-- Posted Wednesday, 30 October 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1342.80 | -$1.80 |
Silver | $22.68 | +$0.20 |
XAU | 99.14 | +1.47% |
HUI | 245.49 | +1.45% |
GDM | 721.27 | +1.44% |
JSE Gold | 1353.68 | -13.38 |
USD | 79.75 | +0.11 |
Euro | 137.35 | -0.11 |
Yen | 101.41 | -0.45 |
Oil | $96.77 | -$1.43 |
10-Year | 2.527% | +0.020 |
T-Bond | 134.8125 | -0.4375 |
Dow | 15618.76 | -0.39% |
Nasdaq | 3930.62 | -0.55% |
S&P | 1763.31 | -0.49% |
The Metals:
Gold dipped $5.55 to $1339.05 in early Asian trade before it climbed to as high as $1359.42 at about 10AM EST and then dropped back under $1335 at about 2:30PM, but it then rallied back higher in last hour and a half of trade and ended with a loss of just 0.13%. Silver surged to as high as $23.065 before it also fell back off, but it still ended with a gain of 0.89%.
Euro gold fell back under €978, platinum gained $11.75 to $1468.50, and copper climbed a few cents to about $3.31.
Gold and silver equities rose about 2% at the open before they fell to see about 2% losses about a half hour after today’s fed statement was released, but they then rallied back higher into the close and ended with almost 1.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
ADP Employment | Oct | 130K | 135K | 145K |
CPI | Sep | 0.2% | 0.1% | 0.1% |
Core CPI | Sep | 0.1% | 0.1% | 0.1% |
The fed announced that it will maintain its current pace of bond purchases at $85 billion a month.
Federal Reserve issues FOMC statement FRB
Fed maintains strong stimulus as U.S. growth stumbles Reuters
Fed Keeps $85 Billion QE Pace Awaiting Signs Economy Picks Up Bloomberg
Tomorrow brings Initial Jobless Claims, Personal Income and Spending, Core PCE Prices, and Chicago PMI.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil pared some early losses after the Energy Information Administration reported that crude inventories rose 4.1 million barrels, gasoline inventories fell 1.7 million barrels, and distillates fell 3.1 million barrels.
The U.S. dollar index reversed early losses and turned higher after the fed’s statement this afternoon, but it ended with only a slight gain on the day.
Treasuries remained higher after today’s $29 billion 7-year note auction sold at yield of 1.870% with a bid to cover of 2.66, but they then fell back off and ended modestly lower in reaction to the fed’s statement.
The Dow, Nasdaq, and S&P erased early gains and fell rather markedly in initial reaction to fed’s statement, but they then bounced back higher in late trade and ended with only minor losses.
Among the big names making news in the market today were Sprint, Fannie Mae, GM, PricewaterhouseCoopers, Deutsche Bank, VW, Chrysler, JPMorgan, Comcast, and Infosys.
The Commentary:
“Yes indeed, that honorable profession, that noteworthy use of precious time, that virtuous expenditure of human energy, has once again been called forth by the monthly proclamation of the divine oracles - namely the FOMC.
Ah yes, those dispensers of wisdom from above, of knowledge and insight, have graced us mere mortals with another round of insightful analysis into the workings of the machine we know as the US economy. And pray tell, what did they tell us this month? Not a damn thing that we already did not know!
They held steady - no tapering of the bond buying program - not that anyone out there expected them to announce such a thing - so now it is back to parsing the statement for CLUES into the inner workings of our monetary masters. "Let us see if we can anticipate their next move for in it, lies our fortune", is today's mantra.
For Pete's sake, are as many of you out there as sick and tired as I am of this pathetic routine already? What a nauseating display of groveling by the once dynamic forces of US capitalism - sitting around waiting and licking their lips to see whether their masters will toss them some chew sticks.
Regardless, the initial moves that I am seeing is weakness in gold, strength in the US Dollar and believe it or not, downward price action in the US equity markets. This seems to me to be a case of "Buy the rumor; sell the fact". The markets were essentially bid up, (gold and equities) in anticipation of a continuation in the bond buying without any tapering and that is exactly what they got. So now what? Bull markets need to be fed and one has to wonder where the food is supposed to come from next?
Yes, the Fed is on hold probably until next spring at the earliest as far as tapering goes but some are gleaning a - drum roll here please - an early taper in December because - another drum roll here - the Fed did not seem to be quite as negative on the economy as many were expecting them to sound, especially with so many of the various governors making the rounds right after the government shutdown ended and were sounding like the sky was falling.
This is leading Dollar bears to cover short bets and as such, bringing in selling to the gold market. It is also hitting silver. Interest rates are moving higher as a result. Here we go again....
I have not written much this week mainly because I am trying to spend my time in doing something more constructive than sit here and watch this idiocy all day long, day after day - I have been engaged in carving some pumpkins for Halloween, something much more enjoyable and in the larger scheme of things - much more lasting than the sentiment for each and every trading day. As a matter of fact, I am willing to bet that my carved pumpkins last for at least three days - far longer than the shifting mind sets of traders who seem to have managed to condense the entire business cycle into a 24 hour period instead of 6 months like it used to be.
Let's see where gold settles when the day ends... for now, $1360 has been reinforced as resistance which has held.
The dollar also looks to have found support above critical support near the 79 level on the USDX.
Looks like more range trade ahead which means the HFT crowd will be back to screwing with the markets once again and continuing to plunder the rest of us. I am thinking of making a new video game for Xbox. Instead of Call of Duty, I am going to make the HFT crowd the alien invaders while the "good guy" traders, get points for crushing them and sending them home crying to their mammas. Hey, I can dream can't I?”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
TF Metals Report: JPM will take December delivery, so gold is about to rally
Chris Powell: Gold price suppression -- why, how, and how long?
Ambrose Evans-Pritchard: JPM sees 'most extreme excess' of global liquidity ever
Andrew Maguire: Christian attacked me to defend the paper gold system
The Statistics:
As of close of business: 10/29/2013
Gold Warehouse Stocks: | 7,153,726.881 | - |
Silver Warehouse Stocks: | 168,515,038.796 | +900,797.66 |
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 | 872.020 | 28,036,311 | US$37,969m |
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$6,017m |
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$486m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 41.55 | 1,335,829 | US$1,767m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 171.88: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,502.23: No change from yesterday’s data.
The Miners:
Barrick’s (ABX) dividend, Newmont’s (NEM) dividend, B2Gold’s (BTG) third quarter results, Eurasian’s (EMXX) optioned projects, Nevsun’s (NSU) commissioning update, African Barrick’s (ABX) annual production target, and Coeur’s (CDE) Exchange Offer were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Richmont | RIC +4.76% $1.32 |
2. Yamana | AUY +4.72% $10.21 |
3. Timmins | TGD +3.75% $1.66 |
LOSERS
1. Paramount | PZG -3.08% $1.26 |
2. Rio Alto | RIOM -2.84% $1.71 |
3. Northern Dynasty | NAK -2.80% $1.39 |
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, 30 October 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver End Mixed in Volatile Trade
