-- Posted Thursday, 17 May 2012 | | Disqus
| Close | Gain/Loss |
Gold | $1573.70 | +$34.30 |
Silver | $28.02 | +$0.87 |
XAU | 147.69 | +3.76% |
HUI | 393.25 | +4.44% |
GDM | 1144.28 | +4.58% |
JSE Gold | 2188.24 | -13.14 |
USD | 81.45 | +0.01 |
Euro | 127.01 | -0.14 |
Yen | 126.21 | +1.68 |
Oil | $92.56 | -$0.25 |
10-Year | 1.702% | -0.063 |
T-Bond | 148.375 | +1.5625 |
Dow | 12442.49 | -1.24% |
Nasdaq | 2813.69 | -2.10% |
S&P | 1304.86 | -1.51% |
The Metals:
Gold jumped to as high as $1579.80 by midday in New York before it drifted a bit in afternoon trade, but it still ended with a gain of 2.23%. Silver surged to as high as $28.33 and ended with a gain of 3.2%.
Euro gold rose to almost €1239, platinum gained $23 to $1449, and copper fell slightly to about $3.47.
Gold and silver equities rose about 4% by late morning and remained near the level for the rest of the day.
Latest Issue: Gold Demand Trends Q1 2012 - WGC
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 5/12 | 370K | 365K | 370K |
Philadelphia Fed | May | -5.8 | 8.8 | 8.5 |
Leading Indicators | Apr | -0.1% | 0.2% | 0.3% |
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 and treasuries rose on poor economic data and continued worries about Greece and Spain that sent the euro and the Dow, Nasdaq, and S&P lower.
Among the big names making news in the market today were JPMorgan, Tiffany, Pinterest, Sears, Goldman Sachs, Berkshire Hathaway, Wal-Mart, and Agilent.
The Commentary:
“While one day's worth of price action does not a trend make, it is interesting to me watching the combination of price action in both the gold market and in the Treasury market.
In the long bond, the market has broken into a new all-time high. That is significant as it shows that traders there are anticipating an upcoming round of bond purchases attached to a new Federal Reserve round of Quantitative Easing. It seems as if the catalyst for today's surge higher was the Philadelphia Fed business index drop to an unexpected -5.8. Business conditions in that corner of the realm are worsening rather quickly.
Note also that the yield on the Ten Year Note has now fallen solidly BELOW that critical 1.80% level. This is what has traders moving towards action by the Fed. That line is technically significant, as has been stated before, seeing that we have never had a WEEKLY CLOSE below this level and it is now Thursday! If this yield were to further break below that spike low at 1.696% and the Fed were to NOT ACT, Bernanke would get his place in history all right, but it would not be in the light that he no doubt is hoping for!
All of this appears to be the driver in the nice pop higher in the gold market this morning, continuing the rally that began in Asian trading last evening. A push past $1580 would certainly startle the bears and induce further short covering that has the potential to take the price back to the key $1600 level.
Let's see where the dust settles at the end of the trading session today. For now, it appears that traders are regarding any dose of rotten economic news as increasing the odds of QE sooner rather than later.
If, and this is the big question, IF gold becomes CONVINCED that the Fed is going to act, it will immediately bottom. That is all one needs to know about the gold market. Nothing else will matter at that point.
We are back to picking the petals from Daisy flowers - She loves me; she loves me not. The Fed loves me; the Fed loves me not. Will it do the QE or will it not???”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Grandich, Sinclair do hand-holding for monetary metals investors
Japanese pension fund buys gold -- but only the ETF kind
The Statistics:
As of close of business: 5/16/2012
Gold Warehouse Stocks: | 11,001,357.934 | +1,167.85 |
Silver Warehouse Stocks: | 142,314,990.830 | +317,442.40 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | awaited | awaited | US$awaited |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | awaited | awaited | US$awaited |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | awaited | awaited | US$awaited |
Australian Stock Exchange (ASX) | Gold Bullion Securities | awaited | awaited | US$awaited |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | awaited | awaited | US$awaited |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 176.58: -0.91 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,516.40: No change from yesterday’s data.
The Miners:
Gold Reserve’s (GRZ) notice on notes, Eurasian’s (EMXX) first quarter results, Gold Fields’ (GFI) quarterly results, and MAG Silver’s (MVG) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Mines MGMT | MGN+20.87% $1.39 |
2. Extorre | XG +15.18% $2.58 |
3. Great Panther | GPL +12.99% $1.74 |
LOSERS
1. Golden Minerals | AUMN -16.3% $3.39 |
2. Loncor | LON -5.88% $1.12 |
3. Ivanhoe | IVN -4.68% $8.56 |
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, 17 May 2012 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain Over 2% and 3%
