-- Posted Wednesday, 3 April 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1558.00 | -$17.30 |
Silver | $26.97 | -$0.28 |
XAU | 123.24 | -4.24% |
HUI | 322.92 | -4.57% |
GDM | 950.47 | -4.46% |
JSE Gold | 1741.88 | -77.64 |
USD | 82.73 | -0.20 |
Euro | 128.47 | +0.29 |
Yen | 107.61 | +0.56 |
Oil | $94.45 | -$2.74 |
10-Year | 1.812% | -0.049 |
T-Bond | 145.375 | +0.9375 |
Dow | 14550.35 | -0.76% |
Nasdaq | 3218.60 | -1.11% |
S&P | 1553.69 | -1.05% |
The Metals:
Gold fell $11 to $1564.30 in Asia before it rose to see a slight gain at $1576.46 by a little after 10AM EST, but it then fell to as low as $1549.91 in the next three hours of trade and ended with a loss of 1.1%. Silver slipped to as low as $26.737 and ended with a loss of 1.03%.
Euro gold fell to about €1213, platinum lost $29.50 to $1538.50, and copper fell four cents to about $3.33.
Gold and silver equities fell over 5% by midafternoon before they bounced back higher at times, but they still ended with significant losses on the day.
The Economy:
Report | For | Reading | Expected | Previous |
ADP Employment | Mar | 158K | 197K | 237K |
ISM Services | Mar | 54.4 | 55.5 | 56.0 |
Mortgage applications fell last week: MBA Reuters
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 3/30 expected at 345,000.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil extended lower after the Energy Information Administration reported that crude inventories rose 2.7 million barrels, gasoline inventories fell 572,000 barrels, and distillates fell 2.3 million barrels.
The U.S. dollar index fell on weaker than expected economic data.
Treasuries rose as the Dow, Nasdaq, and S&P fell on worries about the economy.
Among the big names making news in the market today were US Airways, Zynga, and GM.
The Commentary:
“Today's big move lower in gold, coupled with a sharp drop in WTI crude oil and further weakness in the Continuous Commodity Index, could be the beginning of a signal change that the global economy, despite the best efforts of the Central Banks and their unlimited money creation, is entering another period of slowing growth.
Quite frankly, the commodity complex has been signaling deflation for some time now with speculative flows OUT of the base metals and some of the foods. Grain prices are working lower as the high prices brought about by last year's drought have effectively shut off demand while end users wait for much cheaper South American supplies to make their way into the distribution channel.
All the while, against such a backdrop where hard asset prices are falling, the US equity markets have been powering higher and higher. The last report I read stated that they had now reached levels exceeding the height of the Towel of Babel related in the book of Genesis and that it had gotten the attention of the market gods.
It seems as if that disconnect that I spoke to some time back between Dr. Copper and the rest of the CCI, and the US equity markets has been getting even wider; that is, until today. It looks like we might, and I want to emphasize this word "might", be seeing some reality hit these idiotic equity bulls who keep shoving prices upwards no matter what happens in this world.
I was going to post a story on April Fools Day about California experiencing "THE BIG ONE" and subsequently falling into the ocean and disappearing somewhere with Atlantis, and then relate how the "BUY TV" analysts viewed it as wildly bullish because off all the construction work it would create with dirt having to be trucked in to fill in the gaping hole that was left.
Seriously, the way the Cyprus situation was swept under the rug and quickly forgotten about, the complete ignoring of rising tensions involving that nut in North Korea, the manner in which the labor participation rate in this country keeps sinking, (just name some other negative factory) and yet day after day after day seeing a rising stock market to levels that are this preposterous, makes me wonder if the story of the Pied Piper of Hamlin was actually an allegory about today's investor/trader class.
What I find quite noteworthy today is that with all the selling pressure in the commodity complex, along with the very weak equity markets here in the US and with rising bond prices (falling interest rates), the US Dollar was actually experiencing more selling than buying. That is interesting because even the Japanese Yen is experiencing that same idiotic safe haven buying that we see during these periods when investors get nervous. Normally that pushes the Dollar higher as well since it has been the go to safe haven for some time now. Not today. I do not know what to make of that yet but want to see some further price action the remainder of this week before commenting. It might be just a one hit wonder.
Also, remember yesterday when I was questioning what crude oil is doing up at these levels given the lack of growth globally and rising stocks at Cushing, not to mention the weakness in the commodity complex as a whole. Well, today it got clocked and is down over 2% as I type these comments. Let's see where it ends the day before drawing too many conclusions however.
The same goes with the S&P 500. Look at this chart...
The S&P just missed putting in a downside reversal because its session high did not exceed the session high from yesterday. Nonetheless, the sell off has been strong and is coming on high volume. We have seen these fake outs before however in this market as we just had one show up on the chart a mere six weeks ago that lasted every bit of a few days before we once again went on to make yet another new high. Maybe this one is for real. We'll see.
Momentum based indicators show a definite loss of upside momentum here but they have been doing that for some time now and yet the market keeps going up. It is almost as if this thing is being shoved higher by some mysterious hand that will not let it fall. If these hedge fund algorithms ever shift into a "SELL" mode in these equities, look out! They are all on one side of the boat in a big way.
As far as gold goes, it either holds here in this support region between $1550 - $1525, or it is going to sink to $1480 for starters. With the gold stocks continuing to stink up the place, gold is losing any help whatsoever from that quarter. Central Bank buys out of Asia and elsewhere have been keeping this floor solid in the gold market so they had better not falter in those purchases or else...
I am not even going to put up a chart of the HUI at this point as it is simply too ugly. There is a pivot region near 300 and that is more than likely where the pathetic thing is headed unless we see some spark to the gold price.
I will leave you with a ratio chart of the HUI to Gold price. It is now closing in on the 2008 low. Keep in mind, this is AFTER FOUR ENORMOUS QUANTITATIVE EASINGS attempts. What in the world will it take for these stocks to do anything if 4 rounds of QE cannot take them higher? Makes me seriously wonder if some of the gold mining companies are going to survive to be honest.
In the long run such a thing would bring less supply onto the world market which would be supportive for prices moving forward, not to mention allowing those healthy companies which remain to become more profitable. The problem is, how long is the long run going to take to get here......?”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Gold Investing News interviews GATA secretary on gold price suppression
The Statistics:
As of close of business: 4/2/2013
Gold Warehouse Stocks: | 9,246,067.459 | +1,198.19 |
Silver Warehouse Stocks: | 165,127,844.339 | -238,735.32 |
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 | 1208.923 | 38,868,092 | US$61,519m |
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$6,981m |
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$564m |
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 8.124 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 211.33: -0.83 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,703.59: No change from yesterday’s data.
The Miners:
Gold Fields’ (GFI) strike, Kinross Gold’s (KGI) board appointments, Entree Gold’s (EGI) 2012 results, Silvercorp’s (SVM) response to a press article, and Aurcana’s (AUN.V) exploration program were among the big stories in the gold and silver mining industry making headlines today.
WINNER
1. Comstock | LODE +0.50% $2.00 |
LOSERS
1. Golden Star | GSS -8.90% $1.33 |
2. ITH | THM -8.45% $1.30 |
3. Almaden | AAU -8.29% $1.77 |
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 Wednesday, 3 April 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Over 1% More
