-- Posted Tuesday, 26 March 2013 | | Disqus
Please Note: There will not be any Gold Seeker Reports for the remainder of the week.
| Close | Gain/Loss |
Gold | $1599.10 | -$5.30 |
Silver | $28.70 | -$0.11 |
XAU | 134.42 | -0.78% |
HUI | 352.16 | -0.83% |
GDM | 1036.68 | -0.87% |
JSE Gold | 1861.43 | -19.01 |
USD | 82.88 | +0.02 |
Euro | 128.62 | +0.08 |
Yen | 105.83 | -0.41 |
Oil | $96.34 | +$1.53 |
10-Year | 1.906% | -0.009 |
T-Bond | 143.59375 | +0.09375 |
Dow | 14559.65 | +0.77% |
Nasdaq | 3252.48 | +0.53% |
S&P | 1563.77 | +0.78% |
The Metals:
Gold dropped down to $1594.50 by a little before 10AM EST, but it then bounced back higher into the close and ended with a loss of just 0.33%. Silver slumped to as low as $28.62 and ended with a loss of 0.38%.
Euro gold fell to about €1244, platinum lost $6 to $1573, and copper remained at about $3.45.
Gold and silver equities traded mostly slightly lower and ended with less than 1% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Goods | Feb | 5.7% | 3.8% | -3.8% |
Durable Goods -ex trans | Feb | -0.5% | -0.2% | 2.9% |
Case-Shiller 20-city Index | Jan | 8.1% | 7.5% | 6.8% |
Consumer Confidence | Mar | 59.7 | 66.9 | 68.0 |
New Home Sales | Feb | 411K | 426K | 431K |
Tomorrow at 10AM EST is the Pending Home Sales report for February expected at 2.0%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on mostly better than expected economic data.
The U.S. dollar index found slight gains as the euro remained near 4 month lows on worries about Cyprus.
Treasuries remained modestly higher after today’s $35 billion 2-year note auction sold at a yield of 0.255% with a bid to cover of 3.27.
The Dow, Nasdaq, and S&P rose on decent economic data.
Among the big names making news in the market today were Dell, J.C. Penney, Summly, and Ford.
The Commentary:
“It is my opinion that last week the European Central Bank was quite active in the Foreign exchange markets defending the Euro and preventing the breakdown below the 1.29 level. Watching the price action, and this is from the perspective of a long time trader, there was no fundamental reason I could see for the Euro to experience intraday rallies of the magnitude that it was seeing, based on the deteriorating conditions surrounding Cyprus. It was if some magic hand was pushing it back up and away from the 1.29 level on any approaches there with enough force to take it all the way through 1.30 and then some.
Today, based on the earlier comments of the Dutch Finance Minister, that support zone collapsed on very large volume. I have no doubt whatsoever that it was this event that set Mr. Dijsselboem scurrying back to the microphones to disavow what he so arrogantly announced previously during the trading session, to wit - that the arrangement made with Cyprus would henceforth serve as a "template" for dealing with problem banks in problem Eurozone nations.
While he may backtrack and attempt to spin those earlier comments, which were quite clear I might add, the damage has been done as the proverbial cat is now out of the bag. Regardless of the subterfuge and deceitful backpedaling, it is now abundantly clear that the monetary officials in the Eurozone regard taxpayer deposits as, in actuality, belonging to the state.
As usual, we are now witnessing the resort to the typical left leaning claptrap about "only the wealthy" being forced to contribute to the savings of the banks but that begs the question that any sane individual would be asking under such conditions, "Why the hell should I as a depositor be the least bit concerned about the safety of my life's savings in any bank?" After all, that defeats the entire reason for depositing money in a bank in the first place. If the banks cannot be trusted, and if the government officials are all too willing to raid, confiscate, steal, the money of the depositors in order to bail out the unholy nexus between the banks and the government, how in the world can that inspire the least bit of confidence in the banking sector anywhere in the Eurozone that similar issues exist?
What we are witnessing is the rotten stench of decaying balance sheets brought on by years and years of overspending. As long as there were enough banks willing to buy that government debt, the party and the recklessness could go on. However, Mr. Market has a way of eventually bringing reality home to even the most obtuse of individuals and that is precisely what has now happened.
Quite simply - who in their right mind would be willing to buy the bonds of these troubled nations? And more precisely, whither goest Cyprus at this point? Its economy is a wreck and in my view will continue to be so into the foreseeable future. Its economy was based primarily on banking and tourism. At this point, who would want to travel there other than those wanting a bird's eye view of the train wreck and as for banking.... that goes without saying.
While gold is certainly being capped above the $1610 level, it is continuing to attract dip buyers on trips down towards support at $1585. It ran down there earlier today only to encounter sufficient buying to propel it back above the $1600 level. Clearly that in itself, while not an outright victory for the bulls, is a defeat for the bears who no doubt were shocked by the severity of the buying pressure that came into the market.
Bulls still need to clear $1620 to force some of these shorts out of the market. It might be tough to do that as long as the capping operation is ongoing but my guess is that it will take a tremendous amount of physical gold sales to continuing holding the price down.
As usual, the gold shares once again were of no help to the actual metal. I read a report today somewhere that stated if gold were to fall as low as $1,000, many of the entities involved in gold mining today would no longer be viable. The way some of these shares are acting, they already no longer look viable, truth be told.
It should be noted that the party in the global equity markets, brought on my near endless conjuring of "money" into existence by the Central Banks primarily of the West, has been handed a citation by the police and told to tone it down as the neighbors are complaining of the noise. Obviously this is a no-no to the best laid plans of mice and men, those being the monetary officials who I would lump under the category more of mice than men, since I consider them despicable Cretans and parasites. That means all the stops must be pulled out to keep Cyprus afloat and assuage any rising concerns among the investor class.
The entire thing boils down to keeping this ephemeral confidence from waning one iota. It is all about illusions, perceptions and subterfuge. ”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Ted Butler: The good, bad, and ugly
BRICS nations plan new bank to bypass World Bank, IMF
Still not sentenced, Liberty Dollar founder moves for acquittal or retrial
'Too big to fail' suddenly becomes 'too crooked to save'
The Statistics:
As of close of business: 3/25/2013
Gold Warehouse Stocks: | 9,279,400.849 | -32.15 |
Silver Warehouse Stocks: | 164,764,306.995 | +117,508.07 |
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 | 1221.260 | 39,264,721 | US$62,721m |
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$7,106m |
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$574m |
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: 211.07: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,688.56: No change from yesterday’s data.
The Miners:
AuRico’s (AUQ) earnings, ASA Gold’s (ASA) earnings, Aurizon’s (AZK) resumed operations, and Midway’s (MDW) permit were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Midway | MDW +2.46% $1.25 |
2. Banro | BAA +2.06% $1.98 |
3. Fortuna | FSM +1.89% $4.32 |
LOSERS
1. Vista Gold | VGZ -7.69% $2.04 |
2. AuRico | AUQ -7.68% $6.13 |
3. Solitario | XPL -4.40% $1.52 |
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 Tuesday, 26 March 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver End Slightly Lower
