-- Posted Tuesday, 10 December 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1262.50 | +$21.90 |
Silver | $20.40 | +$0.53 |
XAU | 85.79 | +4.01% |
HUI | 205.18 | +4.23% |
GDM | 602.92 | +3.97% |
JSE Gold | 1113.89 | +49.42 |
USD | 79.94 | -0.19 |
Euro | 137.68 | +0.31 |
Yen | 97.38 | +0.53 |
Oil | $98.51 | +$1.17 |
10-Year | 2.797% | -0.060 |
T-Bond | 131.6875 | +0.90625 |
Dow | 15973.13 | -0.33% |
Nasdaq | 4060.48 | -0.20% |
S&P | 1802.62 | -0.32% |
The Metals:
Gold jumped $26.94 to $1267.54 at about 9:30AM EST before it edged back lower at times, but it still ended with a gain of 1.77%. Silver surged to as high as $20.432 and ended with a gain of 2.67%.
Euro gold climbed to about €917, platinum gained $72 to $1387, and copper remained at about $3.27.
Gold and silver equities saw about 5% gains by midday before they fell back off a bit, but they still ended with about 4% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Wholesale Inventories | Oct | 1.4% | 0.3% | 0.5% |
JOLTS - Job Openings | Oct | 3.925M | - | 3.883M |
Bipartisan U.S. Budget Draws Lawmaker Ire Before Deal Bloomberg
Tomorrow brings the MBA Mortgage Index and the Treasury Budget.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil jumped higher ahead of tomorrow’s inventory report which is expected to show a sharp drop in supplies.
The U.S. dollar index fell and treasuries rose on doubts about when the fed will start to taper is bond purchases.
The Dow, Nasdaq, and S&P traded mostly slightly lower on worries about budget talks.
Among the big names making news in the market today were GM, Toll Brothers, and Lululemon.
The Commentary:
“We are experiencing a nice upmove in gold in today's session which is also being participated in by silver.
There are a couple of things at work today. First, after expectations that the Fed was going to announce a tapering at next week's FOMC meeting, traders have now largely dialed that back.
Secondly, and more importantly, this is contributing to further US Dollar weakness. We saw that yesterday but it is more notable in today's session as the USDX slid under the 80 level.
The Dollar has been recently been trapped in a range trade of its own. The top comes in between 81.40 - 81.00 while the bottom of the range is 79.20 - 79.05. As the Dollar has pushed higher in this range, gold has pushed lower. Now that the Dollar is breaking lower and moving back towards the bottom of the range, gold is powering higher.
In the case of gold, its upward progress has been exaggerated due to the build in hedge fund short positions which are vulnerable anytime one of these overhead chart resistance levels can be violated. That brings on another wave of strong short covering, which coupled with bottom picking, results in some sharp moves higher.
It should also be pointed out that we are now at that time of the year when some traders are going to begin squaring books for the end of the year. Shorting gold has been a fantastically profitable trade for 2013 and many shorts will look at the recent price action and decide to actually book those profits before they slip away.
Remember the old adage in trading: Bulls make money; Bears make money but Pigs get slaughtered.
In looking at the chart there are two things to note. The first is that HUGE VOLUME that I have noted on the chart when gold went back down and RETESTED the recent low of $1210 on that payrolls number. As mentioned in a post that day, the price action caught my attention as it portended a possible exhaustion day of the bearish leg lower. Gold however was unable to extend past the initial resistance level noted on the chart which would have confirmed that $1210 region as a double bottom on the chart. It did so today however and that needs to be respected.
I have made some annotations on the price chart. Today's move higher does open the door to a move up towards what will be stubborn selling resistance near $1290 - $1295. Bulls will want to see gold maintain these strong early-session gains however as the day wears on to give the market a realistic shot at such a scenario.
If this move is for real, we will not want to see the rally being losing steam as the day drags on. That would indicate that the short covering burst is failing to attract FRESH NEW BUYING.
Also helping gold is the fact that the HUI has managed to recapture the 200 level.
I am noticing that interest rates are moving lower once again as traders dial back expectations on the timing of any tapering. That is why the Dollar is seeing selling pressure and why gold is moving higher as a result. Recent action in interest rates reveal that rising rates on the long end of the curve have tended to bring selling into gold. In the absence of any widespread inflation fears, traders have tended to see this as a reason to sell gold.
We'll keep monitoring price action and see if we can decipher what the market is thinking.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Quebec tax agency hikes charges against Kitco; company rebuts them in detail
The Statistics:
As of close of business: 12/09/2013
Gold Warehouse Stocks: | 7,382,070.013 | -225.05 |
Silver Warehouse Stocks: | 169,700,088.734 | +628,472.53 |
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 | 835.705 | 26,868,753 | US$34,006m |
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$5,602m |
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$453m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 41.88 | 1,346,506 | US$1,674m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 168.97: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,304.49: No change from yesterday’s data.
The Miners:
Seabridge’s (SA) closed financing, Richmont’s (RIC) management changes, and Lake Shore’s (LSG) production guidance were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Tanzanian Royalty | TRX +16.57% $1.97 |
2. Allied Nevada | ANV +11.21%$3.57 |
3. Alexco | AXU +9.83% $1.29 |
LOSERS
1. Paramount | PZG -6.48% $1.01 |
2. Turquoise | TRQ -0.60% $3.33 |
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, 10 December 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain Almost 2% and 3%
