-- Posted Wednesday, 26 June 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1224.10 | -$53.20 |
Silver | $18.52 | -$1.07 |
XAU | 82.35 | -5.58% |
HUI | 206.87 | -6.06% |
GDM | 614.45 | -5.95% |
JSE Gold | 1175.74 | -56.87 |
USD | 82.95 | +0.42 |
Euro | 130.07 | -0.75 |
Yen | 102.27 | +0.05 |
Oil | $95.50 | +$0.18 |
10-Year | 2.539% | -0.050 |
T-Bond | 134.84375 | +0.6875 |
Dow | 14910.14 | +1.02% |
Nasdaq | 3376.22 | +0.85% |
S&P | 1603.26 | +0.96% |
The Metals:
Gold fell to as low as $1221.68 by a little before 3PM EST before it bounced back higher in the last hour of trade, but it still ended with a loss of 4.17%. Silver slipped to as low as $18.421 and ended with a loss of 5.46%.
Euro gold fell to about €941, platinum lost $49.50 to $1299, and copper fell slightly to about $3.05.
Gold and silver equities fell throughout most of trade and ended with about 6% losses.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q1 | 1.8% | 2.4% | 2.4% |
GDP Deflator | Q1 | 1.3% | 1.1% | 1.2% |
Kocherlakota Sees Unemployment Above 7% Until Second Half 2014 Bloomberg
Mortgage applications tumble as rates rise further: MBA Reuters
Tomorrow brings Initial Jobless Claims, Personal Income and Spending, Core PCE Prices, and Pending Home Sales.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil initially fell after the Energy Information Administration reported that crude inventories rose 18,000 barrels, gasoline inventories rose 3.7 million barrels, and distillates rose 1.6 million barrels, but it then rallied back higher in late trade and ended with a modest gain on optimism about fed stimulus.
The U.S. dollar index rose as the euro fell after European Central Bank President Mario Draghi said monetary policy will remain stimulative.
Treasuries rose after today’s $35 billion 5-year note auction sold at a yield of 1.484% with a bid to cover of 2.45.
The Dow, Nasdaq, and S&P rose on poor GDP data that eased worries about the fed cutting back on its stimulus program anytime soon.
Among the big names making news in the market today were Citigroup, Monsanto, and Hartford.
The Commentary:
“Several readers have asked me where I think this move lower in gold could finally exhaust itself. That is a good question.
All I have to go off of is the chart plus the knowledge that various costs of production for gold continue to surface from the investment houses. Some put the cost between $1200 - $1250. I have seen other estimates taking that down to $1150 or so.
The point is that gold is nearing levels that are going to make it extremely difficult for many mining operations to continue at any sort of profit. Already I am getting reports from S. African miners that are in trouble.
As I mentioned in a previous post, mine shut ins will only begin if gold moves to these aforementioned levels and stays there a while. If it just hits those levels and rebounds higher, the shut ins will not take place. I do believe however that we are not currently in an environment in which gold is going to violently rebound higher. Barring some unforeseen event, there is simply no reason to hold the metal especially in the face of rising interest rates and a widespread belief that inflation pressures remain subdued. Throw in the fact that the US Dollar is very strong, and that means gold is going to have a difficult time mounting any sustainable rally in price.
All this being said, the chart does provide us some interesting information when tied in with those cost of production estimates. Notice the lines that I have marked, "SUPPORT" on the chart and note the price levels that they come in near.
The first one is just about at the $1150 level. That number is mentioned above as one of the costs of production. Then you have a major 50% Fibonacci retracement level coming in near $1090 and another level of support near $1050.
I see things as follows: Gold has round number psychological number support at the $1200 level. Thus far in this meltdown, those round numbers have not been very good at holding on the downside; rather they have served fairly well as selling points for rallies.
If $1200 fails, then you have support down at the cost of production near the $1150 level. Seeing that markets tend to always overshoot prices because of margin calls and other assorted technical factors, if $1150 failed to hold, you could see another $100 or so drop in price. That would take gold into the next support level noted below the 50% Fibonacci level which is $1050.
Let's just say that I do not believe gold prices would stay down below that level for any length of time. I remember what seems an eon ago when it was buying from the INDIAN CENTRAL BANK that took the price of gold through the $1000 level. It never say that level again.
My thinking is that Central Bank buying will be quite intense should gold ever get to that level.
My view is that $1050 would represent a buying opportunity, should gold get down that low for long-term oriented investors. Remember, this is for investors, not traders.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“To anyone still favoring gold you may feel as I do; totally beaten up, defeated and like 12 years went out the window. Congratulations!!!
The parties who were behind what will go down in history as one of the greatest take downs of any market that began in earnest back in April, have pretty much now achieved everything they wanted. Gold and silver are bruised, battered and in shambles. One either feels its a loss cause and/or will not see the highs of 2011 again in their lifetime. The bandwagon calling gold dead, a relic and never to shine again is overloaded and busting at the seams (even though most on that bandwagon missed most if not all the ride up and will miss the next leg as well).
As much as all the members of the “Don’t Worry, Be Happy” crowd that litters the offices of the financial services industry and much of the spineless, gutless financial journalists who are lapdogs to the Talking Heads that lead the “happy” crowd around by their noses would like you now to believe (that the useless, non-interest paying relic known as gold is down and out), it is not over for gold. Most of the reasons to own it remain and thanks to what has happened (starting with the take down) have given new reasons to own gold.
Reasoning at this moment is basically useless as emotions of fear are fully entrenched. But in this dark, spinning out of control moment, I’m going to leave you with a movie clip and hopefully like me, there’s no surrender in your belly and as hard as it will be – join me and get back in this war.”- Peter Grandich, Grandich Letter
GATA Posts:
Patrick Heller: Gold rig reaches the desperation stage
An industry and a country that won't defend themselves may deserve to die
GoldMoney's James Turk's mid-year gold market review
The Statistics:
As of close of business: 6/25/2013
Gold Warehouse Stocks: | 7,590,165.719 | +6,676.788 |
Silver Warehouse Stocks: | 164,847,758.174 | -1,986.70 |
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 | 969.501 | 31,170,424 | US$38,518m |
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$5,486m |
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$439m |
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 16.232 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 180.55: -0.80 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,881.87: No change from yesterday’s data.
The Miners:
Freeport’s (FCX) appointment of a lead independent director and Huldra Silver’s (HDA.V) suspended operations were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU +1.10% $2.75 |
2. Turquoise Hill | TRQ +1.09% $5.56 |
LOSERS
1. Allied Nevada | ANV -11.11% $5.52 |
2. Pretivm | PVG -10.90% $5.72 |
3. Gold Resource | GORO-10.39% $8.19 |
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, 26 June 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Over 4% and 5%
