-- Posted Friday, 1 February 2013 | | Disqus
| Close | Gain/Loss | On Week |
Gold | $1667.80 | +$3.00 | +0.54% |
Silver | $31.82 | +$0.37 | +1.99% |
XAU | 151.93 | +1.50% | +0.74% |
HUI | 400.00 | +1.55% | +0.24% |
GDM | 1173.34 | +1.52% | +0.56% |
JSE Gold | 2184.47 | +28.22 | -1.47% |
USD | 79.17 | -0.03 | -0.70% |
Euro | 136.54 | +0.75 | +1.47% |
Yen | 107.78 | -1.35 | -1.99% |
Oil | $97.77 | +$0.28 | +1.97% |
10-Year | 2.010% | +0.025 | +3.24% |
Bond | 142.84375 | -0.625 | -0.85% |
Dow | 14009.79 | +1.08% | +0.82% |
Nasdaq | 3179.09 | +1.18% | +0.93% |
S&P | 1513.17 | +1.01% | +0.68% |
The Metals:
Gold jumped over 1% higher to a new session high of $1681.95 in the hour of trade following this morning’s jobs report before it fell back to see a slight loss at $1662.46 at about 10AM EST, but it then rallied back higher midday and ended with a gain of 0.18%. Silver surged to as high as $32.144 and ended with a gain of 1.18%.
Euro gold fell to about €1222, platinum gained $8 to $1685, and copper climbed 5 cents to about $3.78.
Gold and silver equities saw about 2% gains at the open before they fell back to almost unchanged in the next 45 minutes of trade, but they then rallied back higher for most of the rest of trade and ended with about 1.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Jan | 157K | 180K | 196K |
Unemployment Rate | Jan | 7.9% | 7.7% | 7.8% |
Hourly Earnings | Jan | 0.2% | 0.2% | 0.3% |
Average Workweek | Jan | 34.4 | 34.5 | 34.4 |
Michigan Sentiment | Jan | 73.8 | 71.4 | 71.3 |
ISM Index | Jan | 53.1 | 50.5 | 50.2 |
Construction Spending | Dec | 0.9% | 0.5% | 0.1% |
The BLS net birth/death adjustment subtracted 314,000 payrolls from January’s data. Private Payrolls rose 166,000.
All of this week’s other economic reports:
Next week’s economic highlights include Factory Orders on Monday, ISM Services on Tuesday, Initial Jobless Claims, Productivity, Unit Labor Costs, and Consumer Credit on Thursday, and the Trade Balance and Wholesale Inventories on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as the U.S. dollar index and treasuries fell after this morning’s jobs data sent the Dow, Nasdaq, and S&P higher.
Among the big names making news in the market Friday were GM, Ford, Exxon, Chevron, Pemex, Pfizer, and Boeing.
The Commentary:
“I continue to hear from many readers about the unprecedented rally in the US equity markets that as of today has taken the Dow to within less than 200 points of its all time high and the S&P 500 to 5 year highs in spite of what nearly everyone I have spoken with believe is a lackluster economy.
It is the result of money flows - think about the enormous sums of liquidity that have been created by the actions of the Federal Reserve (not to mention the ECB and the BOJ). Then think about the abysmally low interest rate environment that this CB intervention has forced upon the economy. Then think about all that money looking to find a home where it can obtain YIELD.
What does that leave? Answer - equities.... Commodities (other than some select ones) are still concerned that the rate of economic growth (while improving globally) is certainly not leaping but is rather muddling along in the right direction. While that is all well and good, it is not enough to generate robust demand across the entirety of the commodity sector. Commodities in that sense have become a "stock picker's Market". In other words, traders/investors, rather than just blindly rushing pell mell into the entirety of the commodity sector, are being very selective as to which particular commodities or category of commodities that they want exposure to.
Gold is struggling in this environment because government inflation figures (which no one believes) are still very tame. Throw in the fact that the talk in the halls of economic power is that the worst ( the US credit crisis, the European sovereign debt crisis, Chinese slowdown fears, BOJ deflation fears, etc.) is behind us, and that is denting safe haven buying in gold as well as safe haven buying in the bond market.
As a matter of fact, bonds are increasingly being seen as a suckers' bet and that has the hot money leaving low interest rate paying bonds and flowing into equities to take advantage of double digit gains.
I have no idea where this will lead us but as long as the current sentiment is so lopsidedly wildlish bullish, equities will work higher and gold will remain rangebound. With the "worst is behind us" talk increasing, it will take a genuine return to fears of inflation emerging to get the gold market excited again.
Right now gold is completely focused on the extent and duration of the Fed's QE policy. You might have noticed that when the initial jobs number hit the wire this AM, it was considered very weak and thus got the gold bulls revved up on the idea that it would keep the Fed in the QE game for the rest of 2013 at a bare minimum. Then, not longer after that, the ISM's Manufacturing Index reading came in at a much higher than expected 53.1 versus 50.2 in December. The number was so much stronger than expected, that it immediately sent shivers down the backs of the gold market rekindling fears of a sooner-than-just-expected ending to the QE4 program. Gold surrendered half its gains in the matter of a few minutes.
That is where we are currently.
Keep in mind that all of what we are seeing has been accomplished by MONEY PRINTING IN UNPRECEDENTED amounts. Apparently, everything that we have ever learned about economics and currency creation out of thin air is wrong. Permanent prosperity can indeed be created out of thin air; recessions/depressions are obsolete and will never occur again; ever-increasing amounts of debt have no impact. The Central Bank ALCHEMISTS have won.... FOR NOW....”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Kitco cans analyst Nadler; gold rises $5.50
The Matterhorn interview: Robert Blumen on price formation in gold
Gold price rigging is as old as gold itself
The Statistics:
Activity from: 1/31/2013
Gold Warehouse Stocks: | 10,939,985.219 | -69,350.797 |
Silver Warehouse Stocks: | 157,127,816.369 | +2,550,785.217 |
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 | 1328.092 | 42,699,501 | US$71,054m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 160.93 | 5,174,145 | US$8,638m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 157.25 | 5,055,867 | US$8,244m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.16 | 358,789 | US$599m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 42.45 | 1,364,715 | US$2,214m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 220.35: +0.59 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,378.52: -64.67 change from yesterday’s data.
The Miners:
Lake Shore’s (LSG) credit facility draw down, Midway’s (MDW) senior management change, Seabridge’s (SA) filings, and Gold Field’s (GFI) loan facility were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Alexco | AXU +9.91% $4.66 |
2. Comstock | LODE+9.90% $2.11 |
3. Revett | RVM +6.11% $2.43 |
LOSERS
1. Turquoise | TRQ -1.16% $7.66 |
2. Gold Resource | GORO-0.66% $13.61 |
3. Aurizon | AZK -0.65% $4.61 |
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 Friday, 1 February 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 1% and 2% on the Week
