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Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 4% and 13% on the Week
By: Chris Mullen, Gold-Seeker.com


-- Posted Friday, 16 August 2013 | | Disqus

 

Close

Gain/Loss

On Week

Gold

$1373.00

+$10.10

+4.60%

Silver

$23.18

+$0.25

+13.29%

XAU

109.26

-1.59%

+11.88%

HUI

271.14

-1.93%

+8.35%

GDM

823.10

-1.69%

+12.51%

JSE Gold

1413.08

+81.81

+22.9%

USD

81.28

+0.15

+0.21%

Euro

133.34

-0.13

-0.08%

Yen

102.45

-0.29

-1.41%

Oil

$107.46

+$0.13

+1.41%

10-Year

2.829%

+0.074

+9.65%

Bond

131.03125

-1.03125

-2.60%

Dow

15081.47

-0.20%

-2.23%

Nasdaq

3602.78

-0.09%

-1.57%

S&P

1655.83

-0.33%

-2.10%

 
 

 

The Metals:

 

Gold climbed almost $10 to $1372.57 in Asia before it fell to see a $5.20 loss at $1357.70 in London, but it then rose to as high as $1379.35 in New York and ended with a gain of 0.74%.  Silver surged to as high as $23.408 and ended with a gain of 1.09%.

 

Euro gold climbed over €1029, platinum gained $1.50 to $1524.00, and copper remained at about $3.36.

 

Gold and silver equities rose over 1% at the open before they fell to see over 2% losses in the next hour of trade and then bounced back higher at times, but they still ended with over 1.5% losses on the day.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Housing Starts

July

896K

895K

846K

Building Permits

July

943K

934K

918K

Productivity

Q2

0.9%

0.0%

-1.7%

Unit Labor Costs

Q2

1.4%

-0.3%

-4.2%

Michigan Sentiment

Aug

80.0

85.1

85.1

 

All of this week’s other economic reports:

 

NAHB Housing Market Index - August

59 v. 56

 

Philadelphia Fed - August

9.3 v. 19.8

 

Capacity Utilization - July

77.6% v. 77.7%

 

Industrial Output - July

0.0% v. 0.2%

 

Net Long-Term TIC Flows - June

-$66.9B v. -$27.0B

 

Empire Manufacturing - August

8.6 v. 9.46

 

CPI - July

0.2% v. 0.5%

 

Core CPI - July

0.2% v. 0.2%

 

Initial Claims - 8/10

320K v. 335K

 

PPI - July

0.0% v. 0.8%

 

Core PPI - July

0.1% v. 0.2%

 

Business Inventories - June

0.0% v. -0.1%

 

Export Prices - July

-0.1% v. -0.1%

 

Export Prices ex-ag. - July

0.0% v. 00.2%

 

Import Prices - July

0.2% v. -0.4%

 

Import Prices ex-oil - July

-0.4% v. -0.3%

 

Retail Sales - July

0.2% v. 0.6%

 

Retail Sales ex-auto - July

0.5% v. 0.1%

 

Treasury Budget - July

-$97.6B v. -$69.6B

 

Next week’s economic highlights include Existing Home Sales and FOMC Minutes on Wednesday, Initial Jobless Claims, the FHFA Housing Price Index, and Leading Economic Indicators on Thursday, and New Home Sales on Friday.

 

The Markets:

 

Charts Courtesy of http://finance.yahoo.com/

 

Oil pared early gains as the U.S. dollar index reversed early losses and ended with a modest gain on speculation about what the fed will do.

 

Treasuries fell as interest rates climbed to their highest in over two years on better than expected housing and productivity data.

 

The Dow, Nasdaq, and S&P traded mixed and ended slightly lower on worries about rising interest rates.

 

Among the big names making news in the market Friday were Boeing, Dell, and Wal-Mart.

 

The Commentary:

 

The World Gold Council this week released some very interesting data which I want to relay here although you can get it firsthand by clicking on the link below to take you directly to their site.

http://www.gold.org/media/press_releases/archive/2013/08/gdt_q2_2013_pr/

I want to first start with a chart of the largest gold ETF, GLD. I consider this ETF to be a very good proxy for overall WESTERN gold investment demand.

 

Notice how the gold holdings in the ETF have been consistently dropping for this entire year thus far. GLD Began the year with 1350 tons of gold reported in their holdings. As of yesterday, August 15, reported holdings are 913 tons. Doing the math we learn that a total of 437 tons have gold have been offloaded from this ETF by predominantly large WESTERN investors, aka, hedge funds. So we have it established that investment demand for gold in the West has been pitiful. That we know and have stated repeatedly as the gold price chart has continued to deteriorate for most of this year.

However, what stands out to me in the WGC data is this: (By the way, I could not help but notice that they misspelled the word ' jewelry)!

Globally, jewellery demand was up 37% in Q2 2013 to 576 tonnes (t) from 421t in the same quarter last year, reaching its highest level since Q3 2008. In China, demand was up 54% compared to a year ago; while in India demand increased by 51%. There were also significant increases in demand for gold jewellery in other parts of the world: the Middle East region was up by 33%, and in Turkey demand grew by 38%.


Bar and coin investment grew by 78% globally compared to the same quarter last year, topping 500t in a quarter for the first time. In China, demand for gold bars and coins surged 157% compared with the same quarter last year, while in India it jumped 116% to a record 122t. Taking jewellery demand and bar and coin investment together, global consumer demand totalled 1,083t in the quarter, 53% higher than a year ago.

Look at that last sentence again.... total global consumer demand for gold totaled 1,083 tons in the second quarter. The report also states that demand for bars and coins was 508 tons - that is more than enough to completely absorb the 437 tons of gold dishoarded by hedge funds!

What the hedge funds have been throwing away, the Chinese and the Indians have been buying as well as smaller buyers of bars and coins.

This fits with the Commitment of Traders reports which have been detailing the continued long liquidation by the category of traders known as Managed Money or Hedge funds, not to mention the rapid escalation of new short positions in gold.

It has been this solid, sustained demand for PHYSICAL GOLD that has put the price floor under this market and prevented the bears from cracking the market lower. However, in and of itself, that buying was insufficient to drive the price SHARPLY HIGHER. To do that, MOMENTUM BUYERS must make their entrance into the metals markets. That now appears to be occurring; not in a large way as of now, but nonetheless it is happening.

As mentioned yesterday hedge funds are beginning to take a look at the precious metals once again and getting some exposure on the long side. They are grossly under-invested in this category (and that includes the mining shares) and thus we are seeing somewhat of a rebalancing of their portfolios to favor a larger exposure. This bodes well for the metals as we head into the historically strongest season for gold prices.

Oh and by the way, it is certainly helping matters to learn that Paulson has cut his holdings in gold in a significant way. A move by such a large player of his nature goes a long way in assuaging fears that more "capitulation" type selling in gold is coming. Maybe we can look back at some point in the near future and point to his selling as the final bottom. I find that incredibly ironic. It also goes to show how the STREET shows no mercy and has no friends whatsoever but is a violent, cruel and brutal entity. The smaller barracudas seem to relish harassing the larger sharks when opportunity presents itself.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts: 

 

 

Eric Sprott sneaks GATA into the Toronto Globe and Mail

Jeff Nielson: World Gold Council can't spell 'decoupling'

 

The Statistics:

Activity from: 8/15/2013

Gold Warehouse Stocks:

6,998,991.321

-

Silver Warehouse Stocks:

165,225,914.749

-235,010.095

 

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

912.919

29,351,265

US$40,179m

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$6,067m

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$494m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

42.53

1,367,338

US$1,814m

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.314 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 177.60: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 10,525.71: +71.99 change from yesterday’s data.

 

The Miners:

 

Gold Fields’ (GFI) comments about the mining industry and Huldra Silver’s (HDA.V) DIP Loan were among the big stories in the gold and silver mining industry making headlines Friday.

 

WINNERS

1.  Golden Minerals

AUMN +5.96% $1.60

2.  Mag Silver

MVG +5.34% $7.30

3.  Avino

ASM +3.36% $1.23

 

LOSERS

1.  Harmony

HMY -6.00% $4.07

2.  Almaden

AAU -5.77% $1.96

3.  Tanzanian Royalty

TRX -5.67% $3.83

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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Additional Resources for today’s Gold Seeker Report can be found:

© Gold Seeker 2013

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

 


-- Posted Friday, 16 August 2013 | Digg This Article | Source: GoldSeek.com

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