-- Posted Friday, 12 July 2013 | | Disqus
| Close | Gain/Loss | On Week |
Gold | $1284.50 | -$0.90 | +5.14% |
Silver | $19.89 | -$0.29 | +5.46% |
XAU | 89.56 | -2.34% | +3.61% |
HUI | 225.03 | -2.45% | +4.23% |
GDM | 672.05 | -2.32% | +4.27% |
JSE Gold | 1201.57 | -13.55 | +2.77% |
USD | 82.96 | +0.25 | -1.76% |
Euro | 130.70 | -0.25 | +1.89% |
Yen | 100.68 | -0.36 | +1.88% |
Oil | $105.95 | +$1.04 | +2.64% |
10-Year | 2.601% | +0.027 | -4.20% |
Bond | 134.125 | -0.09375 | +1.25% |
Dow | 15464.30 | +0.02% | +2.17% |
Nasdaq | 3600.08 | +0.61% | +3.47% |
S&P | 1680.19 | +0.31% | +2.96% |
The Metals:
Gold fell $17.40 to $1268.00 at about 7AM EST, but it then rallied back higher throughout most of the rest of trade and ended with a loss of just 0.07%. Silver slipped to as low as $19.64 before it also rallied back higher, but it still ended with a loss of 1.44%.
Euro gold rose to about €983, platinum gained $1.50 to $1407, and copper fell slightly to about $3.16.
Gold and silver equities fell about 3.5% by midafternoon before they rallied back higher in the last couple of hours of trade, but they still ended with over 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
PPI | June | 0.8% | 0.3% | 0.5% |
Core PPI | June | 0.2% | 0.1% | 0.1% |
Michigan Sentiment | July | 83.9 | 85.0 | 84.1 |
All of this week’s other economic reports:
Next week’s economic highlights include Retail Sales, Empire Manufacturing, and Business Inventories on Monday, CPI, Net Long-Term TIC Flows, Industrial Production, Capacity Utilization, and the NAHB Housing Market Index on Tuesday, Housing Starts, Building Permits, and the fed’s Beige Book on Wednesday, and Initial Jobless Claims, the Philadelphia Fed, and Leading Economic Indicators on Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil climbed higher on the outlook for decent economic data along with FOMC stimulus.
The U.S. dollar index rose as the euro fell on worries about Portugal.
Treasuries saw modest losses as the Dow, Nasdaq, and S&P waffled near unchanged on mixed earnings reports.
Among the big names making news in the market Friday were Boeing, JPMorgan, Dell, UPS, Spreadtrum, US Airways, Wells Fargo, H&R Block, and Schneider Electric.
The Commentary:
“I have been watching developments in the crude oil and unleaded gasoline markets with a great deal of interest. This week's numbers from the EIA and other private sources shocked the market due to the extent of the drop in crude at Cushing and sent both markets on a tear higher. Crude is now trading close to $106/bbl as I write this and unleaded gasoline has pushed above the $3.10 mark (remember - that is a wholesale price not the pump price).
Frankly I do not see the US economy as strong enough to support either crude or unleaded gasoline at current prices but right now hedge funds are driving these markets higher and the momentum is strong to the upside. There certainly is no shortage of WTI from what I can see but a goodly portion of it appears to be leaving the US via exports to the EU and elsewhere.
One has to wonder however at one point the spike in gasoline prices at the pump is going to hit Mr. and Mrs. Consumer right between the eyes. You can make a case for rising energy prices being inflationary but you can also make a case for them being deflationary.
In the former case, energy costs are a major input in manufacturing of all kinds not to mention shipping/transportation costs of goods that need to move to market. Think also airlines, railroads, etc. Unless companies are willing to eat the higher costs, they have to raise prices to shore up profit margins.
In the latter case, consumers are not exactly awash with surplus income right now thanks mainly to the moribund labor markets and flat wages. If a larger chunk of their disposable income goes toward transportation expenses ( it is also summer vacation time), that results in them having less to spend at the local Wal-Mart.
I do think that if crude somehow manages to push past $110 (basis WTI) and especially if it climbs through $115, we are going to see some market impacts elsewhere. Let's keep a close eye on this.
By the way, those of you working the grains markets might have noticed the sharp selloff in the beans today. Yesterday's forecast changed and that, in combination with the bearish USDA reports yesterday, finally caught up with the corn and the beans. That might be the silver lining for consumers to help enable them to cope better with rising gasoline prices. If food prices begin to drop, it will take some of the pressure off their checkbooks.
Lots of variables to consider - one thing however is extremely important - gold, and especially silver, need an inflationary psyche to thrive. Right now we have energy up and food moving down. One is tending to cancel the other out. What we have to watch is to see whether or not the two groups will move in sync at some point.
Physical market tightness helps keep a floor of support under gold but it takes a genuine shift in sentiment towards one of inflation to make the yellow metal run. Until the gold shares can put in a better performance than they heretofore have managed to accomplish, I look for rallies in gold to be sold. Bulls are going to have to PROVE that they are determined to drive prices higher before the strong-handed shorts are going to panic.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
TF Metals Report: Why is JPM hoarding silver?
GGR's Arensberg, Tocqueville's Hathaway sense a short squeeze in gold
Russia Today TV interviews GATA Chairman Bill Murphy
The Statistics:
Activity from: 7/11/2013
Gold Warehouse Stocks: | 7,109,888.134 | -32,328.777 |
Silver Warehouse Stocks: | 165,962,281.947 | +6,003.01 |
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) AND Mexico Stock Exchange (BMV) | SPDR® Gold Shares | 939.075 | 30,192,195 | US$38,630m |
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$5,685m |
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 | 42.43 | 1,364,015 | US$1,713m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 179.00: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,124.98: No change from yesterday’s data.
The Miners:
Golden Star’s (GSS) second quarter results, Alamos gold’s (AGI) acquisition of Esperanza (EPZ.V) , and SilverCrest’s (SVL.V) $40 million credit facility were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Comstock | LODE +4.81% $1.96 |
2. Rio Alto | RIOM +1.99% $2.05 |
3. NovaGold | NG +1.50% $2.03 |
LOSERS
1. Gold Resource | GORO -14.97 $7.27 |
2. Alexco | AXU -6.98% $1.20 |
3. Allied Nevada | ANV -4.99% $5.71 |
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, 12 July 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 5% and 6% on the Week
