-- Posted Tuesday, 13 March 2012 | | Disqus
| Close | Gain/Loss |
Gold | $1670.50 | -$28.90 |
Silver | $33.19 | -$0.38 |
XAU | 183.53 | -0.37% |
HUI | 498.47 | -0.52% |
GDM | 1442.66 | -0.67% |
JSE Gold | 2536.86 | -7.53 |
USD | 80.22 | +0.37 |
Euro | 130.65 | -0.89 |
Yen | 120.46 | -1.08 |
Oil | $106.71 | +$0.37 |
10-Year | 2.107% | +0.076 |
T-Bond | 140.6875 | -1.28125 |
Dow | 13177.68 | +1.68% |
Nasdaq | 3039.88 | +1.88% |
S&P | 1395.96 | +1.81% |
The Metals:
Gold fell $15.88 to $1683.52 by a little after 9AM EST before it rebounded to $1701.28 by midday, but it then fell to a new session low of $1662.70 after the fed’s statement and ended with a loss of 1.7%. Silver slipped to as low as $33.011 and ended with a loss of 1.13%.
Euro gold fell to about €1278, platinum lost $6 to $1684.50, and copper gained 7 cents to about $3.90.
Gold and silver equities saw slight gains for most of the morning, but they then fell back off in afternoon trade and ended with modest losses.
The Economy:
Report | For | Reading | Expected | Previous |
Retail Sales | Feb | 1.1% | 1.0% | 0.6% |
Retail Sales ex-auto | Feb | 0.9% | 0.6% | 1.1% |
Business Inventories | Feb | 0.7% | 0.6% | 0.6% |
The fed kept rates unchanged as expected.
“The central bank described the economy as "expanding moderately," unchanged from its January statement, and said growth still faced significant downside risks.
Policymakers said the job market had improved but unemployment remains high, reiterating its expectation that rates would remain near zero until at least late 2014.
A quickening in the pace of jobs growth and a sharp drop in the unemployment rate to 8.3 percent from 9.1 percent in August has led some economists to rein in their expectations for a further easing of monetary policy.
The Fed said a recent spike in energy costs would likely push up inflation but only in the short run. Richmond Fed President Jeffrey Lacker again dissented against the decision, since he did not expect economic conditions to warrant ultra-low rates until late 2014.”
Federal Open Market Committee March 13 Statement: Full Text Bloomberg
U.S. Job Openings Were Little Changed From Highest Since 2008 Bloomberg
Tomorrow at 8:30AM EST brings Export and Import Prices for February and the fourth quarter Current Account Balance expected at -$113.8 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil remained modestly higher after the fed’s statement sent the U.S. dollar index back near its earlier session highs.
Treasuries remained lower after today’s $21 billion 10-year note auction sold at a high yield of 2.076% with a bid to cover of 3.24.
The Dow, Nasdaq, and S&P rose on better than expected economic data and late session reports that major financial companies are passing the fed’s stress tests.
Among the big names making news in the market today were Dell, Merrill Lynch, Yahoo and Facebook, and JPMorgan.
The Commentary:
“Last week I posted a chart of the S&P 500 wondering if a top was in this market. Apparently not, said the bulls, who have proceeded to take this market higher for the last 5 days in a row. Today they took the price to a new 52 week high. Isn't it amazing what a "bit" of Central Bank supplied liquidity can get ya?
Unfortunately for the Fed, bond traders are not being particularly cooperative today as they are slamming the long bond lower, particularly as they digest the day's FOMC statement which repeated, once again, the committee's intent on keeping short term rates extremely low until late in 2014!
Money is thus fleeing out of the longer term Treasury market and plowing into stocks as investors are all gleefully leaping onto the equity bull train before it leaves the station without them. With extremely low yields as far as the eye can see and the Central Banks papering over all that ails the global economy, traders are being herded into stocks, which is exactly where the monetary authorities want them to be!
Money has also been flowing out of the gold market today as safe haven trades involving gold are being taken off as well. Apparently the theme today is "GO FOR THE GROWTH". Copper is certainly acting as if traders are convinced the global economy is back on its feet and blue skies lie ahead.
I should note that the Dollar is moving higher today not based on the risk aversion trades (the Japanese Yen is getting blasted lower which would not be the case if the risk aversion trades were back on) but rather on the idea that the US economy is going to be stronger than Euroland or Japan.
The bond breakdown is extremely significant in my opinion. A while ago I posted a MONTHLY CHART of the LONG BOND detailing some technical action. I am reposting that same chart with the current action now charted. Whether the monetary authorities like it or not, long term interest rates have begun rising. If they close the week out below the technical support levels noted, momentum players will begin taking on short positions in an attempt to drive the bonds even lower. There are an awful lot of players on the LONG SIDE of the bond market who have been counting on the Fed to put a floor in this market. It is going to be one nifty trick for the monetary masters to keep the equities soaring higher and preventing the bonds from falling apart.
One last chart - yes, you did just dream that the US underwent a credit crisis - relax - everything that led to that has been fixed!” - Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Carmen Reinhart: Financial repression has come back to stay
More praise for Rickards book; and Calandra appeals for Cambodia
Hathaway lists 9 key points for gold and silver markets
Japan starts buying Chinese debt to diversify away from dollar
Is the Banque de France eager to show it still has its gold?
New York Sun: Obama in your tank
Ira Stoll: Bernanke's big hidden tax on savers
13 years after leaving Treasury, Rubin says he has too many dollars
Gold Resource Corp. to offer dividends in gold and silver coins
The Statistics:
Activity from: 3/12/2012
Gold Warehouse Stocks: | 11,398,244 | -6,921 |
Silver Warehouse Stocks: | 130,912,550 | +594,086 |
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 | 1293.676 | 41,592,971 | US$70,255m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 119.15 | 3,830,754 | US$6,498m |
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 | 472,650 | US$774m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 39.75 | 1,278,132 | US$2,160m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 182.36: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,752.67: -10.58 change from yesterday’s data.
The Miners:
Comstock’s (LODE) hires, Paramount’s (PZG) assay results, Kirkland’s (KGI.TO) third quarter results, and McEwen’s (MUX) new silver discovery were among big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Avino | ASM +4.13% $2.26 |
2. Coeur | CDE +3.22% $26.31 |
3. Comstock | LODE+3.09% $2.00 |
LOSERS
1. Almaden | AAU -4.12% $2.79 |
2. Lake Shore | LSG -3.62% $1.33 |
3. Kinross | KGC-3.39% $10.54 |
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 Tuesday, 13 March 2012 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Over 1%
