-- Posted Friday, 24 September 2010 | Digg This Article | | Source: GoldSeek.com
| Close | Gain/Loss | On Week |
Gold | $1296.30 | +$2.00 | +1.59% |
Silver | $21.37 | +$0.20 | +2.84% |
XAU | 197.08 | +0.34% | +2.82% |
HUI | 504.98 | +0.01% | +1.99% |
GDM | 1536.32 | -0.10% | +3.51% |
JSE Gold | 2556.98 | +20.93 | +1.14% |
USD | 79.28 | -0.80 | -2.63% |
Euro | 134.92 | +1.81 | +3.51% |
Yen | 118.67 | +0.13 | 1.83% |
Oil | $76.49 | +$1.31 | +3.84% |
10-Year | 2.612% | +0.057 | -4.88% |
Bond | 131.71875 | -1.00 | +0.14% |
Dow | 10860.26 | +1.86% | +2.38% |
Nasdaq | 2381.22 | +2.33% | +2.83% |
S&P | 1148.67 | +2.12% | +2.05% |
The Metals:
Gold rose to a new all-time high at $1299.77 by about 9:15AM EST before it fell back off a bit into the close, but it still ended with a gain of 0.15% at a new all-time closing high. Silver climbed to a new 30-year high of $21.431 before it also dropped a bit, but it still ended with a gain of 0.94%.
Euro gold fell to about €962, platinum lost $2.50 to $1636.25, and copper gained another few cents to about $3.61.
Gold and silver equities rose over 1% at the open, but they then fell back to about unchanged by midday and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | Aug | -1.3% | -1.4% | 0.7% |
Durable Orders -ex Trans. | Aug | 2.0% | 0.6% | -2.8% |
New Home Sales | Aug | 288K | 291K | 288K |
All of this week’s other economic reports:
Next week’s economic highlights include the Case-Shiller 20-city Index and Consumer Confidence on Tuesday, GDP, Initial Jobless Claims, and Chicago PMI on Thursday, and Personal Income and Spending, Core PCE Prices, Michigan Sentiment, Construction Spending, and the ISM Index on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as the U.S. dollar index and treasuries fell on better than expected economic data that sent the Dow, Nasdaq, and S&P about 2% higher.
Among the big names making news in the market Friday were Hertz, Ally, Cisco, Motorola, and Blockbuster.
The Commentary:
“Dear CIGAs,
I wonder if Johannes Gutenberg, the inventor of the printing press, ever realized that his marvelous device which ushered in a new era of knowledge dissemination, would someday also be used to create wealth out of thin air. Apparently he did not for if he had, it is doubtful that the world of his day and future days would have ever experienced economic hardship or ruin again.
Witness the marvelous effect of the newly created Fed “wealth” as it makes its way into the equity markets and the commodity markets, at the horrific expense of the Dollar, which has now crashed below the critical 80 level and looks like it is on its way down to 76.
There was a literal fund orgy of buying across almost every single market today shoving prices north as the reflation trade was on full display for all the world to gaze at in admiration. “Who is like the Fed and whom else may we bow down and worship” comes the cry from the investment world which is swimming in a sea of liquidity with future consequences to the generation to come being damned. All it cares for is a rising equity market and a short-sighted “feel good” psyche.
The sinking Dollar is even negating to a certain extent the massive intervention efforts of the Bank of Japan to curtail its rise. Last evening there was a bizarre event with the Yen which suffered a massive drop in price leading to rumors that the BOJ had come back into the Forex markets and sold yen. When the rumor was not confirmed by the finance ministers of that country, hedgies wasted no time and bid it right back up again completely erasing the losses and even adding more on to it just to apparently insult the BOJ.
The yen is becoming a serious political issue in Japan with politicians facing increasing pressure from their constituent businesses for the government to take action to force a drop in the currency. AS it now stands, the rising yen is crushing what little is left of the Japanese economy and is eliciting howls of protest from leading Japanese exporters who are furious over what is happening to their market share. The comments are all almost unanimous from the heads of business: “We are mired in a deflation and our economy is stagnant and there is no reason for the Yen to be rising so sharply. Speculators are leading the nation to ruin and the Bank of Japan must act now”.
I expect we are going to see them do just that as soon as next week. If they do not, the market has called their bravado and their reputation will be ruined seeing that they have made repeated statements that they intend to hold the line on the yen. Quite frankly, I am amazed at the boldness of the hedge fund crowd which continues to defy their intentions. Then again, maybe Chinese buying of Japanese bonds is too large for the Bank of Japan to deal with. I am not sure but after watching these Forex markets for years, I will be shocked if the BOJ does not foray forth and give the new Yen longs a severe butt whipping. If they do not, and the yen takes out its recent high, the BOJ will be finished as a market force.
The problem that they face is that the Fed is attempting to outdo them in ruining currencies and has printed trillions into existence. That is a lot of Dollar supply. The BOJ will simply have to print more than the Fed. Any wonder why gold is doing what it is doing and commodities are being siphoned into the holdings of big funds and institutions?
That brings us to the technical action in the metal – it is being stymied at $1300 by its enemies even as the rest of the commodity world goes beserk to the upside and silver makes a 30 year high! The same damn hedge fund ratio trade continues to lean on the mining shares in spite of record high prices in both metals. While the broad stock market is enjoying rip-roaring gains, the mining shares are languishing as if the metals were trading 20% of their peaks. You can thank the conjurers of those much heralded gold ETF’s for all this for they have siphoned off money that used to go into the shares into another paper gold market. Still, do not despair as gold and silver miners are making enormous profits on their chief product. It is still profits that drive stock prices even in this brave new world of hedge fund algorithms and the sadistic HFT crowd.
Gold will have to push above $1300 and hold that level to prevent some long liquidation as we are up near record levels on the open interest. We should be because we are at record levels in price. Momentum however rules the markets these days so it is up to the bulls to dislodge the perma bears (bullion banks) from behind their fortifications at $1300 if they hope to force a retreat to a new and higher level, closer to $1312- $1315.
Support still first lies near $1285 on any setback in price followed by better support at $1260. I would like to see how price acts on any setback to get a better feel for future price action.
Silver ran past its peak from early 2008 notching a 30 year high in the process which is simply breathtaking for the speed of its ascent. Should it be able to post a strong close above $21.50, look for it to make a runs towards $23. It has light chart support near $21 and better support back near $20.50 on the charts.
Nothing has changed for the HUI – it still needs to best the 520 level to see the shares accelerate higher. It is however working on its best weekly close since March 2008. It needs to hold above 493 to accomplish that task.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Competitive devaluations gain acceptance as justification for higher gold
Bank of Canada will follow Fed in any devaluation
Explosive short squeeze in gold and silver, Turk tells King World News
Robert Moore: Selling gold that grows on trees
Much money wants to buy dips in metals, Turk tells King World News
The Statistics:
Activity from: 9/23/2010
Gold Warehouse Stocks: | 10,816,609 | -129 |
Silver Warehouse Stocks: | 111,454,739 | +614,101 |
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 | 1301.433 | 41,842,377 | US$54,254m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 125.78 | 4,043,870 | US$5,242m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 127.74 | 4,106,938 | US$5,323m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 475,482 | US$592m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 48.86 | 1,570,819 | US$2,032m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,969 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 2.735 tonnes, the LSE added 0.36 tonnes, and the LSE ETFS subtracted 0.15 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 98.75 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9582.59: +73.04 change from yesterday’s data.
The Miners:
There were no big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Gold Reserve | GRZ+13.64% $1.25 |
2. Ivanhoe | IVN +6.14% $23.67 |
3. Taseko | TGB +4.87% $5.17 |
LOSERS
1. Almaden | AAU -5.49% $2.58 |
2. Eldorado | EGO-2.41% $18.25 |
3. Mag Silver | MVG -2.04% $7.67 |
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:
Xtierra Reports on Drilling at Bilbao - More
- September 24, 2010 | Item | ShareThis
Velocity Minerals Ltd. Announces Initial Results of Drilling at the Cassiar Moly Property - More
- September 24, 2010 | Item | ShareThis
Goldrush Announces Private Placement to Raise Up to $4,000,000 - More
- September 24, 2010 | Item | ShareThis
Radius Gold Inc. - Stock Options Granted - More
- September 24, 2010 | Item | ShareThis
Gold Canyon Negotiates New Lease; Amends Net Smelter Royalties Related to Certain Springpole Gold Project Claims - More
- September 24, 2010 | Item | ShareThis
Excalibur to Invest in Gold Production Company in the Pinos Gold District of Mexico - More
- September 24, 2010 | Item | ShareThis
Argentex Mining signs securities purchase agreement with IFC for equity investment of $7,347,200 - More
- September 24, 2010 | Item | ShareThis
Sunridge Private Placement - More
- September 24, 2010 | Item | ShareThis
Otis Retains Investor Relations Firm - More
- September 24, 2010 | Item | ShareThis
Iron Creek Capital Corp.: Stock Options Granted - More
- September 24, 2010 | Item | ShareThis
Wallbridge Mining Sells 683,800 of its 12.3 M shares of Duluth Metals to Raise $1.9 million - More
- September 24, 2010 | Item | ShareThis
YS Mining Announces Withdrawal of Cash Offer to Purchase All of the Outstanding Shares and Debt of Tagish Lake Gold Corp. - More
- September 24, 2010 | Item | ShareThis
Paladin Energy Ltd: Defeating Conditions Triggered Regarding Bid for NGM Resources Ltd - More
- September 24, 2010 | Item | ShareThis
Athabasca Uranium Closes on Webb River Option Phase 1 - More
- September 24, 2010 | Item | ShareThis
Match Capital Announces Results of Summer Field Program on Indian Lake Program, Schefferville Area of Quebec - More
- September 24, 2010 | Item | ShareThis
Golden Phoenix Enters Into Option Agreement to Repurchase 20,000,000 Warrants From Crestview Capital - More
- September 24, 2010 | Item | ShareThis
SLAM TO START TRENCHING AT SILVERJACK - More
- September 24, 2010 | Item | ShareThis
Xmet Inc. Reports 5.25 g/t Au over 16.5 Meters on Duquesne-Ottoman - More
- September 24, 2010 | Item | ShareThis
Solid Announces Payment of Finders' Fees On the Peru Gold and Copper Property - More
- September 24, 2010 | Item | ShareThis
West Kirkland Mining Adds to Board of Directors - More
- September 24, 2010 | Item | ShareThis
AQM Copper Inc. Continues to Expand Zafranal With Positive Drill Results - More
- September 24, 2010 | Item | ShareThis
GoldQuest Mining Corp.: Corporate Update and Appointment of New Chief Financial Officer - More
- September 24, 2010 | Item | ShareThis
Soltoro Step-Out Drilling Returns 259.7 Metres of 49.8 gpt Silver Including 87.5 Metres of 72 gpt Silver at the El Rayo Primary Silver Project in Mexico - More
- September 24, 2010 | Item | ShareThis
Huldra Silver Inc. Exploration and Development Update and Announcement of Warrant Exercise - More
- September 24, 2010 | Item | ShareThis
Molycorp Announces Successful Commercial Launch of Rare Earth-Based Water Purification Technology - More
- September 24, 2010 | Item | ShareThis
Midlands Minerals Corporation: Gold Results Indicate A Robust Down Plunge Extension of Sian Deposit to 230 Metres - More
- September 24, 2010 | Item | ShareThis
Mountain Lake Acquires 100% of Glover Island Gold Property in Western Newfoundland from New Island - More
- September 24, 2010 | Item | ShareThis
Rodinia Lithium Inc.'s Auger Drilling Extends Near Surface High-Grade Lithium-Potash Zone 1.5 km at Salar de Diablillos - More
- September 24, 2010 | Item | ShareThis
Phil Mason Appointed General Manager of Geovic Cameroon PLC; Nkamouna Project Update - More
- September 24, 2010 | Item | ShareThis
North American Nickel Inc. Announces its 2010 Sudbury, Ontario Exploration Plans; TSX Venture Application Submitted - More
- September 24, 2010 | Item | ShareThis
Salazar Intersects 8.85 Meters Averaging 5.83 g/t Gold, 179.62 g/t Silver, 8.07 % Copper, 0.85 % Lead and 6.33 % Zinc and Provides Corporate Update - More
- September 24, 2010 | Item | ShareThis
RockBridge Announces Rare Earth Findings and Successful Drill Program Continuation - More
- September 24, 2010 | Item | ShareThis
Minera IRL Declines to Exercise La Falda and Killincho Options - More
- September 24, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted Friday, 24 September 2010 | Digg This Article | Source: GoldSeek.com