noontime high of $19.263 with a gain of 1.97%.
Euro gold rose to about €1016, platinum gained $16 to $1583.50, and copper fell a couple of cents to about $2.88.
Gold and silver equities rose about 2% by early afternoon and remained near their highs into the close.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as the U.S. dollar index and treasuries fell on continued economic optimism that kept the Dow, Nasdaq, and S&P mostly slightly higher on the day.
Among the big names making news in the market Friday were Facebook, Citigroup, Bank of America, CVS Caremark and Walgreen, AIG, and BP.
The Commentary:
“Dear CIGAs,
Gold shot up to a brand new record high in US Dollar terms in today’s session as it continues moving higher on its own merits. It did not especially matter what the Euro or the Dollar seemed to be doing today as both were rather quiet compared to recent volatility that has marked those pits; nevertheless, gold powered through the capping efforts of the banks at $1,250 on good volume forcing some of the fresh shorts encouraged by some CTA’s and other advisory newsletters out of the market. It would seem that gold is becoming a star in its own right as crude oil was tame today as was the bond market and the equity markets. In other words, the typical “outside influences” were missing that tend to impact gold leaving the larger macroeconomic forces the main factor in gold’s performance. Clearly investors who have deep misgivings about the current state of the global economy, particularly the West and its increasingly unsustainable burden of indebtedness, want to own the metal.
Silver saw additional upside follow through after yesterday’s breaking out from its congestion zone with the market in a technical position to mount a challenge of the $20 zone.
With both gold and silver moving higher alongside the HUI, metals bulls are pleased to see the train carrying all the passengers in the same direction for a change. I might add here that the HUI is outperforming gold on a percentage basis today but pretty much in sync with silver on that same percentage basis. It looks like some of those ratio spreads are being lifted off of the gold/gold shares trade which is encouraging particularly since the S&P 500 is not especially strong today. We might just be seeing some preliminary signs that the profitability of that trade is coming to an end for the hedgies. From looking at the chart, it does appear that the HUI will need to take out 500 – 502 in a big way to see a much larger unwinding of those trades. If it does, and that is going to be tough resistance, the shares will more than likely see much sharper gains as a goodly amount of those short legs are going to be in deep trouble.
See the ratio chart to get a view of the performance of that trade.
Open interest saw a significant increase in yesterday’s run towards $1,250. It shot up an astonishing 27,000 contracts! That tells us two things – first – there were very serious buyers at work which is why the market was able to break out of its congestion pattern below $1,245. Second – the reason it did not take out $1,250 was because the bullion banks threw everything but the kitchen sink at it to hold it below $1,250. You would have to sit and watch these markets each and every day, tick by tick, to get a feel of how many bids were absorbed by the bullion banks. What is even more astonishing however is that the market plowed right through this plethora of offers at $1,250 as if they did not exist in today’s session. Clearly, something is changing in the gold market as the big kids on the block are not able to successfully hold off the charging of the bulls in the manner that they are accustomed to.
Still, it is mind-boggling that some seller/sellers would fight so hard to absorb so many bids when they could merely sit back and institute a nice, scale-up selling program to take advantage of the determination of all these new buyers, guaranteeing themselves a good selling price for their gold. Instead, they fight like hell to ensure that they sell their gold at a lower price. That is all that I need to tell me that the selling is not true commercial hedging but is rather intended to contain upward price movement. No one who wants to maximize their selling price trades like this, no one. Speculators do this all the time – but NOT TRUE HEDGERS. Keep in mind that there are two levels of margin requirements; one for speculators and another for hedgers, which is lower. That allows a hedger to control the same number of contracts as a speculator but with FAR LESS MONEY. That is why the Comex stinks to high heaven. Everyone and their brother, with a lick of common sense, understands that the bullion banks get hedging margin rates but are acting like speculators as to the manner in which they sell.
Since we are now into uncharted territory on the nominal price chart in gold, pegging resistance areas will be bit more challenging. It looks to me like we have today’s high as the first new level of selling resistance followed by another layer up near the $1,280 level. Should gold be able to plow through $1,280, it will move to $1,300 in short order as we will see an upside acceleration due to more shorts getting squeezed.
It will be interesting to see what this afternoon’s Commitment of Traders report tells us of the state of the gold market through Tuesday of this week as far as the positioning of the players goes and exactly how many of these shorts are weak hands.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Gold not a currency and doesn't pay interest? In Vietnam it is and does
Jeff Nielson: 50 years of silver price suppression make default inevitable
Hugo Salinas Price: The gold standard is the generator and protector of jobs
Hinde Capital's gold report draws on GATA's work
The Statistics:
Activity from: 6/17/2010
Gold Warehouse Stocks: | 10,794,999 | -431 |
Silver Warehouse Stocks: | 117,694,804 | -600,295 |
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 | 1307.963 | 42,052,307 | US$52,805m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 122.49 | 3,938,116 | US$4,965m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 475,981 | US$574m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 48.18 | 1,549,045 | US$1,912m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,974 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 1.826 tonnes to a new record high holding and the LSE subtracted 0.82 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 84.96 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9208.83 - No change from yesterday’s data.
The Miners:
Gammon Gold’s (GRS) completed option agreement and Richmont’s (RIC) approved amalgamation were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Coeur | CDE+7.01% $16.80 |
2. NovaGold | NG +6.51% $7.36 |
3. Northgate | NXG +6.46% $3.13 |
LOSERS
1. Fronteer | FRG-9.71% $6.23 |
2. Gammon | GRS-8.85% $6.18 |
3. Minefinders | MFN-7.12% $8.74 |
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:
Plexmar Resources Inc.: Private Offering - More
- June 18, 2010 | Item | ShareThis
SLAM and Beatrix Complete Diamond Drilling Program for Gold - More
- June 18, 2010 | Item | ShareThis
Amseco Exploration Ltd.: Annual and Special Meeting of the Shareholders and Nomination of an Additional Director - More
- June 18, 2010 | Item | ShareThis
Alturas Minerals Announces Results of Annual General Meeting - More
- June 18, 2010 | Item | ShareThis
Tirex Exploration Update - More
- June 18, 2010 | Item | ShareThis
Capella Cancels Options to Purchase Up to 2,230,000 Shares - More
- June 18, 2010 | Item | ShareThis
NWM Mining Corporation Announces Repayment of US $1.1M Convertible Debenture and Voting Results of Shareholder Meeting June 17, 2010 - More
- June 18, 2010 | Item | ShareThis
Navina Asset Management Endorses Anaconda's Bid for New Island Resources - More
- June 18, 2010 | Item | ShareThis
Northern Star Announces Corporate Update - More
- June 18, 2010 | Item | ShareThis
Wallbridge Mining Announces Extension of Expiry Term of Warrants - More
- June 18, 2010 | Item | ShareThis
West Kirkland Mining Announces Closing of Private Placement - More
- June 18, 2010 | Item | ShareThis
Gammon Gold Completes Strategic Option Agreement with Valdez Gold Inc. for the Los Jarros Properties in the Ocampo-Pinos Altos Region - "Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): announces that it has executed a binding Letter of Intent that will give Gammon the option to acquire the 43,229 hectare block of mineral concessions called the "Los Jarros" Properties from Valdez Gold Inc. Under the terms defined in the Letter of Intent, Gammon will have the option to purchase a 100% interest in the properties, through a series of successive payments within 48 months of the date of the agreement." More
- June 18, 2010 | Item | ShareThis
Valdez Gold to Sell Its Los Jarros and Jarros Norte Properties in Chihuahua, Mexico to Gammon Gold - More
- June 18, 2010 | Item | ShareThis
The Shareholders of Louvem Mines Approve the Amalgamation With A Wholly-Owned Subsidiary of Richmont Mines - "Louvem Mines Inc. (TSX-V:LOV - News) ("Louvem" or the "Company") announces that at its annual and special general meeting of shareholders held today, the holders of the majority of the shares of Louvem, excluding those held by Richmont Mines Inc. ("Richmont"), have approved the amalgamation of Louvem and 9222 - 0383 Quebec inc., a wholly-owned subsidiary of Richmont (the "Amalgamation")." More
- June 18, 2010 | Item | ShareThis
James Bay Resources Announces Extension of Warrants - More
- June 18, 2010 | Item | ShareThis
Benton Announces Normal Course Issuer Bid - More
- June 18, 2010 | Item | ShareThis
Cache Expands Louil Hills Rare Earth Property - More
- June 18, 2010 | Item | ShareThis
Northern Star Announces Corporate Update - More
- June 18, 2010 | Item | ShareThis
Carlisle Goldfields Limited (CNSX: CGJ) Begins Trading on the Canadian National Stock Exchange - More
- June 18, 2010 | Item | ShareThis
Bella Viaggio and KAT Exploration to Begin Handcamp Drilling on June 28, 2010 - More
- June 18, 2010 | Item | ShareThis
Bison Gold Resources Inc. Provides Exploration Update - More
- June 18, 2010 | Item | ShareThis
EurOmax appoints John Cook as a director; Reschedules annual meeting - More
- June 18, 2010 | Item | ShareThis
Fire River Gold Announces 67 g/t (1.95 opt) Gold Over 6.3 m (20.7 ft) Nixon Fork, Alaska - More
- June 18, 2010 | Item | ShareThis
Gabriel Resources Announces Changes to Its Board of Directors - More
- June 18, 2010 | Item | ShareThis
Highland Offers to Acquire 49% Interest in Rickaby Property for $250,000 and 1.8 Million Shares of Highland - More
- June 18, 2010 | Item | ShareThis
Hana Mining Expands Banana Zone at Ghanzi Copper-Silver Project by 7 Kilometres - More
- June 18, 2010 | Item | ShareThis
Galantas Announces New General Manager at Omagh Gold Mine - More
- June 18, 2010 | Item | ShareThis
RT Minerals Corp. announces drilling has commenced at West Timmins, Ontario - More
- June 18, 2010 | Item | ShareThis
Ruby Creek Resources to Host Conference Call on June 22, 2010 at 11:00 EDT to Discuss the Mkuvia Gold Project and Other Developments - More
- June 18, 2010 | Item | ShareThis
Bridgeport Ventures Inc. Drilling Update - More
- June 18, 2010 | Item | ShareThis
Marathon Files Geordie Lake NI 43-101 Technical Report - More
- June 18, 2010 | Item | ShareThis
Genco Resources Ltd.: Update Letter to Shareholders - More
- June 18, 2010 | Item | ShareThis
Richmont Mines Inc. Announces Acquisition of Outstanding 30% of Louvem Approved by Louvem Shareholders - "Richmont Mines Inc. ("Richmont" or the "Company") (TSX:RIC - News)(AMEX:RIC - News) is pleased to announce that its proposed acquisition of 30% of the issued and outstanding shares of Louvem Mines Inc. ("Louvem") (TSX Venture Exchange:LOV - News) not currently owned by Richmont, through an amalgamation (the "Transaction"), has been approved by the shareholders of Louvem at an annual and special meeting of the shareholders of Louvem held earlier today." More
- June 18, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted Friday, 18 June 2010 | Digg This Article | Source: GoldSeek.com
Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 2% and 4% on the Week
