-- Posted Monday, 25 February 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1594.60 | +$14.10 |
Silver | $29.03 | +$0.27 |
XAU | 138.05 | +1.28% |
HUI | 364.50 | +1.35% |
GDM | 1072.01 | +1.58% |
JSE Gold | 1943.29 | -0.72 |
USD | 81.76 | +0.33 |
Euro | 130.68 | -1.24 |
Yen | 109.32 | +2.22 |
Oil | $93.11 | -$0.02 |
10-Year | 1.895% | -0.072 |
T-Bond | 159.25 | +2.625 |
Dow | 13784.17 | -1.55% |
Nasdaq | 3116.25 | -1.44% |
S&P | 1487.85 | -1.83% |
The Metals:
Gold climbed $13.90 to $1594.40 at about 7:20AM EST before it fell back to $1584.10 by late morning in New York, but then rose to a new session high of $1597.00 in afternoon trade and ended with a gain of 0.89%. Silver rose to $29.243 in London before it fell back to $28.90, but it still ended with a gain of 0.94%.
Euro gold rose to about €1221, platinum lost $5 to $1603.50, and copper remained at about $3.54.
Gold and silver equities rose about 1.5% at the open and remained near that level for the rest of the day.
The Economy:
White House Says Stalemate Means Automatic Cuts Will Hit Bloomberg
Everything you need to know about Congress is (and isn’t) doing this week WashingtonPost
There were no major economic reports today. Tomorrow brings the Case-Shiller 20-city Index, the FHFA Housing Price Index, New Home Sales, and Consumer Confidence. Bernanke also starts his semiannual testimony to Congress before the Senate Banking Committee. He’ll visit the Housing Financial Services Committee on Wednesday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil erased early gains and ended slightly lower as the U.S. dollar index and treasuries reversed higher on uncertainty about Italy’s elections that sent the Dow, Nasdaq, and S&P almost 2% lower.
“U.S. stocks declined, following an early rally in the Standard & Poor’s 500 Index, amid concern Silvio Berlusconi’s coalition will prevail in Italy’s Senate elections and move the nation away from austerity plans.”
Today’s $35 billion 2-year note auction sold at a yield of 0.257% with a bid to cover of 3.33.
Among the big names making news in the market today were Dillard's, BP, Sinopec, CME, Lowe’s, Barnes & Noble, and GM.
The Commentary:
“Apparently the equity bulls are right back to work after "suffering" through a whopping two day correction in their permanently rising stock market. As you know by now, stocks took a beating on Wednesday when the FOMC minutes were hinting at some internal dissension among some of the various FOMC members in regards to the duration of the QE program. They then saw further selling on Thursday but come Friday, were right back up again completely erasing the losses of Thursday and cutting into the losses made on Wednesday.
It appears that traders have now come back to the view that the loudest voices in favor of cutting short the extent of QE were coming from the NON-VOTING members of the FOMC. The talk now has become that the VOTING MEMBERS are not going to cut anything short anytime soon.
I expect Bernanke to say as much in this coming week's appearance before the Congress on Tuesday and Wednesday.
If that is the case, and Ben issues soothing words to the crack addicts, then expect the equity bulls to go right back to doing their thing and driving stock prices relentlessly higher. If he even hints at some sort of agreement with the early cessation of QE, then Katie bar the door for stocks. We will certainly be watching very closely to see how the precious metals respond to this.
Notice the chart below - I have set up two indicators for you to observe. The first is the ADX or Directional Movement Indicator that it is more commonly known by. The black line is the ADX. It rises in a trending market and falls when the market is not trending or in the process of consolidating (market tends to move sideways). Note that the BIG DOWNSIDE REVERSAL pattern in the S&P 500 that I noted earlier this past week caused that line to finally turn lower. That indicates a break in the uptrend. That being said, there is still no sell signal in this indicator. At this point it is indicating a pause, nothing more.
Normally, one of the most powerful technical indicators is one of these downside reversal patterns that come on huge volume. Typically they portend the end of an uptrend, especially one of such long duration and one which has experienced such few corrections over its course. To witness the eagerness of buying which we saw Friday is therefore no mean thing! You talk about "animal spirits" of investors. These guys are so juiced up that they could power light bulbs with their bare hands!
Note also the indicator below which I will leave nameless for the time being. It basically measures momentum. What I have been watching since the rally at the beginning of the year has commenced, has been the loss of upside momentum even as this market has made one new high after another. In other words, this market keeps grinding higher and higher and higher even as more and more momentum or upward energy is dissipating. I get the sense of a market that is at levels that are so ridiculous that more and more traders are getting increasingly nervous yet no one wants to aggressively sell the thing out of fear of the Fed's punch bowl.
We have seen what will happen to this "national security concern" if it believes that Uncle Ben is going to beginning preaching the virtues of monetary sobriety. Is there anyone out there who genuinely believes that the Fed is going to make sure that it crashes the stock market? Just who is in control here - the investing/trading class which just pitched a hissy fit over the FOMC minutes or the Fed which has now become captive to its own QE program.
Think about what we are witnessing here - The nation is addicted to cheap money as much as it is addicted to hedonism and vice and yet the Fed cannot pull the plug or more aptly, cut off the supply of the drug for fear of killing the patient. Our political leaders cannot cut a measly 2 pennies out of a dollar's worth of spending without telling us that Armageddon is about to occur; the madman running N. Korea is working on intermediate range nuclear missiles and is even disturbing its only ally, China by so doing; Gasoline prices are topping $5.00 in some locales; Social security tax increases are hitting the entire working population and further scrimping already dwindling disposable income; health care costs are going UP not DOWN as we were assured that they would be once the grossly misnamed "Affordable Health Care" act was deceitfully rammed through Congress; we've got surveillance drones flying all over the damned country spying on us and yet everything is just peachy keen...
I have said it before and will say it again as much as it pains me to do so; America is going the way of ancient Rome as surely as the sun rises in the East. The Fed is doing the modern version of coin clipping. What is next, price controls under edict of death for merchants who hike them? No worries however - the stock market is rising so all is right with the world.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Citigroup gave Lew a bonus for getting appointed Treasury secretary
Jay Taylor discusses gold market manipulation and Fed propaganda
Japan seen nominating 'deflation basher' as central bank chief
Why central banks need to hold gold way down or get it up to $10,000
VIA MAT won't vault for U.S. taxpayers anymore but no effect on GoldMoney
The Statistics:
As of close of business: 2/22/2013
Gold Warehouse Stocks: | 10,587,921.341 | -62,797.71 |
Silver Warehouse Stocks: | 161,325,685.383 | +511,836.203 |
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 | 1280.674 | 41,174,947 | US$64,889m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 138.13 | 4,441,056 | US$7,053m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 152.66 | 4,908,200 | US$8,004m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.16 | 358,789 | US$570m |
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 9.632 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 215.89: -0.76 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,602.76: No change from yesterday’s data.
The Miners:
Hecla’s (HL) fourth quarter results and dividends, NOVAGOLD’s (NG) discovery, Lake Shore Gold’s (LSG) asset value reduction, Richmont’s (RIC) new resources, Endeavour Silver’s (EXK) reserve and resource growth, and Allied Nevada’s (ANV) year end results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Rubicon | RBY +13.4% $2.37 |
2. Tanzanian Royalty | TRX +10.84% $3.68 |
3. Mines MGMT | MGN +10.68% $1.14 |
LOSERS
1. Gold Reserve | GRZ -8.03% $2.52 |
2. Freeport | FCX -2.90% $31.51 |
3. Pretivm | PVG -2.67% $8.01 |
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 2013
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-- Posted Monday, 25 February 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain Almost 1%
