-- Posted Tuesday, 2 April 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1575.30 | -$23.20 |
Silver | $27.25 | -$0.76 |
XAU | 128.70 | -3.94% |
HUI | 338.38 | -4.18% |
GDM | 994.82 | -4.11% |
JSE Gold | 1819.52 | -36.52 |
USD | 82.93 | +0.19 |
Euro | 128.15 | -0.28 |
Yen | 107.05 | -0.13 |
Oil | $97.19 | +$0.12 |
10-Year | 1.861% | +0.021 |
T-Bond | 144.4375 | -0.4375 |
Dow | 14662.01 | +0.61% |
Nasdaq | 3254.86 | +0.48% |
S&P | 1570.25 | +0.52% |
The Metals:
Gold fell to as low as $1573.70 by a little after 1PM EST before it bounced back higher in the last few hours of trade, but it still ended with a loss of 1.45%. Silver slipped to as low as $27.183 and ended with a loss of 2.71%.
Euro gold fell to about €1229, platinum lost $20 to $1568, and copper fell four cents to about $3.37.
Gold and silver equities fell throughout most of trade and ended with about 4% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Factory Orders | Feb | 3.0% | 2.6% | -1.0% |
Housing recovery boosts truck, SUV sales in March Reuters
Tomorrow at 8:15AM EST brings ADP Employment for March expected at 197,000 and at 10AM is the ISM Services report for March expected at 55.5.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended slightly higher in mixed trade.
The U.S. dollar index rose as the euro fell on record high unemployment in the 17-nation currency bloc.
Treasuries fell as the Dow, Nasdaq, and S&P rose on decent economic data in the US and relative calm in Cyprus.
Among the big names making news in the market today were Wal-Mart, Fannie Mae, BofA, and Dell.
The Commentary:
“The strength in the US Dollar had recently been coming mainly at the expense of the Japanese Yen. That is abating somewhat as the Yen is seeing some short covering and fresh buying as traders pare back expectations for AGGRESSIVE Bank of Japan action in the immediate future. It is clear that the Japanese monetary authorities want a lower yen but apparently the recent pressure from the rest of the G20 has caused them to ease back a bit on browbeating their own currency.
What is helping the Dollar more so recently is the weakness in the Euro which has not been able to recover from the blow it received as a result of the Cyprus debacle. That precedent setting raiding of bank deposits has left its mark, a mark which I believe will not ever completely heal.
Throw in the fact that we have a US equity market which has been goosed into the stratosphere, compliments of Ben Bernanke and the rest of the doves over at the FOMC, and you have the ingredients for further strength in the Dollar as by comparison to the rest of the world, the US economy looks decent.
I find it ironic that in this nation we have reached a point where we now define deviancy downward. The same holds true for our financial and economic standards. This abysmal "growth" we are witnessing in the US economy (again, thanks to QE and nothing else) is now heralded as good. There was a time when growth of this nature would have been mocked.
With a Federal debt expected to reach somewhere in the neighborhood of $20 trillion by 2016, with a massive and increasing unfunded entitlement crisis growing ever larger with the passing of each and every month, and with no real plan by the current administration to even remotely deal with these matters, the Dollar's honeymoon on the Foreign exchange markets will come to an abrupt end at some point. When that point occurs is anyone's guess right now but unless we have to rewrite the economic history books, the Dollar is going to eventually go the way of the British Pound.
If you notice on the chart, the Dollar enjoyed an uptrend that began in July 2011 and lasted through July 2012 at which point it transitioned to more of a broad sideways trend below 84. Dips to the 79 level have attracted consistent buying while sellers appeared at the 83 and higher level. That level closely coincides with the 61.8% Fibonacci retracement level noted.
If the Dollar can clear this level convincingly on a weekly basis, there is some light overhead resistance near 85 - $85.50 but beyond that, there does not look like much in its path for a run toward the 89 level.
I should also note here that this consistent strength in the US Dollar is continuing to set the hedge fund algorithms into selling commodities as a general trading strategy.
This is the reason for the continued weakness in silver, and in gold, I might add, although as I have stated in some private emails, I do not understand the strength in the crude oil market. With building stocks here in the US and with no sign of robust demand that I can see, I am honestly baffled as to why hedge funds want to own crude oil, given the fact that the commodity complex continues to reflect a global economy growing at quite a reduced rate.
See the chart of the CCI to understand why Silver is getting clocked and making fresh seven month lows. Were it not for strength in crude oil, the CCI would have broken that support line shown on the chart near the 540 level and begun retreating down towards the lower part of the downtrending price channel.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“This may be the shortest update ever posted, but its 100% to the point:
All markets are likely to be heavily influenced by Friday’s employment report.
A strong report should be good for stocks and the dollar but bad for gold (its almost always bad for gold around the monthly release anyway), very bad for silver as its quite weak technically, and not so hot for bonds.
However, a weaker than expected report and it can be the excuse the stock market needs for a correction but give gold the push it needs to get above $1,620 (a number we need before one can even start to think the worse is behind us).
Stay tuned.”- Peter Grandich, Grandich Letter
“My Dear Extended Family,
This is a massive attempt to break gold in order to camouflage the weakening Western banking sector. Paid bashers are flooding in to all pro-gold sites and many other pro-gold sites are under attack in other ways.
Gold banks are flogging the paper market seeking to depress the price but without selling too much.
It is so obvious that this is a gold bank organized strategy to keep gold under $1600. Old lows will hold and the reversal will be at a spiritual level.
My strategy is to simply to do nothing.”- Jim Sinclair, JSMineset.com
GATA Posts:
Alasdair Macleod: BIS is coordinating plans to expropriate bank depositors
The Statistics:
As of close of business: 4/1/2013
Gold Warehouse Stocks: | 9,244,869.274 | -1,198.19 |
Silver Warehouse Stocks: | 165,366,579.659 | +919,695.09 |
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 | 1217.047 | 39,129,285 | US$62,511m |
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$7,029m |
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$568m |
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 4.213 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 212.16: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,703.59: No change from yesterday’s data.
The Miners:
Eldorado Gold (EGO) mine update, Brigus Gold’s (BRD) drill results, Midway’s (MDW) Plan of Operations, McEwen’s (MUX) new gold discovery, Pacific Rim’s (PMU.TO) damage claim against the Government of El Salvador, Hecla’s (HL) senior note offering, and Coeur’s (CDE) board nomination were among the big stories in the gold and silver mining industry making headlines today.
WINNER
1. Solitario | XPL +1.91% $1.60 |
LOSERS
1. Allied Nevada | ANV-11.31%$14.43 |
2. Rubicon | RBY -9.88% $2.19 |
3. Eldorado | EGO -9.38% $8.50 |
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 2013
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-- Posted Tuesday, 2 April 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Over 1% and 2%
