-- Posted Thursday, 21 October 2010 | Digg This Article
| | Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $1324.80 | -$19.20 |
Silver | $23.24 | -$0.59 |
XAU | 196.48 | -1.16% |
HUI | 459.31 | -1.88% |
GDM | 1497.44 | -1.98% |
JSE Gold | 2513.17 | -13.29 |
USD | 77.46 | +0.25 |
Euro | 139.23 | -0.43 |
Yen | 122.94 | -0.33 |
Oil | $80.56 | -$1.98 |
10-Year | 2.531% | +0.061 |
T-Bond | 131.8125 | -0.84375 |
Dow | 11146.57 | +0.35% |
Nasdaq | 2459.67 | +0.09% |
S&P | 1180.26 | +0.18% |
The Metals:
Gold climbed $4 to $1348.00 in London before it fell to $1336.40 in early New York trade and then rebounded back to $1346.56 at around 10AM EST, but it then dropped off rather markedly for most of the rest of trade and ended near its late session low of $1320.00 with a loss of 1.43%. Silver climbed to $24.001 in London before it also fell back off in New York and ended near its late session low of $23.087 with a loss of 2.48%.
Euro gold fell to about €950, platinum lost $22.25 to $1667.50, and copper fell slightly to about $3.78.
Gold and silver equities fell about 2% by midmorning and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 10/16 | 452K | 455K | 475K |
Leading Indicators | Sep | 0.3% | 0.3% | 0.1% |
Philadelphia Fed | Oct | 1.0 | 1.4 | -0.7 |
Banks Face Two-Front War on Bad Mortgages, Foreclosures Bloomberg
Mobile Talent in Short Supply as Employers Seek to Fill Jobs Bloomberg
Geithner gambit on imbalance targets falls flat Reuters
There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell as the U.S. dollar index rose and treasuries fell on doubts about quantitative easing.
The Dow, Nasdaq, and S&P mostly rose on better than expected earnings reports.
Among the big names making news in the market today were Netflix, Mattel, Union Pacific, Lilly, Glaxo, EBay, Novartis, Caterpillar, Travelers, Janus, UPS, McDonald’s, AT&T, Dell, Nokia, Microsoft, and Toyota.
The Commentary:
“My Dear Friends,
The weakness that the shorts on the Comex have taken advantage of is the many comments, almost every day, by highly placed people around the world stating that the Fed is making a huge error by utilizing QE.
The dollar today has not rallied enough to account for the gold price decline. The 30 Year Treasury Bills indicate that economic news is not a factor.
What you need to focus on is the fact that the Federal Reserve has no other option but to go with QE to infinity.
QE never ended, it only became camouflaged through the methods it was utilized such as guaranteeing everything in sight.
What the market anticipates is more on the down low commentary by the Fed concerning QE. Remember that the Fed sees things within the US financial system that even other governments cannot such as the real risk of the rollover of securitized mortgage debt OTC derivative instruments.
You are witnessing the beginning of a period in the gold price that will be marked by totally outrageous volatility. I have told you many times I have no doubt whatsoever about gold trading at $1650.
Historically I have done well with price objectives on gold. I will do well this time around. If I had any concern it would be that I am much too conservative in my objectives.
Bert Seligman had a great lesson to teach when he said "The weak succumb, the strong survive."
From me personally to you, stand strong!
Regards,”- Jim Sinclair, JSMineset.com
“Dear CIGAs,
Gold’s rather lackluster performance yesterday in the face of both a sharp Dollar fall and a huge surge in the Euro can be explained by the open interest figures released by the Comex this AM which showed a good sized drop of over 10,000 contracts in the active December contract. Gold bears could not break it down below $1,330 so they covered but longs apparently used the rally to lighten up on some of their positions. Translation – the fresh buying power needed to take it higher and get it above $1,350 was lacking. Apparently some of the weaker handed longs are having doubts especially after the big plunge of Tuesday.
This became evident in today’s session where gold ran into selling on the rally up bringing in some additional long side liquidation. Stability in the Dollar is working against some of the more fickle longs and has them heading for the exits. Unfortunately, that is exactly what the shorts having been trying to induce since they lack the firepower to push the market lower on their own. As stated yesterday, all that is necessary for to force the shorts out of the gold market is for the longs to just sit there and do nothing. But alas, ‘twas was not meant to be.
In looking across the entire spectrum of the commodity markets this morning, most of them are seeing selling pressure as once again we are back to the: “Dollar higher – we need to sell” or “Dollar lower – we need to buy” trading “strategy”. The Dollar does not seem to be particularly strong but it is also not falling either and that has spooked some longs out of the commodity sector in general. They’ll snatch profits now and wait for another chance to get back in later, presumably after another Dollar selling binge commences.
Basically what things have come down to for the time being is the amount and timing of the Fed’s next QE program. Depending on the mood of the day, the Dollar alternately sees buying or selling. You can see this process especially well in the crude oil market. It soars, then plunges, then soars and then plunges again. Up and down, back and forth, it is following the QE trade making pretty much meaningless gyrations in price. About the only effective thing it has been doing is shredding traders to pieces. Floor locals are making money however as they love these kinds of markets. After all, who needs to sleep when you can plunder the small specs and put your kids through college on the proceeds of their largesse!
The dollar is attempting to hold or put in a temporary bottom near and slightly above the 77 level on the USDX. Perhaps there is some second guessing going on in regards to that QE program. That is about the only thing that I can come up with for the time being to explain the stability. It is probably a scenario where they have already baked things into the pie and now everyone is sitting around waiting to see how the finished product looks.
The HUI fell flat on its face again as once again the hedge funds whacked it down. Its failure to hold above the 500 level is disappointing as it is sitting tenuously right on the 50 day moving average. There is additional chart support near the 480 level. If for some reason it were to fail there, you are probably looking at 465 or so. That would pretty much erase the gains of the last two months so there would have to be some very Dollar friendly news coming from some quarter to justify pushing them down that low.
Equities were barely higher and bonds were barely lower. About the only thing moving up was the Dollar (and cotton of course). Not sure what to make of today as it really is about money flows only so I am not reading too much into the action of the broader markets. I still think we are stuck in some sort of holding pattern while waiting for the FOMC to act in early November. The economy stinks, further QE is coming, the Dollar is being ruined and gold is going to go higher. For now, we just let the short term technical gyrations shove things around in pretty much meaningless activity.
As I have written to over a hundred email inquiries by now, decide on whether or not you want to be a trader or an investor. If you are an investor, use the dips in price to acquire value and ride the trend until it is exhausted. That will be when the Dollar is fixed (good luck on that). If you are a trader, you can play the game along with the hedge funds but just be careful that you do not end up becoming road pizza.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Retiring CFTC judge says colleague biased against complainants
New York Fed faces 'inherent conflict' in mortgage buybacks
Where's the FT story about 'speculators' buying government bonds?
Rare earth prices soar even as China pledges supply
Chinese silver exports expected to plunge, diverted by investment demand
The Statistics:
Activity from: 10/20/2010
Gold Warehouse Stocks: | 11,174,283 | -193 |
Silver Warehouse Stocks: | 112,137,077 | +287,925 |
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 | 1299.177 | 41,769,841 | US$56,104m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 126.98 | 4,082,599 | US$5,436m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 130.02 | 4,180,170 | US$5,566m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 475,344 | US$605m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 49.33 | 1,585,975 | US$2,124m |
NASDAQ Dubai | Dubai Gold Securities | 0.154 | 4,967 | US$7m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.912 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 102.29 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,224.05 - No change from yesterday’s data.
The Miners:
Randgold’s (GOLD) shipment of medical supplies, Freeport’s (FCX) third quarter results and dividend increase, Allied Nevada’s (ANV) drill results, and Revett’s (RVM.TO) operations and development update were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Banro | BAA +6.32% $2.86 |
2. Almaden | AAU +1.95% $2.61 |
3. Golden Minerals | AUMN+1.38% $22.00 |
LOSERS
1. Seabridge | SA -7.65% $25.95 |
2. Allied Nevada | ANV -6.96% $22.46 |
3. Claude | CGR -5.84% $1.45 |
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:
Armadillo to Acquire Brazilian Mineral Claims with Gold Potential - More
- October 21, 2010 | Item | ShareThis
MONETA COMPLETES $1.5 MILLION FINANCING - More
- October 21, 2010 | Item | ShareThis
Sniper to Commence Trading on TSX Venture Exchange - More
- October 21, 2010 | Item | ShareThis
Golden Queen Initiates Drill Program on the Soledad Mountain Property - More
- October 21, 2010 | Item | ShareThis
Riverstone Dramatically Expands Goulagou I Deposit at Karma - More
- October 21, 2010 | Item | ShareThis
St. Eugene Mining Corporation Announces Private Placement - More
- October 21, 2010 | Item | ShareThis
Gryphon Gold Road to Production - More
- October 21, 2010 | Item | ShareThis
Kilo's 960 Metre Step-Out Drill Hole Intersects 11.45 Metres Grading 3.33 g/t Gold, on the Adumbi Prospect, Somituri Project, DRC - More
- October 21, 2010 | Item | ShareThis
St. Elias Mines Ltd. Completes Independent 43-101 Technical Report on the Tesoro Gold Project, Peru - More
- October 21, 2010 | Item | ShareThis
GALWAY INTERCEPTS 34.5 METERS OF 4.1 G/T, 6.0 METERS OF 39.5 G/T AND 15.5 METERS OF 3.8 G/T GOLD IN THE PIE DE GALLO OPEN PIT - More
- October 21, 2010 | Item | ShareThis
Ensurge Announces Progress on Engineering Scoping Study of Brazilian Gold Mine - More
- October 21, 2010 | Item | ShareThis
TVI Begins Drilling on Near-Surface Prospects at Siennalynn and Provides Operational Update - More
- October 21, 2010 | Item | ShareThis
Fancamp Adds New Member to Advisory Board - More
- October 21, 2010 | Item | ShareThis
First Gold Acquires a 100% Interest in the Pivert/Rose Property - More
- October 21, 2010 | Item | ShareThis
Olympus Completes Placement - More
- October 21, 2010 | Item | ShareThis
Medusa Mining Limited: Publication of Prospectus & Cancellation of Trading on AIM - More
- October 21, 2010 | Item | ShareThis
ATLANTA GOLD MAKES KEY APPOINTMENT TO ITS BOARD AND MANAGEMENT - More
- October 21, 2010 | Item | ShareThis
Aldrin Reports on Expanded Keystone Project - More
- October 21, 2010 | Item | ShareThis
Forum Purchases 100% Interest in Tanqueray Claims at the North Thelon Project, Nunavut - More
- October 21, 2010 | Item | ShareThis
Bonterra Commences Drilling on Eastern Extension Property Quebec - More
- October 21, 2010 | Item | ShareThis
Ardent Mines Announces the Signing of a Memorandum of Understanding to Purchase Gold Reserves in Brazil - More
- October 21, 2010 | Item | ShareThis
Magma Metals Limited Quarterly Report for the Period Ended September 30, 2010 - More
- October 21, 2010 | Item | ShareThis
Labec Century Iron Ore Start Diamond Drilling Program on Champion Minerals' Attikamagen Iron Property, Schefferville Mining District - More
- October 21, 2010 | Item | ShareThis
Laurion Announces Intention to Trade on the OTCQX - More
- October 21, 2010 | Item | ShareThis
Golden Hope Announces New Bulk Sampling Program at the Bellechasse-Timmins Gold Deposit Across Three Zones to Further Determine and Confirm Average Grade - More
- October 21, 2010 | Item | ShareThis
Athabasca Uranium Acquires McGregor Lake Property Option - More
- October 21, 2010 | Item | ShareThis
Star Gold Corp. Appoints New Chief Financial Officer - More
- October 21, 2010 | Item | ShareThis
Amerigo Reports New Record Quarterly Copper Production - More
- October 21, 2010 | Item | ShareThis
Q-GOLD ANNOUNCES RESUMPTION OF MCKENZIE GRAY GOLD/SILVER DRILLING PROGRAM - More
- October 21, 2010 | Item | ShareThis
Wealth Initiates Exploration at Argentina's Largest Undeveloped Rare Earth Deposit-The 'Rodeo de los Molles' Project in San Luis Province, Argentina - More
- October 21, 2010 | Item | ShareThis
Spanish Mountain Announces Assay Results From Thunder Ridge Project: Gold System Now Extends East Beyond Defined Soil Geochemical Gold Anomaly - More
- October 21, 2010 | Item | ShareThis
First Liberty Power Announces Lida Valley Site Visit by Company Management, Advisors and Operator - More
- October 21, 2010 | Item | ShareThis
PREMIER - RED LAKE DRILLING EXTENDS WILMAR MINE HORIZON - ASSAYS INCLUDE 6.06 oz/ton Gold - More
- October 21, 2010 | Item | ShareThis
Dr. Anthony Mariano Joins Pele Mountain's Rare Metals Advisory Board - More
- October 21, 2010 | Item | ShareThis
Comstock Mining Raises $35.75 Million in New Equity - More
- October 21, 2010 | Item | ShareThis
Trijet Mining Expands the Size of Letourneur Property to Cover New Target Areas - More
- October 21, 2010 | Item | ShareThis
Caledonia Mining Announces the Commissioning of the No. 4 Shaft Project - More
- October 21, 2010 | Item | ShareThis
Goldeye Advised Priority Drill Targets Identified on Juby JV Property - More
- October 21, 2010 | Item | ShareThis
Grayd Announces Completion of PEA on La India Gold Project; 51% IRR and US$187 Million NPV 5% - More
- October 21, 2010 | Item | ShareThis
Sunridge Gold Selects Senet to Conduct Feasibility Study on the Debarwa Project, Eritrea - More
- October 21, 2010 | Item | ShareThis
Cadillac Ventures Inc.: Assay Results from San Eduardo, San Platon Update - More
- October 21, 2010 | Item | ShareThis
Currie Rose Resources Inc.: Drilling to Commence in Tanzania - More
- October 21, 2010 | Item | ShareThis
East Asia Extends Miwah Main Zone 200 Metres to East Block M With 165.7 Metres of Gold Mineralization; and Commences Drilling Extension to High-Grade EMD024 - More
- October 21, 2010 | Item | ShareThis
GLADSTONE PACIFIC NICKEL LIMITED (ACN 104 261 887) - Resignation of Nominated Adviser - More
- October 21, 2010 | Item | ShareThis
Kiska Reports Copper and Gold Recoveries From Initial Metallurgical Studies at Island Mountain Prospect, Whistler Project, Alaska - More
- October 21, 2010 | Item | ShareThis
Terra Ventures Inc.: Hathor's Roughrider East Delivers Best Hole to Date, Intersecting 63.5 m of 7.75 % U3O8, Including a 17.5 m Interval of 24.3 % U3O8 - More
- October 21, 2010 | Item | ShareThis
Taku Progresses With Geophysical and Geochemical Surveys in White Gold Area of Yukon - More
- October 21, 2010 | Item | ShareThis
Energizer Resources Announces Appointment of Richard Quesnel to Board of Directors - More
- October 21, 2010 | Item | ShareThis
Otish Energy Commences Social Media Program - More
- October 21, 2010 | Item | ShareThis
Vena Resources Increases Polymetallic Assets Near Azulcocha Mine and Sells Asset to Sienna Gold - More
- October 21, 2010 | Item | ShareThis
Pelangio Exploration Recommences Drilling at the Manfo Property - More
- October 21, 2010 | Item | ShareThis
JOURDAN Acquires 21 Additional Strategic Claims Contiguous to its New Recent Discovery Zone With Assays Up to 1.88% Li2O (Lithium Oxide)... - More
- October 21, 2010 | Item | ShareThis
Williams Creek Explorations Limited Receives Approval for Barkerville Mountain Diamond Drilling Program - More
- October 21, 2010 | Item | ShareThis
Canadian gold miners set for a glittering quarter - "Canadian gold miners are expected to report a sharp jump in quarterly profits in coming weeks, though cost increases and foreign exchange rates are likely to limit the benefits of record bullion prices." More
- October 21, 2010 | Item | ShareThis
Greece to rule on European Goldfields by Feb-source - More
- October 21, 2010 | Item | ShareThis
Brazil holds up mining bill, eyes royalty change - "Brazil's government will likely wait at least until the next administration takes office in 2011 before changing mining law and royalties, a government official told Reuters." More
- October 21, 2010 | Item | ShareThis
Crowflight Announces September Production Results; Appoints Rick Sproule as Vice President of Geology - More
- October 21, 2010 | Item | ShareThis
Hathor's Roughrider East Delivers Best Hole to Date: 63.5 m of 7.75% U3O8, Including a 17.5 m Interval of 24.3% U3O8, With Assays as High as 87.2% U3O8 - More
- October 21, 2010 | Item | ShareThis
Reservoir Capital Corp.: Agreement Completed with Orogen to Advance Deli Jovan Gold Project in Serbia - More
- October 21, 2010 | Item | ShareThis
Mineral Mountain Preps "Golden Sylvia Zone" For Drilling in the Copper Hill "Main Block" Gold Property Shining Tree Area, Ontario - More
- October 21, 2010 | Item | ShareThis
Lara Options Liberdade Copper Project to Codelco - More
- October 21, 2010 | Item | ShareThis
Colossus Minerals Step Out Drilling at Serra Pelada Extends the Central Mineralized Zone Onto New Ground - More
- October 21, 2010 | Item | ShareThis
Rockridge Outlines 10km Gold-In-Soil Anomaly at Fatou Gold Project, Mali - More
- October 21, 2010 | Item | ShareThis
Formation Drills Cobalt Project to Optimize Mine Design - More
- October 21, 2010 | Item | ShareThis
American Rare Earths & Materials Announces Its Entry Into the Industrial Market for Rare Earth Metals - More
- October 21, 2010 | Item | ShareThis
Final Due Diligence of the Goldrea/Rushan Gold Project With European Fund in China - More
- October 21, 2010 | Item | ShareThis
Spectral Adds Members for Advisory Board - More
- October 21, 2010 | Item | ShareThis
Miner Freeport's profit up 30 pct, shares rise - "Freeport-McMoRan Copper & Gold Inc (FCX.N) beat Wall Street estimates with a 30 percent jump in third-quarter profit on soaring prices for gold and other metals.
The company, whose shares rose 3 percent in premarket trading, also raised its annual dividend to $2.00 per share from $1.20.
Freeport said it was increasing copper production in response to improved markets, including resumption of mining at its Chino mine in New Mexico. Chino operations were suspended in late 2008 in response to the global economic downturn." More
- October 21, 2010 | Item | ShareThis
Revett Provides Q3 Operations and Development Update - "Revett Minerals Inc. ("Revett" or the "Company") (TSX:RVM - News; OTCBB:RVMIF - News) is pleased to announce improved head grades and reduced operating unit costs during the third quarter of 2010. Mill feed averaged 3,914 stpd for the three months ended September 30, 2010 with metal grades of 0.95 opt Ag and 0.44% Cu. This represents overall improved grades of 35% over the second quarter of 2010." More
- October 21, 2010 | Item | ShareThis
Randgold- Vital medical supplies reach Doko in DRC - "A shipment ofvital medical equipment and supplies was handed over today to the DurbaReferral Hospital and the Gambella Clinic in Watsa in the Haut-Ueledistrict of the DRC close to the Kibali Gold Project by projectdeveloper Randgold Resources." More
- October 21, 2010 | Item | ShareThis
Freeport-McMoRan Copper & Gold Inc. Announces Increase in Annual Common Stock Dividend to $2.00 Per Share - "Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX - News) announced today that its Board of Directors has authorized an increase in its annual common stock dividend from $1.20 per share to $2.00 per share. Dividends are paid quarterly as declared by the Board with the initial quarterly dividend of $0.50 per share expected to be paid in February 2011." More
- October 21, 2010 | Item | ShareThis
Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2010 Results - "Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX - News) reported third-quarter 2010 net income attributable to common stock of $1.2 billion, $2.49 per share, compared with net income of $925 million, $2.07 per share, for the third quarter of 2009. For the nine months ended September 30, 2010, FCX reported net income attributable to common stock of $2.7 billion, $5.88 per share, compared with $1.6 billion, $3.70 per share, in the 2009 nine-month period." More
- October 21, 2010 | Item | ShareThis
Allied Nevada Drills 166 Meters Grading 1.51 g/t Gold Equivalent at Hycroft - "Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX:ANV - News)(AMEX:ANV - News) is pleased to provide an update to recent Vortex Zone step out drilling, including highlights from three newly drilled holes at its wholly owned Hycroft mine located near Winnemucca, Nevada. Highlights from the three holes include 166 meters grading 1.51 g/t AuEq (0.46 g/t Au and 59 g/t Ag), 182 meters grading 1.12 g/t AuEq (0.58 g/t Au and 31 g/t Ag) and 111 meters grading 1.12 g/t AuEq (0.26 g/t Au and 49 g/t Ag)." More
- October 21, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted Thursday, 21 October 2010 | Digg This Article | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Roughly 2%
