-- Posted Wednesday, 11 September 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1364.60 | -$0.20 |
Silver | $23.14 | +$0.18 |
XAU | 99.43 | +0.90% |
HUI | 242.69 | +0.67% |
GDM | 738.06 | +0.87% |
JSE Gold | 1260.62 | -19.66 |
USD | 81.50 | -0.30 |
Euro | 133.14 | +0.47 |
Yen | 100.17 | +0.56 |
Oil | $107.56 | +$0.17 |
10-Year | 2.920% | -0.039 |
T-Bond | 130.96875 | +0.6875 |
Dow | 15326.60 | +0.89% |
Nasdaq | 3725.01 | -0.11% |
S&P | 1689.13 | +0.31% |
The Metals:
Gold fell $8 to $1356.80 in early Asian trade before it climbed back to $1368.05 in London and then dropped to as low as $1357.70 at about 7:15AM EST, but it then chopped back higher in New York and ended with a loss of just 0.02%. Silver slipped to as low as $22.896 in London before it also rallied back higher into the close and ended with a gain of 0.78%.
Euro gold fell to about €1025, platinum gained $0.20 to $1468, and copper rose slightly to about $3.27.
Gold and silver equities saw over 1% losses at various times throughout the day, but they ultimately fought back higher and ended with almost 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Wholesale Inventories | July | 0.1% | 0.2% | -0.2% |
Mortgage applications slide as rates match 2013 high: MBA Reuters
Tomorrow brings Export and Import Prices, Initial Jobless Claims, and the Treasury Budget.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil pared early gains after the Energy Information Administration reported that crude inventories fell 200,000 barrels, gasoline inventories rose 1.7 million barrels, and distillates rose 2.6 million barrels.
The U.S. dollar index fell on wariness about next week’s fed actions.
Treasuries remained higher after today’s $21 billion 10-year note auction sold at a yield of 2.926% with a bid to cover of 2.86.
The Dow and S&P saw decent gains on relief about the lack of an attack on Syria while the Nasdaq fell on a disappointing report from Apple.
Among the big names making news in the market today were Verizon, JPMorgan, IBM, News Corp., Lehman Brothers, and Apple.
The Commentary:
“By now it should be obvious that any Syrian premium that was in the gold market has now been effectively rung out. Price gains due to geopolitical events tend to be quite fleeting unless the events escalate which in this case they did not. As far as the market is now concerned, Syria is off the map and most traders realize nothing is going to happen over there to change the status quo in the least bit.
That means other drivers for gold are now coming back into focus. While the US dollar is weaker today, it is not helping gold much with the exception of perhaps allowing it to remain above an important level of chart support. From my perspective, the markets looks "heavy".
I keep coming back to the same thing I have been focusing on for the last couple of weeks now - namely - the recent gains in gold have come mainly from hedge fund short covering as their short positions had become rather large from an historical perspective. Now that they have covered a large number of those shorts (bought them back) there is simply no additional source of buying on a large enough scale to take the market through important overhead chart resistance levels. Large speculators do not have any technical reasons to chase the price of the metal higher and thus they are NOT ENTERING this market in large numbers. Without thrust to counteract the pull of gravity, markets will tend to follow the path of least resistance and that is lower. It will take some sort of economic data news release to trigger any strong, concerted, and more importantly, SUSTAINED NEW BUYING.
As you can see from the price chart, gold is perched right on top of an important chart support level that extends from $1360 - $1355 or so. Bears are gunning to break it down through this region for they realize, if they do, that price will fall rather rapidly to $1325 - $1320. For the bulls to get anything going beyond this boring, nothing-to-the-upside aspect, they will need to clear $1380 at a bare minimum but more importantly, recapture that "14" handle.
The fact that the mining shares seem rather comatose right now is not aiding the cause of the metal. Also, it does not help gold to see interest rates rising here in the US especially since most investors believe that inflation is a non-existent threat for the time being.
The one thing gold has going for it right now is that it is into a period in which it normally is strong from a seasonal perspective. That brings us to same factors which have always been supportive, namely far-Eastern buying of the metal. The question is the same however as it has been for some time now - can the physical market demand for the metal be enough to support a market which is lacking any serious investment demand from the West? The answer to that question is also the same - Yes, the physical market demand can put a floor of support under the gold price but it is important to understand that this demand, while it can be most impressive, is insufficient to generate a sustained bullish uptrend. That will not happen unless western based investors decide to chase the price higher, something which they are not currently doing.
One more thing - at the risk of beating a dead horse - you will note that for all this erroneous talk of "backwardation", the gold price simply cannot make much headway to the upside.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Christian Garcia: U.S. Mint hedges silver purchases with HSBC and JPM
Pan American Silver repudiates recent hedging
David Franklin: A leaky fix
The Statistics:
As of close of business: 9/10/2013
Gold Warehouse Stocks: | 7,028,230.996 | -482.22 |
Silver Warehouse Stocks: | 161,360,664.911 | +76,006.612 |
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 | 917.126 | 29,486,502 | US$40,191m |
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$6,049m |
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$490m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 41.92 | 1,347,690 | US$1,869m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 178.17: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,563.70: +29.98 change from yesterday’s data.
The Miners:
Gabriel Resources’ (GBU.TO) threatened lawsuit, Aurcana’s (AUN.V) bridge loan, and Endeavour Silver’s (EXK) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Turquoise | TRQ +5.17% $5.49 |
2. DRDGOLD | DRD +4.53% $6.00 |
3. Great Panther | GPL +3.96% $1.05 |
LOSERS
1. Revett | RVM -10.14% $1.24 |
2. Rio Alto | RIOM -4.74% $2.21 |
3. Rubicon | RBY -4.73% $1.41 |
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 Wednesday, 11 September 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver End Mixed
