-- Posted Tuesday, 13 August 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1321.70 | -$14.20 |
Silver | $21.45 | +$0.11 |
XAU | 100.28 | -2.38% |
HUI | 246.65 | -2.70% |
GDM | 751.24 | -2.62% |
JSE Gold | 1292.36 | -5.09 |
USD | 81.73 | +0.34 |
Euro | 132.65 | -0.34 |
Yen | 101.88 | -1.32 |
Oil | $106.83 | +$0.72 |
10-Year | 2.715% | +0.110 |
T-Bond | 132.5625 | -1.5625 |
Dow | 15451.01 | +0.20% |
Nasdaq | 3684.44 | +0.39% |
S&P | 1694.16 | +0.28% |
The Metals:
Gold rose $5.39 to $1341.29 at about 3AM EST before it fell back to as low as $1318.70 in late morning New York trade, but it then edged back higher in afternoon trade and ended with a loss of just 1.06%. Silver slipped to $21.18 in Asia before it jumped up to $21.765 and then fell back off in London and New York, but it still ended with a gain of 0.52%.
Euro gold fell to €996, platinum gained $4.70 to $1495.50, and copper remained at about $3.31.
Gold and silver equities fell about 3% by early afternoon before they bounced back higher, but they still ended with over 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Retail Sales | July | 0.2% | 0.2% | 0.6% |
Retail Sales ex-auto | July | 0.5% | 0.3% | 0.1% |
Export Prices | July | -0.1% | - | -0.1% |
Export Prices ex-ag. | July | 0.0% | - | -0.2% |
Import Prices | July | 0.2% | - | -0.4% |
Import Prices ex-oil | July | -0.4% | - | -0.3% |
Business Inventories | June | 0.0% | 0.1% | -0.1% |
Tomorrow at 8:30AM EST brings PPI for July expected at 0.3%. Core PPI is expected at 0.2%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on worries about supply disruptions in Libya.
The U.S. dollar index saw decent gains on better than expected retail sales data that sent treasuries lower.
The Dow, Nasdaq, and S&P ended higher in mixed trade on economic optimism.
Among the big names making news in the market today were Yum, J.C. Penney, Eli Lilly, and JPMorgan.
The Commentary:
“Gold retreated from that stubborn band of chart resistance up near the $1340 level having failed to maintain its footing up there yesterday and today. There exists some very strong selling at that level, which adds to the significance of that zone. If and when it is broken, it will signify a strong shift in sentiment towards the metal. We will continue to closely monitor it.
Working against gold were several items today. The first is the strength in the US Dollar, especially against the Yen which is down over 1.5% against the greenback as I write this. Also lower are the Euro, Pound and Franc with the commodity currencies also lower. King Dollar is back, at least for today.
The second is the sharp selloff in the US Treasury market which is pushing yields up once again. Today the yield on the Ten Year is at 2.715% and is knocking on the door of that recent spike to a TWO YEAR HIGH. Recently, a rising interest rate environment in the US has tended to quell gold buying.
Thirdly is the mining shares failing to extend past the top of the recent trading range and drifting lower.
Fourth was news out of India that they are back to slapping additional import taxes on gold and silver in an effort to get their widening current account deficit under control. Gold traders in particular viewed that with alarm fearing a drop in gold demand. However, and I think this is important, China is on its way to replacing India as the largest demand source for physical gold. Just yesterday we got the news from the China Gold Association that Q2 demand hit a record of 385.5 metric tons. That is double from the previous year! It also continues to explain where a great deal of the gold being dishoarded over in the West is ending up.
In a sense, it was a trifecta plus ONE against gold in today's session but all in all the metal is holding fairly well. I personally think that the Chinese news is really positive for the metal especially when you hear reports of gold mines being shuttered and low grade ore deposits being drained. At some point the supply/demand equilibrium becomes unbalanced and price needs to rise to adjust it.
Please realize that this is longer term oriented but it is something that those who have an investment horizon of that nature should keep in mind.
For the shorter=term oriented traders - gold is knocking on the door at the very top of the range but still has not forced it open. IF (note the emphasis) the market can stick around here closer to the top of the range and stay above $1300, the onus is going to be on the bears to cap it off because the seasonal tendency for the metal to rise heading into the 4th quarter is going to make life tougher for them.
One has to wonder if the fact that the yield on that 10 year is going to get the Fed governors back out to the microphones for a little "verbal intervention" soon. The last time we had mortgage rates kicking up recently, some realtors were already making noise about the rise hurting the sales of higher-end homes due to the inability of buyers to qualify for loans now that interest rates had gone up. Not only that, but it is the BORROWING COSTS of the Federal Government that keeps the Fed awake at night.
Over in the grains corn was walloped lower today after staging a big short covering rally yesterday on immense volume. The USDA came up with some goofy number that I certainly do not believe for the final yield but it was enough to send a large contingent of shorts heading to the hills. Today, after some time to digest the number I think the market began pooh-poohing it and back in came the selling. Hey, gasoline is expensive at the pump but maybe I can afford to buy a box of Corn Flakes at the grocery store soon without having to leave a pint of my blood as a surety.
Silver remains impressive as does copper, both of which got a lift today on the news that Germany's economy is doing better than was expected. News that the Eurozone's largest economy has perked up is good for copper usage and silver usage as well. Remember, silver has been moving quite a bit in sync with the base metals recently having launched higher last week on the Chinese trade data. As long as the base metals are firm, silver bears are going to have to look for something else as an excuse to aggressively sell it.
I still need to see silver trading through $22.00, preferably through $22.50 or so to feel like it has a solid shot at beginning a more exciting trending move.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Toby Connor: The hidden agenda behind the bear raid
Ferguson, Kim on strange metal movements on Comex
The Statistics:
As of close of business: 8/12/2013
Gold Warehouse Stocks: | 6,999,516.912 | -101.33 |
Silver Warehouse Stocks: | 164,486,992.187 | -5,901.25 |
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 | 911.130 | 29,293,742 | US$38,895m |
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$5,870m |
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$474m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 42.53 | 1,367,368 | US$1,834m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 177.60: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,396.73: No change from yesterday’s data.
The Miners:
Banro’s (BAA) second quarter results, Seabridge’s (SA) agreement in principle with Nisga'a Nation, Avino’s (ASM) new consulting mining engineer, and First Majestic’s (AG) second quarter results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Exeter | XRA +7.22% $1.04 |
2. Mag Silver | MVG +7.12% $6.77 |
3. Great Panther | GPL +6.89% $1.04 |
LOSERS
1. Harmony | HMY -8.05% $3.77 |
2. Seabridge | SA -5.88% $13.92 |
3. Gold Fields | GFI -5.67% $5.82 |
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 Tuesday, 13 August 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver End Mixed
