-- Posted Wednesday, 30 May 2012 | | Disqus
| Close | Gain/Loss |
Gold | $1564.80 | +$6.00 |
Silver | $27.94 | +$0.05 |
XAU | 155.36 | -0.19% |
HUI | 420.47 | +0.32% |
GDM | 1222.26 | +0.21% |
JSE Gold | 2475.91 | -42.86 |
USD | 83.06 | +0.64 |
Euro | 123.67 | -1.32 |
Yen | 126.46 | +0.67 |
Oil | $87.82 | -$2.94 |
10-Year | 1.625% | -0.106 |
T-Bond | 149.65625 | +1.84375 |
Dow | 12419.86 | -1.28% |
Nasdaq | 2837.36 | -1.17% |
S&P | 1313.32 | -1.43% |
The Metals:
Gold dropped almost 1% in Asia before it climbed back to nearly unchanged at $1556.38 by a little before 8AM EST and end then fell all of the way back to $1531.92 at about 9:45 AM EST, but it then climbed to a new session high of $1569.42 in early afternoon trade and ended with a gain of 0.38%. Silver slipped to as low as $27.392 before it climbed back to as high as $28.17 and ended with a gain of 0.18%.
Euro gold rose to about €1265, platinum lost $28.50 to $1396.50, and copper dropped 9 cents to about $3.37.
Gold and silver equities fell about 3% at the open, but they then rose to find slight gains by late morning and ended mixed.
The Economy:
Report | For | Reading | Expected | Previous |
Pending Home Sales | Apr | -5.5% | 0.6% | 3.8% |
Mortgage-application volume down 1.3%: MBA MarketWatch
Tomorrow at 8:15AM EST brings ADP Employment for May expected at 157,000. At 8:30 are Initial Jobless Claims for 5/26 expected at 368,000 and first quarter GDP expected at 2.0%. The GDP Deflator is expected at 1.5%. Finally at 9:45 is Chicago PMI for May expected at 57.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell as the U.S. dollar index and treasuries rose again on reinforced worries about Europe that sent the Dow, Nasdaq, and S&P lower.
Spain rattles markets, Greeks warned of catastrophe Reuters
Treasury 10-Year Yield Reaches Record Low as Stocks Slump Bloomberg
Among the big names making news in the market today were Allstate and Apple.
The Commentary:
“There is what feels like near-panic buying of US Treasuries at the moment, due to the implosion that we are witnessing in much of the European Sovereign Debt markets. Investors/traders are scared to death to own bonds from these problem nations and are rushing into both US Treasuries and German Bunds as safe havens.
The result has been to collapse US interest rates on the Ten Year firmly below not only the 1.8% level, but also below the intra-month spike lows near the 1.7% level. We have one more day left in the month of May but it certainly appears we are on track to set a new monthly closing low.
The flip side to this rush to Treasuries is that commodities are being thrown overboard, irrespective of any particular set of fundamentals, as hedge fund algorithms are whacking that sector, both liquidating long positions as well as instituting new bearish bets.
The question on the minds of many is when will the Fed step in to attempt to halt what looks like a growing tidal wave of deflationary pressures? My thinking is that they will not until they get the commodity sector, particularly the energy markets, more specifically the gasoline market, down to lower levels.
We are already at the 50% Fibonacci Retracement Level off the entire 2008 - 2011 rally. If the index cannot hold at this critical juncture, it will drop towards 465, which is the intersection of the bottom tine of the pitchfork and the 61.8% Retracement level. My view is that the Fed will act should commodity prices get to that level.
Keep in mind that while the Fed and the US monetary officials like these abnormally low interest rates (it keeps loan rates cheaper and allows the US to continue borrowing and spending money at its drunken sailor pace), and while they are near gleeful at the prospect of falling food and energy prices, they do not want a deflationary mindset to take hold in the minds of investors or the public for that matter.
For investors, that will mean the equity markets will collapse as they will dump stock holdings and for the public that means they will forego spending now on the notion that they can wait for prices to fall further. The last thing that the Fed wants is for consumers to rein in spending.
So, the question is, can the Fed get these stubbornly high gasoline prices to fall another 30 - 35 cents while holding off on any further stimulus or will the US equity market bears, force their hands?”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Vancouver conference offers spectacular cruise next Sunday evening
The Statistics:
As of close of business: 5/29/2012
Gold Warehouse Stocks: | 11,002,032.925 | - |
Silver Warehouse Stocks: | 141,919,927.004 | +4,618.304 |
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: 176.80: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,619.03: -45.27 change from yesterday’s data.
The Miners:
Royal Gold’s (RGLD) credit facility, Gold Reserve’s (GRZ) restructuring agreement, SEMAFO’s (SMF.TO) drill results, Brigus Gold’s (BRD) drill results, Extorre’s (XG) preliminary internal study, Kirkland’s (KGI.TO) annual gold reserve and resource estimates, Excellon’s (EXN.TO) drill results, and Silvermex’s (SLX.TO) interim order were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU+7.14%$3.60 |
2. NovaGold | NG +2.78% $5.92 |
3. Fortuna | FSM+2.56%$4.01 |
LOSERS
1. Loncor | LON-8.58% $1.06 |
2. Banro | BAA-6.97% $4.14 |
3. Timmins | TGD-4.32% $1.55 |
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
- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here
Additional Resources for today’s Gold Seeker Report can be found:
© Gold Seeker 2012
Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.
Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.
-- Posted Wednesday, 30 May 2012 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver End Slightly Higher
