-- Posted Friday, 28 June 2013 | | Disqus
| Close | Gain/Loss | On Week |
Gold | $1232.20 | +$33.10 | -4.78% |
Silver | $19.62 | +$1.12 | -2.19% |
XAU | 90.15 | +6.88% | -1.38% |
HUI | 228.09 | +7.83% | -1.18% |
GDM | 676.33 | +7.48% | -1.39% |
JSE Gold | 1233.16 | +61.31 | -4.69% |
USD | 83.16 | +0.24 | +0.97% |
Euro | 130.15 | -0.21 | -0.85% |
Yen | 100.69 | -0.93 | -1.61% |
Oil | $96.56 | -$0.49 | +3.06% |
10-Year | 2.478% | -0.005 | -1.43% |
Bond | 135.75 | +0.15625 | -2.97% |
Dow | 14909.60 | -0.76% | +0.75% |
Nasdaq | 3403.24 | +0.04% | +1.37% |
S&P | 1606.28 | -0.43% | +0.87% |
The Metals:
Gold waffled between $1180.26 and $1211.89 in Asia before it fell back to $1187.58 at about 10AM EST, but it then screamed back higher for most of the rest of trade and ended near its late session high of $1233.12 with a gain of 2.76%. Silver surged to as high as $19.64 and ended with a gain of 6.05%.
Euro gold rose to almost €947, platinum gained $23 to $1337, and copper rose slightly to about $3.05.
Gold and silver equities climbed steadily higher throughout most of the day and ended with almost 8% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Chicago PMI | June | 51.6 | 55.5 | 58.7 |
Michigan Sentiment | June | 84.1 | 82.7 | 82.7 |
All of this week’s other economic reports:
Next week’s economic highlights include the ISM Index and Construction Spending on Monday, Factory Orders on Tuesday, ADP Employment, the Trade Balance, and ISM Services on Wednesday, Independence Day on Thursday, and Initial Jobless Claims and June’s jobs data on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended slightly lower as the U.S. dollar index rose after “Fed Governor Jeremy Stein highlighted September as a possible time when the U.S. central bank will need to consider reducing the quantitative easing program.”
Treasuries were little changed and the Dow, Nasdaq, and S&P traded mixed as economic optimism was offset by worries about what the fed will do.
Among the big names making news in the market Friday were GE, Shutterstock, Arch Coal, J&J, and Blackberry.
The Commentary:
“Dow Jones is reporting that some very large bets on a rise in the gold price from current levels are currently being made in the largest gold ETF, GLD.
Gold has dropped to within spitting distance of support near $1150 before rebounding higher as it was led up by Silver in today's session.
The catalyst seemed to come from the Consumer Sentiment number which was quite strong, surprisingly so. Under recent conditions, this sort of number would have been expected to generate strong selling across the precious metals sector as it further feeds the theory of tapering to begin earlier than expected.
What seems to have happened however is that when the wave of selling did not materialize, bottom pickers, as well as extremely profitable shorts, decided that was a signal to either book some profits or establish some new long positions.
Further complicating matters - it is not only the End-of-Month positioning and book squaring that is at work but also the even larger End-of-Quarter movements. Large investment funds and hedge funds will generally square their books especially after amassing such large profits on the drop in gold and gold shares over this past quarter. That generates another wave of buying.
I prefer to see what gold does next week as we start a new quarter to get a better read on whether or not we have established a lasting bottom. I still expect rallies to be sold in this market but from what level is a bit unclear. A second test of the overnight low down near $1180 would be most revealing as to whether the carnage in this market has finally come to an end.
The mining shares are quite strong today and continue to build on yesterday's mild gains. That is a good sign as they led this market lower and I believe will lead it higher when a permanent bottom is finally forged.
Take a look at this quarterly gold chart. This appears to be worst quarterly performance for gold in history!
If we ignore that spike high to $1900 and draw out Fibonacci retracement levels off the triple top at $1800, gold has bounced off the 38.2% Fibonacci retracement level of the entire move beginning back in 2001. That level is near $1200 (1207 to be exact). That is constructive but quite frankly, this market has been beaten up so badly that a bounce of some sort was way overdue. I prefer to err on the side of caution as gold is entering a seasonally slow period for demand with the summer doldrums coming up. That, plus the fact that we have a big June payrolls number coming up soon and if that thing comes in stronger than the markets expect, it is going to further feed the TAPER psychology.
Let's be clear - all the way down we have had bottom callers and none of them have been correct. Eventually they will get it right but as the old saying goes, even a stopped clock is right twice a day! Let's monitor the subsequent price action for a while before getting too dogmatic. Remember the trend in gold is now down on the shorter term charts so specs will be looking to sell rallies unless something changes on the QE front or the psychology in the market changes to one of expecting a pickup in inflation.
There is no need to be a hero and try nailing an exact bottom. It is next to impossible to do that on a consistent basis. Traders do not need to call exact tops or exact bottoms for that matter. All they need to do is to spot the change in trend and position themselves to take 60-70% out of that trend to make money. Remember, Bottom pickers and Top pickers eventually become cotton pickers!”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Longwave Group's Ian Gordon isn't puzzled by the attack on gold
Jeff Nielson: Gold squeeze in India stokes silver demand
Comex will run out of gold soon and go to cash settlement, Sinclair says
Gold rush 2013 style has Dubai scrambling
The Statistics:
Activity from: 6/27/2013
Gold Warehouse Stocks: | 7,498,221.443 | -57,797.981 |
Silver Warehouse Stocks: | 164,495,111.457 | +49,208.453 |
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$37,138m |
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$5,418m |
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$440m |
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: 179.04: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,905.88: +15.01 change from yesterday’s data.
The Miners:
Comstock’s (LODE) AGM results and Excellon’s (EXN.TO) progress update were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Alexco | AXU +22.97% $1.12 |
2. Sandstorm | SAND +19.63% $5.85 |
3. Fortuna | FSM +18.21% $3.31 |
LOSERS
1. Golden Minerals | AUMN-2.16% $1.36 |
2. McEwen | MUX -0.59% $1.68 |
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 Friday, 28 June 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Weekly Wrap-Up: Gold and Silver Fall About 5% and 2% on the Week
