Gold fell $37.69 to as low as $1514.71 by late morning in New York before it bounced back higher in the last couple of hours of trade, but it still ended with a loss of 2.1%.Silver slumped to as low as $34.797 and ended with a loss of 4.34%.
Euro gold fell to about €1071, platinum lost $56.50 to $1692.50, and copper fell 5 cents to about $4.04.
Gold and silver equities fell over 3% by midmorning before they rebounded in late trade, but they still ended with about 1% losses.
Tomorrow at 8:30AM EST brings first quarter GDP expected at 1.8%, the GDP Deflator expected at 1.9%, and Durable Goods Orders for May expected at 1.5%.Excluding Transportation, orders are expected at 0.7%.
Treasuries rose as the Dow and S&P mostly fell on poor jobs data and plummeting commodity prices, but the Nasdaq was able to find some late session gains on hopes that consumers will get some relief from falling prices.
Among the big names making news in the market today were the LSE, Nissan, Oracle, Lennar, Yahoo, and Porsche.
The Commentary:
“What a difference a single day can make! Yesterday, gold managed to punch through $1550 and close above that level at the end of pit session trading but as the afternoon wore on, it slowly slid lower and inched closer to $1550 once again. As the market opened for early Kangaroo trading, it then fell back below $1550 and remained a tad weaker throughout early Asian trading. That all came to an abrupt end when news hit the wires that the US was releasing some 30 million barrels of oil from its Strategic Petroleum Reserve (SPR).
Crude oil immediately swooned falling below $90 (it has since recovered). As it did, the hedge fund algorithms kicked in and began unloading commodities across the board. If that were not enough, the Jobless Claims number reminded the entire planet why those who were filling our ears with their nauseating talking points of "Green Shoots" some months ago, should have to do mandatory community service on the Discovery Channel's, "Dirty Jobs" show. The number was terrible.
That sent the risk aversion trades into high gear and out the window went everything that did not resemble a US paper IOU or the Dollar. IN looking across my quote screens this morning, the only commodity on the planet that I can see which is currently showing green is the Cocoa market. Everything else is in the red. Time to hoard chocolate.
The result of this hedge fund carnage has been to send the CCI (Continuous Commodity Index) crashing down to major chart support just below 630 and the S&P 500 to within a few whiskers' width of the psychologically and technically significant chart support level of 1250. If the CCI and the S&P crash through those levels the Fed is going to be forced to do some sort of stimulus on the monetary front as it will signal a deflationary mindset has now gained the ascendancy. Based on my reading of Bernanke's comments yesterday, I think he left the door open for such action if they believe the need should arise.
I might add here that the oil release from the US of $30 million barrels of crude is equivalent to less than TWO DAYS TOTAL USAGE here in the US. Call me cynical but while the release was much heralded as a response to the loss of Libyan crude oil in the marketplace thanks to Mr. Obama's "kinetic military action" or non-hostile hostilities over there, I believe it is totally related to the same's poll numbers which are going down the toilet faster than an unwanted baby alligator which has gotten too big for its 55 gallon aquarium. High gasoline prices are threatening to make him a one termer (I can only hope) and what best to do but to dump some oil on the market to try to knock a dime or so off the price at the pump. Here's a new flash to the clueless one - instead of these cheap political gimmicks, stop spending money that we do not have and open the country up to domestic drilling. That would actually be a much better long term fix instead of playing political games with what is supposed to be for emergency purposes. The only emergency that I can see is his sinking poll numbers and that is no emergency as far as I am concerned but rather cause for rejoicing.
Back to gold however - the failure to extend past $1550 has sent the market back down into the former range with $1550 on top and $1520 on the bottom. Buying associated with sovereign debt fears is keeping it from sinking much below that $1520 level for the time being. ECB President Trichet today said that the risk signals from the situation in Greece are "flashing red" as far as stability in the Euro zone are concerned. That is why gold is so firm on the Continent. Earlier in the session gold had just posted another all time high when priced in British Pounds and still is very close to its all time high price in terms of the Euro. Fears of some sort of contagion spreading to the big European banks are running very high over there. As long as these fears remain downside in gold will be limited, even with the hedgies throwing everything out the window.
The HUI and XAU are both moving lower in conjunction with the weakness in the broader equity markets but thus far remain above the recent lows. The XAU currently looks to be the stronger of the two indices as the large caps are holding better than the juniors generally speaking.
The Dollar is on a tear higher but has yet to take out the 76.50 level on its chart. Until it can do that convincingly, it remains rangebound also.
I will try to get a later update on gold this afternoon after we get a chance to see how things are when the dust from all this commotion settles a bit. Heck, they knocked the old crop corn market down the limit yesterday and ran it to extended limits today but it has since rebounded well off its lows. Certain markets will respond to their fundamentals once the technical fund selling has exceeded value levels. The algorithms ALWAYS overdo it - either to the upside or to the downside.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“Dear Extended Family,
Today’s markets are exactly what you would expect as we enter illustration number three of the Skier.
Economic statistics are taking a hard fall.
Without QE who will buy US treasury issues?
Without QE where is the basis of world equity markets?
Without QE what do you think the chart of unemployment will look like?
Without QE how do you think the camouflage of the insolvent balance sheets of the financial industry will fare?
Without QE where is mortgage money coming from?
Without QE what do you think home prices will do?
Without QE how will the present Administration and the legislative be re-elected?
Without QE how will the States of the United States of America finance themselves?
Be prepared for a reversal of the decision to curtail QE at the end of June.
Be prepared for a snap back at a greater percentage of QE with a different name.
Be prepared for covert QE between July 1st and late August when stimulation goes wild.
Be prepared for gold to take out $1650 on the upside as magnets at $12,544 come into play.
Be prepared for the Inflationary Depression of all time.
Stand firm on your gold positions.
Stand firm on your discipline of NO margin.
Stand strong in your Swiss Franc and Canadian dollar positions.
Survive the MOPE and market manipulation that is so obvious today.
“Without its financial heroin, the stock market can’t handle the truth of America’s economic, political and social crises. While Allen Greenspan was able to mask much of his con job, Ben Bernanke looks like a man way over his head and owner of a helicopter with only one flight plan.
The “Don’t Worry, Be Happy” crowd have two last lines of defense. The first is the uptrend from the March lows which sits around 11,900 and the 200-Day M.A. around 11,775.
U.S. Dollar – You will hear a lot about a flight to safety into the U.S. Dollar. When you do, take out this chart and remind yourself where the world has really fled to and know history does indeed tend to repeat itself.
Gold – If I told you once I told you a thousand times, gold is in the “mother” of all bull runs. The very few true believers of this must also realize it’s a war and the financial world (and most of the media that follows it) hates gold and those who advocate it.
Today’s action IMHO is the last buying opportunity we shall see before the summer doldrums dissipate and gold moves towards and beyond $1,600 as the leaves turn color.
U.S. Bonds – The thought of shorting remains but the guts to do so still lacks. I do feel if the 10-year gets near its low yield around 2.66%, I will need to do it and let the chips end up where they may.
Oil – Another $5 lower and I think I’m likely to move back into the bullish camp
Natural Gas – The gas stocks are finally coming down to a point where they can at least be monitor for possible attractive entry points.”- Peter Grandich,Grandich Letter
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
1209.142
38,875,115
US$59,189m
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra)
Gold Bullion Securities
115.35
3,708,632
US$5,641m
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam
ETFS Physical Gold
126.23
4,058,350
US$6,179m
Australian Stock Exchange (ASX)
Gold Bullion Securities
14.21
474,061
US$696m
Johannesburg Securities Exchange (JSE)
New Gold Debentures
48.11
1,546,676
US$2,388m
NASDAQ Dubai
Dubai Gold Securities
0.154
4,954
US$8m
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 142.49: +0.43 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,559.38: +24.26 change from yesterday’s data.
Northgate’s (NXG) drill program, NovaGold’s (NG) prefeasibility study progress, Brigus Gold’s (BRD) mill expansion, and Great Panther’s (GPL) membership in the Russell Global Index were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1.Entree
EGI +1.49% $2.05
2.Buenaventura
BVN+1.42% $37.79
3.Hecla
HL +1.35% $7.49
LOSERS
1.DRDGOLD
DROOY-5.84% $4.35
2.Aurizon
AZK -5.38% $5.45
3.Almaden
AAU -5.23% $3.26
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:
Dynacor Gold Mines Announces Best Month of Production in the Company's History - More - June 23, 2011 | Item | ShareThis
Breakwater Announces Commencement of Nyrstar Offer and Declares Special Dividend in Connection With Nyrstar Offer - More - June 23, 2011 | Item | ShareThis
Rencore Resources Announces Appointment of Vice President-Aboriginal Affairs, Grant of Stock Options and First Quarter Filings under IFRS - More - June 23, 2011 | Item | ShareThis
Update: Aurora Gold Corp Sells Its Interest in AGC Resources LLC to Devtec Management Limited - More - June 23, 2011 | Item | ShareThis
Archean Star Resources Increases Size of Gnaweeda Claims - More - June 23, 2011 | Item | ShareThis
SIRIOS Resources Inc.: Private Placement Totals $1,833,600 - More - June 23, 2011 | Item | ShareThis
Strateco Closes a CA$3.5 Million Financing - More - June 23, 2011 | Item | ShareThis
Lincoln Mining-Corporate Update Conference Call June 28th - More - June 23, 2011 | Item | ShareThis
Augen Hires Pinnacle Capital Markets - More - June 23, 2011 | Item | ShareThis
Laurion Increases Size of Private Placement to a Maximum of $1,250,000 - More - June 23, 2011 | Item | ShareThis
CORONADO RESOURCES LTD. - Progress update at the Madison Mine in Montana, USA - More - June 23, 2011 | Item | ShareThis
RX Exploration Announces Glass Lewis Recommendation That Shareholders Vote for the RXE Nominees on the BLUE Proxy - More - June 23, 2011 | Item | ShareThis
Lago Dourado Engages Dr. David Groves as a Technical Advisor to the Company - More - June 23, 2011 | Item | ShareThis
Dia Bras Announces Appointment of Guillermo Kaelin to the Board of Directors - More - June 23, 2011 | Item | ShareThis
Castle Resources Appoints Mike Sylvestre as Chief Executive Officer - More - June 23, 2011 | Item | ShareThis
Romios Gold Announces Completion of Airborne Geophysical Survey Over the Dirk and Andrei Properties and Provides an Update on Drilling on Its Trek Property - More - June 23, 2011 | Item | ShareThis
Malaga Appoints Three New Board Members - More - June 23, 2011 | Item | ShareThis
TNR Gold Notes Minera Andes Inc.-US Gold Corp. Merger Litigation Update - More - June 23, 2011 | Item | ShareThis
Large Multi-Element Geochemical Anomaly Encourages Nitinat to Advance Work Program at Jasper - More - June 23, 2011 | Item | ShareThis
Constantine-Carlin JV Commences Work Program on Sixteen Yukon Gold Properties - More - June 23, 2011 | Item | ShareThis
Explor Intersects 4.07 g/tonne Au Over 20.0 Meters on Timmins Porcupine West - More - June 23, 2011 | Item | ShareThis
Uranium North Reports Drill Mobilization Underway on the Mallery Gold-Silver Project - More - June 23, 2011 | Item | ShareThis
Western Troy Drills 3.3 Metres of 2.4% Copper at Lake Chibougamau - More - June 23, 2011 | Item | ShareThis
Glass Lewis Recommends Klondex Shareholders Vote for Klondex Director Slate - More - June 23, 2011 | Item | ShareThis
Goldex Resources Appoints New Director - More - June 23, 2011 | Item | ShareThis
SearchGold Provides Update on Swala and Burkina Faso - More - June 23, 2011 | Item | ShareThis
Cadillac Obtains 0.611% Cu and 0.373% Ni Over 52 Feet at K1-1 - More - June 23, 2011 | Item | ShareThis
Two Additional Hanging Wall Intercepts at Nivloc Project - More - June 23, 2011 | Item | ShareThis
Edgewater Recieves Additional $2,200,000 From Warrant Exercise Kinross Gold Exercises All Warrants - More - June 23, 2011 | Item | ShareThis
Gabriel Resources Ltd.: Annual & Special Meeting Voting Results and Update on Cash Resources - More - June 23, 2011 | Item | ShareThis
Viking Minerals Cancels 240 Million Common Shares and Significantly Enhances Shareholder Value - More - June 23, 2011 | Item | ShareThis
West Kirkland Drilling Update: Continued Gold Intercepts in Kirkland Lake - More - June 23, 2011 | Item | ShareThis
THEMAC Resources Group Limited Begins Follow Up Drilling at Copper Flat - More - June 23, 2011 | Item | ShareThis
Argentex Continues To Expand Tranquilo Zone at Pinguino Project - More - June 23, 2011 | Item | ShareThis
Silver Spruce Reports Discovery of New Mineralized Alteration Zone 3.5 km to South of Big Easy Gold/Silver Zone, Eastern Newfoundland - More - June 23, 2011 | Item | ShareThis
Netco Announces Acquisition of Option to Acquire Toruel Property, Closing of Private Placement and Name Change - More - June 23, 2011 | Item | ShareThis
Sanatana Announces Passing of Director Harley Hotchkiss - More - June 23, 2011 | Item | ShareThis
New Discovery Returns 1.8 Metres Averaging 1400g/t Ag, 19.7% Pb and 14.5% Zn at Southern Silver's Cerro Las Minitas Project - More - June 23, 2011 | Item | ShareThis
Marifil Partner Receives Approval to Move Forward at Toruel - More - June 23, 2011 | Item | ShareThis
Midlands Alerts Shareholders to Dissidents' Circular: Zero-Premium Take Over is Opportunistic, Self-Serving and Not in Shareholders Best Interest - More - June 23, 2011 | Item | ShareThis
BCGold Corp. Commences Work Program at Engineer Gold Mine - More - June 23, 2011 | Item | ShareThis
Northgate Minerals Initiates Drill Program at Nevada Exploration Inc.'s Awakening Gold Project - More - June 23, 2011 | Item | ShareThis
Mazorro Announces Option Agreement With Adventure Gold for a 100% Interest in the Dalquier Property, Abitibi, Qc - More - June 23, 2011 | Item | ShareThis
Adventure Gold Announces Option Agreement With Mazorro Resources for its Dalquier Property in Abitibi, Qc - More - June 23, 2011 | Item | ShareThis
Angus Announces Non-Brokered Private Placement of Up to $2 Million - More - June 23, 2011 | Item | ShareThis
Pan American Lithium Corp. Appoints New York IR Firm - More - June 23, 2011 | Item | ShareThis
Winter 2011 Uracan Drilling Outlines Significant Uranium Mineralization on Costebelle Claims - More - June 23, 2011 | Item | ShareThis
Sunridge Gold Starts Drilling at the Besakoa Copper-Zinc-Gold Project, Madagascar - More - June 23, 2011 | Item | ShareThis
Thundermin Obtains the Right to Earn a 100% Interest in a Large Portion of the Stirling Zinc-Lead-Copper-Silver-Gold Massive Sulphide Belt, Cape Breton Island - More - June 23, 2011 | Item | ShareThis
Matamec to Present New Kipawa Mineral Resource Estimate at its AGM on June 30th - More - June 23, 2011 | Item | ShareThis
Drilling Underway on Stroud's Hislop Gold Project - More - June 23, 2011 | Item | ShareThis
Northern Gold Increases Garrcon Deposit Indicated Resource Five-Fold to 720,000 ozs and Releases Preliminary Economic Assessment - More - June 23, 2011 | Item | ShareThis
Reservoir Reports Exploration Progress with Freeport-McMoRan Exploration Corporation on the Timok Project in Serbia - More - June 23, 2011 | Item | ShareThis
KGHM Ajax Participates in Open House for Ajax Project Community Relations Office Opening in Kamloops, B.C. - More - June 23, 2011 | Item | ShareThis
Alto Ventures Ltd.: Summer Program Started at Miner Lake, Beardmore-Geraldton Gold Belt, Ontario - More - June 23, 2011 | Item | ShareThis
Forum to Explore Nutaaq Rare Earth Property in Nunavut - More - June 23, 2011 | Item | ShareThis
Canalaska Uranium Completes First Phase Fond Du Lac Drill Program - More - June 23, 2011 | Item | ShareThis
Geophysical Survey on Focus Claims in Mexico Further Highlights Possible Copper Gold Porphyry System - More - June 23, 2011 | Item | ShareThis
Highpointe To Drill Tasco Property - More - June 23, 2011 | Item | ShareThis
Kalimantan Gold Extends Jelai Gold Mining Exploration Licence - More - June 23, 2011 | Item | ShareThis
Great Panther Silver Set to Join the Russell Global Index - "Membership in the Russell Global Index, which remains in place for one year, means automatic inclusion in the appropriate large-cap, small-cap, all-cap indexes as well as the applicable style, sector and country indexes. Russell determines membership for its equity indexes primarily by objective, market-capitalization rankings and style attributes." More - June 23, 2011 | Item | ShareThis
Northgate Minerals Initiates Drill Program at the Awakening Gold Project, Nevada - "The Awakening Gold Project consists of 432 claims (approximately 35.9 square kilometres ("km2") or 13.9 square miles) and is located 50 km northwest of Winnemucca, Nevada, on the northwest flank of the Slumbering Hills. The property covers the northwest portion of the historic Awakening mining district and adjoins the north end of the former producing Sleeper Gold Mine, which has produced 1.7 million ounces of gold and 2.3 million ounces of silver." More - June 23, 2011 | Item | ShareThis
NovaGold Reports Progress on Galore Creek Prefeasibility Study - "NovaGold Resources Inc. (TSX:NG - News)(AMEX:NG - News) announces significant advancement towards completion of the prefeasibility study on its Galore Creek copper-gold-silver project ("Project") located in northwestern British Columbia. The study is being prepared by Galore Creek Mining Corporation ("GCMC"), owned equally by subsidiaries of NovaGold Resources Inc. ("NovaGold") and Teck Resources Limited ("Teck")." More - June 23, 2011 | Item | ShareThis
Brigus Gold Initiates Black Fox Mill Expansion - "Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE Amex: BRD) (TSX:BRD.to - News) announces that it will proceed with an initial expansion of the Black Fox Mill, which is expected to be completed, and in service, during the first quarter of 2012. This initial expansion will increase processing capacity at the Mill to 2,200 tonnes per day (tpd) through optimization of existing mill equipment and elimination of production losses. The Company has commissioned a Phase 2 mill expansion plan, that if implemented in the future, would increase processing capacity to 3,500 tonnes per day and would include replacement of the existing crushing plant with a semi-autogenous grinding (SAG) mill." More - June 23, 2011 | Item | ShareThis
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Gold Seeker Closing Report: Gold and Silver Fall Over 2% and 4%
“Dear Extended Family,
“Without its financial heroin, the stock market 
