-- Posted Thursday, 13 September 2012 | | Disqus
| Close | Gain/Loss |
Gold | $1766.30 | +$34.30 |
Silver | $34.65 | +$1.44 |
XAU | 186.63 | +4.98% |
HUI | 503.18 | +4.88% |
GDM | 1446.15 | +4.88% |
JSE Gold | 2302.94 | -8.38 |
USD | 79.24 | -0.49 |
Euro | 129.83 | +0.83 |
Yen | 129.06 | +0.58 |
Oil | $98.31 | +$1.30 |
10-Year | 1.756% | -0.009 |
T-Bond | 146.65625 | -0.25 |
Dow | 13539.86 | +1.55% |
Nasdaq | 3155.83 | +1.33% |
S&P | 1459.99 | +1.63% |
The Metals:
Gold dropped down to $1720.80 by a little after noon EST, but it then rallied to as high as $1772.29 after the fed’s statement and ended with a gain of 1.98%. Silver soared to as high as $34.781 and ended with a gain of 4.34%.
Euro gold rose to about €1358, platinum gained $35 to $1682, and copper climbed 5 cents to about $3.75.
Gold and silver equities rose throughout most of the afternoon and ended with almost 5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 9/08 | 382K | 369K | 367K |
PPI | Aug | 1.7% | 1.2% | 0.3% |
Core PPI | Aug | 0.2% | 0.2% | 0.4% |
Treasury Budget | Aug | -$190.5B | -$192.0B | -$134.1B |
“The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.
“If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate,” the Federal Open Market Committee said today in a statement at the end of a two-day meeting in Washington.”
Tomorrow brings Retail Sales, CPI, Industrial Production, Capacity Utilization, Michigan Sentiment, and Business Inventories.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as the U.S. dollar index plummeted in reaction to the fed’s statement.
Treasuries traded mixed on uncertainty about future inflation.
The Dow, Nasdaq, and S&P gained over 1% on the fed’s mortgage plan.
Among the big names making news in the market today were Honeywell, Nestle, and Apple.
The Commentary:
“While Wall Street cheers the actions by the Fed to further enlarge its already bloated Balance Sheet, those of us who live on Main Street should get accustomed to further increases in our food and energy costs. What I find rather perverse, is the statement by the FOMC that "longer term inflation expectations remain stable". Yeah, maybe on the salaries and wages front but sure as hell not on the raw materials front.
Take a look at where hedge fund money is now flowing - right back into the hard or tangible assets category again. Get used to higher gasoline and heating oil prices and brace yourself for the food sticker shock you are going to experience in the weeks and months ahead.
I do not know whether to laugh at such utter stupidity or to weep for my nation's future. After the Fed has already conjured into existence the piddly sum of $2.5 Trillion for QE 1 and QE2, we now get another $40 billion/month of agency debt purchases for as far as the eye can see. A lot of good the first $2.5 Trillion did. This latest one will do the same - nothing as far as curing what the real problem is in the US economy.
This is supposed to keep long term interest rates low to encourage home mortgage borrowing. Right, I am sure all those folks who were holding their breath waiting for the yield on the Ten Year to drop further from the 1.4% level it was trading at six weeks ago before taking out that mortgage. Guess what, thanks to all this money creation from the both the Fed and the ECB, the bond market is now shifting away from the deflationary scenario towards one of inflation, regardless of the Bullsh*t in the FOMC about inflation expectations remaining subdued. The yield on the Ten Year is now 1.8% AFTER all this FOMC nonsense. Nice work guys! Maybe you can do yet another round and drive the Ten year over 2% for us.
It also looks as if the long bond might be breaking down the technical charts also. That tells us that LONG TERM INFLATION EXPECTATIONS ARE INCREASING. The exact opposite of what these serial liars told us this morning.
Make no mistake about it, the bond markets and the commodity markets are signaling inflation. Pay no attention to the worthless claptrap being spouted by these monetary buffoons. The real picture is in the price charts which are always forward looking.
By the way, the rally in the stock market, which is now sitting at higher levels than when the current inept-in-chief took over, is a perfect picture of what happens when inflation hits the paper asset category.
By the way, in case anyone did not notice, I am particularly incensed to see this QE nonsense. I am disgusted at what the long term impact is going to be on my children and their future. So, today, you all who are reading this, get to read a written rant instead of an audible one!”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Satyajit Das: Gold bugs haven’t lost the Midas touch
Patrick Heller: Suppression will cause higher rebounds for gold and silver
Felix Moreno de la Cova: Golden stability vs. fiat chaos
The Statistics:
As of close of business: 9/12/2012
Gold Warehouse Stocks: | 10,980,612.945 | -2,260.72 |
Silver Warehouse Stocks: | 141,082,758.698 | -105,261.02 |
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 | 1289.416 | 41,456,018 | US$71,841m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 134.07 | 4,310,443 | US$7,472m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 150.81 | 4,848,761 | US$7,907m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.16 | 358,789 | US$634m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 42.45 | 1,364,715 | US$2,214m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 3.722 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 191.98: +0.15 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,791.49: -12.06 change from yesterday’s data.
The Miners:
Newmont’s (NEM) inclusion in the Dow Jones Sustainability World Index, Randgold’s (GOLD) mine progress, and Huldra Silver’s (HDA.V) geochemistry results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Golden Minerals | AUMN+10.90% $7.02 |
2. Seabridge | SA +10.59% $19.64 |
3. Exeter | XRA +10.40% $1.91 |
LOSERS
1. Loncor | LON -3.48% $1.11 |
2. Pretivm | PVG-3.43%$13.50 |
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, 13 September 2012 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain About 2% and 4%
