-- Posted Thursday, 20 June 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1278.50 | -$72.50 |
Silver | $19.63 | -$1.71 |
XAU | 90.20 | -7.45% |
HUI | 227.95 | -7.48% |
GDM | 677.19 | -7.57% |
JSE Gold | 1319.98 | -51.20 |
USD | 81.84 | +0.45 |
Euro | 132.20 | -0.72 |
Yen | 102.60 | -1.14 |
Oil | $95.40 | -$2.84 |
10-Year | 2.419% | +0.108 |
T-Bond | 139.90625 | -0.65625 |
Dow | 14758.32 | -2.34% |
Nasdaq | 3364.64 | -2.28% |
S&P | 1588.19 | -2.50% |
The Metals:
Gold fell throughout most of world trade and ended near its late session low of $1276.10 with a loss of 5.37%. Silver slipped to as low as $19.59 and ended with a loss of 8.01%.
Euro gold fell to under €968, platinum lost $55 to $1358.50, and copper fell 10 cents to about $3.04.
Gold and silver equities dropped throughout the day and ended with almost 8% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 6/15 | 354K | 340K | 336K |
Existing Home Sales | May | 5.18M | 5.00M | 4.97M |
Philadelphia Fed | June | 12.5 | -0.2 | -5.2 |
Leading Indicators | May | 0.1% | 0.2% | 0.8% |
There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell along with treasuries and the Dow, Nasdaq, and S&P as the U.S. dollar index climbed higher on prospects that the fed may pare back its stimulus program.
Among the big names making news in the market today were Chrysler, Microsoft, Smithfield Foods, and Morgan Stanley.
The Commentary:
“Europe wasted no time in responding to the Fed's comments when trading commenced over there as an avalanche of selling swamped over the gold market crushing the metal below support levels that continued to give way in succession. As stated in yesterday's missive - institutions want no part of the metal right now as there are hardly any players who see the least signs of inflation on the horizon. Never mind that the costs of so many basic services and goods are rising - those are not caught in the government's numbers nor is the fact that consumer wages remain stagnant.
The economy may be improving in the minds of some but cash strapped consumers are finding their disposable income shrinking meaning that borrowing is going to have to increase if they hope to maintain their "quality of life". While the Fed wants inflation and is dreadfully terrified of deflation, they do not seem to be having much success at inducing the former yet most Americans all seem to realize that everything they depend upon for life is going up in price. Odd isn't it?
I am not sure whether the tail is wagging the dog or the dog is wagging the tail but one can see the interplay between what is going on in the equities and what is going on in the bonds. As the bonds sink, rising interest rates send worries down the spines of the equity crowd which is creating a sort of vicious feedback loop.
Keep in mind, according to my view, the entire US stock market rally has been nothing but a Fed-induced, artificially created bubble which has sent stocks to ridiculously high levels based on the anemic strength in the economy. If the sentiment, that one has to buy every dip in stocks, begins to come into question, then an awful lot of highly leveraged one way bets are going to begin coming unwound. When I see movements of this magnitude, I know some players, big players, are in trouble and are getting mauled.
About the only thing moving higher today is the US Dollar. There was some strength in the front month July hog contract but given this environment, one wonders how long that is going to last. Bellwether copper was kicked in its rear end and of course the readers of this site know all too well what has happened to gold, and especially to silver.
Silver is an inflation play, pure and simple. If there is no inflation in the minds of these big institutions, then there is no reason to own that metal and even more reason to short it. That is what they are doing having broken it down below a support level that I thought would prove a much tougher nut to crack that it did.
This is so eerily reminiscent of 2008 although this time around, the bonds also are proving to be no safe haven as they were back then. As a matter of fact, it looks as if CASH is the place that investors are running into for the moment.
The Australian Dollar, always a fairly reliable harbinger of the broader commodity complex, was pummeled today especially once the news that China's growth had slowed. Along that same line, the GSCI, or Goldman Sachs Commodity Index, was also beaten with an ugly stick.
We will have to see whether one or two days of this is enough to clear the air and bring some stability into these markets but with the excessive amount of margin debt and with extremely large trades going awry, anything is possible.
I will get some analysis and a chart up of gold later on today. Let's just say for now that losing support at $1300 was a big deal, a very big deal. Judging from the massacre occurring in the gold and silver mining shares, we are seeing a complete rout of even some of the long term bulls. The HUI looks like it is now poised to drop all the way to 200, pretty much back to where it was 5 years ago during the depth of the 2008 credit crisis.
Apparently the laws of economics have been discredited as it is entirely possible to create Trillions in paper currencies with no impact whatsoever. The monetary history books are all going to have to be re-written to reflect this.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“My Dear Extended Family,
The economic system is failing, and to counter the now publicly perceived failure, central planners are manipulating the symptoms and not the problem.
Gold has never been easy.
Gold is the tell tale of a broken system.
Gold therefore is the barometer of the risk factors of economic conditions.
Therefore central planners must make, via paper gold, every effort to make it say, "All is Ok." For this reason I intend, knowing the system is in collapse, to buy gold with every resource I have at my disposal today and tomorrow.
I suggest those of stout heart do the same.
To the others who are committed to their limit, hunker down one more time knowing that in no more than the summer a brand new and most powerful bull market in gold will be at hand.
Respectfully,”- Jim Sinclair, JSMineset.com
GATA Posts:
Peter Grandich replies to Dennis Gartman
The Statistics:
As of close of business: 6/19/2013
Gold Warehouse Stocks: | 7,706,052.419 | -156.566 |
Silver Warehouse Stocks: | 164,318,933.244 | -67,582.898 |
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 | 999.561 | 32,136,873 | US$41,523m |
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$5,746m |
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$459m |
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 2.104 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 185.55: -0.78 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,998.93: No change from yesterday’s data.
The Miners:
Eurasian’s (EMXX) Option Agreement to sell the Akarca property, Gold Resource’s (GORO) drill results, and MAG Silver’s (MVG) CEO appointment were among the big stories in the gold and silver mining industry making headlines today.
No “winners” today.
LOSERS
1. Rio Alto | RIOM -19.67% $1.92 |
2. Pretivm | PVG -13.89% $6.26 |
3. Golden Minerals | AUMN -12.64% $1.59 |
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 Thursday, 20 June 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Markedly With Stocks, Bonds, and Oil
