The Metals:

Gold dropped $5.05 to $1323.95 in late Asian trade before it rebounded to $1335.36 at about 10:30AM EST and then drifted back to $1326.99 in the next four hours of trade, but it then rallied back higher in late trade and ended with a gain of 0.11%.  Silver slipped to $21.002 in Asia before it bounced back to $21.485 in London and then chopped back lower in New York, but it still ended with a gain of 0.19%.

Euro gold fell towards €970, platinum jumped $23 to $1449, and copper fell slightly to about $3.20.

Gold and silver equities rose over 1% in the first hour of trade, but they then fell back off in early afternoon trade and ended with modest losses.

The Economy:

Yellen Repeats Fed Likely to Continue Trimming Asset Purchases Bloomberg

Tomorrow brings GDP, Chicago PMI, Michigan Sentiment, and Pending Home Sales.

The Markets:

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

Oil edged lower on worries that unrest in Ukraine will slow economic growth in Europe.

The U.S. dollar index fell as the yen rose on safe haven buying.

Treasuries remained higher after today’s $29 billion 7-year note auction sold at a yield of 2.105% with a bid to cover of 2.72.

The Dow, Nasdaq, and S&P traded mostly higher on positive company reports.

Among the big names making news in the market today were Sears, Freddie Mac, Best Buy, Lego, IBM, and J.C. Penney.

The Commentary:

“Yes indeed, the Dove of Doves is living up to her reputation as far as the gold market is concerned:

"Low inflation gives Fed room to pursue full employment".

What further, besides personally buying gold futures, could she have done to spook gold bears?

The spin being put on this is that the Fed will hold off on the tapering as they wait to see if the recent poor economic data is an anomaly due to the harsh, frigid winter weather or if it is becoming a trend.

Gold bulls are betting it is the latter.

For that matter, Dollar bears are too because back down the Dollar is going this morning and back up are going commodities in general. You could not have asked for a statement that would better clip yesterday's Dollar rally than that which Yellen supplied this morning. I sometimes get the idea that the Fed would love to see the Dollar even weaker - after all - they are not getting the inflation that they want to produce.

I have said it many times, the markets no longer are interested in fundamentals - they are interested in what the Fed may or may not do. I guess this is what free-market capitalism has degenerated into. Then again, with the rest of the decline in this nation, we should not be surprised to see this sort of thing.

America is rotting internally. Any observer from outside of the nation ( and those within who are attuned to these things ) can observe its rising degeneracy and ignorance. We are fast becoming a nation given totally over to hedonism at the expense of discipline, ethics, virtue and morality. Our national character is deteriorating and with that, so too are our various institutions. We are short-term oriented; the longer term consequences be damned.

The Fed's answer to any economic hiccup or slowdown, especially under Yellen, has been and always will be to pump liquidity into the system and artificially suppress interest rates in the hopes of spurring increased borrowing and further indebtedness. They have to because ours is a debt-based economy.

In the process of so doing however, they have created more misallocation of capital than all of the bone-headed decisions of hedge fund managers combined throughout our modern financial era. Big specs cannot be blamed for going with the Fed - after all they exist to make money from speculating. But if the Fed, particularly this Yellen-led Fed, is not careful, they are going to end up ruining the Dollar with this idiocy. Only the Dollar's reserve status has allowed the US to continue with its reckless spending and incessant borrowing. The more those authorities who are charged with maintaining its "value" undermine that value, the greater the possibility that the financial quality of life for the average US citizen comes under attack.

We are talking about the future of our children. Those who foolishly squander their birthright for a bowl of stew to satisfy the immediate lusts of Wall Street, are doing no service to the next generation.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

GATA Posts:

Biggest gold ETF has first monthly inflow in over a year

Gold fix rigging may finance banker bonuses, Sprott says

The Statistics:

Activity from: 2/26/2014

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: No change in Total Tonnes from yesterday’s data.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 164.24: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 10,204.36: +44.87 change from yesterday’s data.

The Miners:

Eurasian’s (EMXX) Advance Notice Policy, Exeter’s (XRA) corporate update, Primero’s (PPP) approved acquisition of Brigus Gold (BRD), and Silver Bear’s (SBR.TO) updated Preliminary Economic Analysis were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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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• http://www.capitalupdates.com
• http://www.goldseek.com
• http://www.silverseek.com
• http://www.goldreview.com 

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