-- Posted Thursday, 23 February 2012 | | Disqus
| Close | Gain/Loss |
Gold | $1779.50 | +$0.80 |
Silver | $35.36 | +$0.97 |
XAU | 202.36 | +0.54% |
HUI | 549.26 | +0.64% |
GDM | 1589.16 | +0.84% |
JSE Gold | 2822.24 | +9.31 |
USD | 78.65 | -0.59 |
Euro | 133.69 | +1.21 |
Yen | 125.04 | +0.42 |
Oil | $107.83 | +$1.55 |
10-Year | 1.984% | -0.021 |
T-Bond | 142.6875 | +0.4375 |
Dow | 12984.69 | +0.36% |
Nasdaq | 2956.98 | +0.81% |
S&P | 1363.46 | +0.43% |
The Metals:
Gold traded mostly slightly lower in Asia and London, but it then rose to as high as $1787.15 in New York and ended with a gain of 0.05%. Silver surged to as high as $35.592 and ended with a gain of 2.82%.
Euro gold fell to about €1331, platinum lost $2.70 to $1722.50, and copper fell a few cents to about $3.80.
Gold and silver equities rose about 1% by late morning and remained near that level for the rest of the day.
Indian gold imports in 2012 seen down 20 pct Reuters
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 2/18 | 351K | 355K | 351K |
FHFA Housing Price Index | Dec | 0.7% | - | 0.7% |
Rate on 30-year mortgage rises to 3.95 percent Yahoo
Tomorrow at 9:55 brings Michigan Sentiment for February expected at 73.0 and New Home Sales for January expected at 315,000.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil turned higher after the Energy Information Administration reported that crude inventories rose 1.6 million barrels, gasoline inventories fell 600,000 barrels, and distillates fell 200,000 barrels.
The U.S. dollar index fell as the Dow, Nasdaq, and S&P rose on decent economic data. Treasuries turned higher after today’s $29 billion 7-year note auction sold at a high yield of 1.418% with a bid to cover of 3.11.
Among the big names making news in the market today were HP, Sears, Target, JPMorgan, and Vivus.
The Commentary:
“I am posting a pair of gold charts today to note the clear resistance levels on the chart and to comment accordingly.
The first is the daily chart showing the resistance zone that was broken this morning after being tested in yesterday's session. The key to that test was the ability of the gold market to SUSTAIN GAINS ABOVE the $1750 level. That was the level all momentum traders were watching to determine whether or not they were going to move in. When it appeared likely that gold was going to hold above that level yesterday, in came the hedge fund algorithms and up went the metal before it encountered a bout of bullion bank selling right at the key $1780 level.
The ability of the bulls to absorb those bids and push past that defensive barrier has set the weaker-handed shorts on their heels and is bringing in additional momentum based buying in today's session.
The result is that the market is poised for a test of a big block of resistance centering on the round number of 1800. Gold ALWAYS keys on these round numbers and has done so since it began its ascent to $300 a decade plus ago.
If $1800 gives way, then the next target is the zone near $1850.
Initial downside support comes in back near the $1750 level.
Now let's shift gears to the weekly chart where you will see two horizontal blue lines. The lower of the two comes in near $1740. This is the reason that the battle centered on that number last week and why gold bulls were stymied in their efforts to launch the metal higher. Chart focused bullion banks were aware of the significance of that level and were making every effort to hold the price from closing through that level. Once they were repulsed, they then attempted to hold the price from popping back through $1750 as the algorithms would signal their buys once price moved through that level and held.
You can see from this longer term oriented chart, the significance of the round number of $1800. That is where the next focus is shifting and it will hold as much significance as $1750 did on the way up. Gold bulls have the wind at their back right now; the big question is how much money do they want to commit to the metal in terms of position size. Certainly they are making a strong play in silver right now which will tend to benefit the gold market as well.
Silver is sitting right on MAJOR Chart resistance at $35.35 - $35.50. There is not much in the way of significant overhead chart resistance above this level until you get to $40. I might add that a bit of minor resistance appears near $39. I should also note that silver is making this move independent of the copper market which is reacting to fears of slowing demand for the red metal especially after the disappointing numbers coming out of Europe this morning. Copper stocks are building in Shanghai so some traders are reading that as a slowing of growth prospects in China, which is responsible for approximately 40% of global demand for the metal. We'll have to keep an eye on that since Silver has been more sensitive to overall global growth prospects than gold in general.
Strength in the mining shares is further aiding the move higher in both gold and silver with the HUI closing in on a key technical level on the price charts as well. Bulls have done a consistently good job in supporting these things on any dips to the bottom of the 1 1/2 year long trading range which comes in near the 500-490 level. One thing they have not been able to do is to generate enough upside price action to bring in momentum based buying which will also begin squeezing some of the shorts out, or at the very least make them rethink their continuing in that infernal ratio spread trade that has plagued this sector for nearly two years now.
If this index pushes past the line noted on this chart, there is a very good chance that the shares will begin catching a very strong bid with the potential of moving the index back to the top of that trading range closer to 590-600.
One last thing - yesterday I showed you a chart of gold priced in terms of the British Pound and how close it was to reaching its former all-time high.
Today here are two more - the first is Euro gold and the second is Yen Gold. Note the strength in the charts.
Gold bears have their work cut out for them.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
India silver imports may top 5,000 tons in 2012
Jim Sinclair: Big events and volatility in gold are imminent
John Embry: Central banks' gold suppression will fail this year
Commodity pool operator should have stuck to gold or silver
Japan uses commercial banks to disguise currency market rigging
The Statistics:
Activity from: 2/22/2012
Gold Warehouse Stocks: | 11,424,986 | -128 |
Silver Warehouse Stocks: | 129,019,699 | -212,659 |
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 | 1281.587 | 41,204,299 | US$73,198m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 118.63 | 3,813,918 | US$6,801m |
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$6,985m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 472,751 | US$815m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 39.76 | 1,278,343 | US$2,240m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 180.12: +0.85 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,570.57: No change from yesterday’s data.
The Miners:
Richmont’s (RIC) fourth quarter results, Pretivm’s (PVG) project update, Coeur’s (CDE) 2011 results, Silver Bull’s (SVBL) new board members, and Paramount’s (PZG) drill results were among big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Loncor | LON +8.33% $1.625 |
2. Tanzanian Royalty | TRX +6.96% $4.15 |
3. Paramount | PZG +6.27% $2.71 |
LOSERS
1. Extorre | XG -2.91% $8.02 |
2. Avino | ASM-2.83% $1.788 |
3. Solitario | XPL -2.42% $1.61 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
Please see Yahoo’s Mining/Metals News Wire for all of today’s mining news.
- Chris Mullen, Gold Seeker Report
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© Gold Seeker 2012
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-- Posted Thursday, 23 February 2012 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold Gains While Silver Soars Almost 3%
