-- Posted Wednesday, 22 August 2012 | | Disqus
| Close | Gain/Loss |
Gold | $1654.40 | +$17.10 |
Silver | $29.83 | +$0.56 |
XAU | 168.05 | +2.25% |
HUI | 454.44 | +2.21% |
GDM | 1311.27 | +2.25% |
JSE Gold | 2430.43 | -20.09 |
USD | 81.55 | -0.37 |
Euro | 125.18 | +0.45 |
Yen | 127.32 | +1.16 |
Oil | $97.26 | +$0.42 |
10-Year | 1.719% | -0.086 |
T-Bond | 147.59375 | +1.3125 |
Dow | 13172.76 | -0.23% |
Nasdaq | 3073.67 | +0.21% |
S&P | 1413.49 | +0.02% |
The Metals:
Gold climbed to $1645.01 in Asia before it fell to see a slight loss at $1634.62 just before FOMC Minutes were released, but it then jumped to as high as $1655.70 in the last couple of hours of trade and ended with a gain of 1.04%. Silver rose to $29.638 in Asia before it fell back to about unchanged in London, but it then surged to as high as $29.91 in afternoon New York trade and ended with a gain of 1.91%.
Euro gold rose to almost €1322, platinum gained $31 to $1531, and copper rose a few cents to about $3.47.
Gold and silver equities fell almost 1% by early afternoon, but they then rallied back higher in late trade and ended with over 2% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | July | 4.47M | 4.55M | 4.37M |
CBO sees deeper "fiscal cliff" recession next year Reuters
U.S. Budget Deficit to Reach $1.1 Trillion in 2012, CBO Says Bloomberg
U.S. Mortgage Application Volume Down 7.4% Last Week -MBA Fox Business
FOMC minutes from the fed’s July 31st meeting showed that:
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.”
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 8/18 expected at 365,000 and at 10AM are New Home Sales for July expected at 368,000 and the FHFA Housing Price Index for June.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil turned higher after the Energy Information Administration reported that crude inventories fell 5.4 million barrels, gasoline inventories fell 1.0 million barrels, and distillates rose 1.0 million barrels.
The U.S. dollar index fell after FOMC minutes revealed active discussion for additional monetary accommodation.
Treasuries rose on worries about Greece and Japan that sent the Dow, Nasdaq, and S&P lower in early trade, but talk of more monetary easing gave some strength to the major indices in late trade.
Among the big names making news in the market today were Dell, Toll, Verizon, American Eagle, and Zynga.
The Commentary:
“Dow Jones is reporting this morning that PIMCO's Commodity Real Return Strategy Fund, with about $20 billion in assets, has raised its gold holdings to 11.5% of it total assets from 10.5% two months ago. The position was apparently taken when gold dipped towards $1500 according to comments from Nic Johnson, its co-portfolio manager.
Their concern is a triple one - loose monetary policy, high levels of sovereign debt and rising commodity prices are going to fuel an inflation outbreak as we move ahead.
Sounds familiar doesn't it?
Here is the point - the chart in gold showed tremendously strong support in gold on any retreats in price down below the $1600 level a short while back. Gold would dip down into these levels but would immediately attract strong buying and would rebound back higher. WE remarked that this sort of chart action showed ACCUMULATION by deep-pocketed players, whether those were of Asian origin or large investment funds elsewhere. Regardless, these well capitalized players are positioning themselves for what they see coming down the road.
Note, that this is not MOMENTUM BASED buying. That crowd only enters the markets AFTER it starts moving higher and takes out technical resistance levels. They are now coming into gold and into silver. ACCUMULATION puts a floor in a market; momentum based buying drives it higher into a trend.
We'll need to keep a close eye on the yield on the Ten Year Note to see how that acts as we move forward. If the inflation play is replacing the deflation play, we have seen the lows in interest rates for a very long time.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“Gold – Once again we’ve risen close to a key level for gold but I must remind some “yet again” we’re not in a new up-leg until if and when (more like when)we get two consecutive closes above $1,650. Gold’s technical picture is quite bullish but rest assured the “bums” shall attempt one of their raids as sure as Canuck fans are already getting their Stanley Cup -2013 hats ready.
U.S. Dollar - I said the bullish camp was overrun with almost 100% bulls and it was nothing more than a dead-cat bounce in a secular bear market for the terminally ill U.S. Dollar. Watch for a dramatic short covering rally if the Euro can close above $1.25 (I think its when).
U.S. Stock Market – The least resistance continues to be up but a pullback as it nears all-time highs is likely.
Bonds – The worse investment for the next decade remains just that and look for some more switching from bonds to stocks when 10-year goes above 2%.
Oil and Natural Gas - $100+ oil near and I’m near certain Israel is close to attacking Iran in next 60 days. Natural gas remains an avoid.
Junior Resource Market indeed saw an exhaustion of selling and is bouncing but any thought of one getting even this year is foolish (except if gold runs to new highs). But the bottom has been put in.”- Peter Grandich, Grandich Letter
GATA Posts:
LCH.Clearnet starts accepting gold as collateral
From free enterprise to Bailout Nation via bigger government and Robert Rubin
GATA secretary's interview with Jay Taylor posted at VoiceAmerica
The Statistics:
As of close of business: 8/21/2012
Gold Warehouse Stocks: | 10,844,137.795 | -64.3 |
Silver Warehouse Stocks: | 140,076,292.528 | +677,606.214 |
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 | 1278.962 | 41,119,897 | US$67,500m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 127.53 | 4,100,088 | US$6,727m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 148.88 | 4,786,630 | US$7,805m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.16 | 358,789 | US$588m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 41.26 | 1,326,494 | US$2,121m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 4.223 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 185.33: +1.73 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,733.39: No change from yesterday’s data.
The Miners:
Yamana’s (AUY) exploration update and completed acquisition of Extorre Gold, Impact Silver’s (IPT.V) second quarter results, and SilverCrest’s (SVL.V) listing on the NYSE MKT were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Avino | ASM+9.70%$1.47 |
2. Richmont | RIC +6.10% $4.35 |
3. Almaden | AAU+5.65% $2.43 |
LOSERS
1. Northern Dynasty | NAK -4.17% $2.30 |
2. Jaguar | JAG -3.72% $0.9724 |
3. Gold Reserve | GRZ -3.39% $3.71 |
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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-- Posted Wednesday, 22 August 2012 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain About 1% and 2%
