-- Published: Thursday, 6 March 2014 | Print | Disqus
| Close | Gain/Loss |
Gold | $1350.30 | +$12.90 |
Silver | $21.47 | +$0.30 |
XAU | 103.15 | +1.19% |
HUI | 246.53 | +1.42% |
GDM | 742.18 | +1.18% |
JSE Gold | 1507.26 | +57.75 |
USD | 79.68 | -0.44 |
Euro | 138.58 | +1.21 |
Yen | 97.08 | -0.67 |
Oil | $101.56 | +$0.11 |
10-Year | 2.737% | +0.039 |
Bond | 133.34375 | -0.5625 |
Dow | 16421.89 | +0.38% |
Nasdaq | 4352.12 | -0.13% |
S&P | 1877.03 | +0.17% |
The Metals:
Gold dropped $6.04 to $1331.36 in Asia, but it then rose to as high as $1353.07 in New York and ended with a gain of 0.96%. Silver surged to as high as $21.628 and ended with a gain of 1.42%.
Euro gold remained at about €974, platinum gained $8 to $1481.00, and copper climbed slightly to about $3.21.
Gold and silver equities rose over 1% by midday and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 3/01 | 323K | 338K | 349K |
Productivity | Q4 | 1.8% | 2.5% | 3.2% |
Unit Labor Costs | Q4 | -0.1% | -0.7% | -2.0% |
Factory Orders | Jan | -0.7% | -0.5% | -2.0% |
Household Worth in U.S. Rose by $2.95 Trillion in Fourth Quarter Bloomberg
Tomorrow brings February’s jobs data, the Trade Balance for January, and Consumer Credit for January.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended slightly higher as worries about Ukraine were offset by mixed economic data.
The U.S. dollar index fell as the “euro rallied to a two-month high against the dollar after European Central Bank President Mario Draghi said inflation is expected to rise gradually, damping bets policy makers will introduce further monetary stimulus.”
Treasuries fell as the Dow, Nasdaq, and S&P traded mostly higher ahead of tomorrow’s jobs report.
Among the big names making news in the market today were Apple, BofA, Costco, and Staples.
The Commentary:
“Early in today's session ECB President Draghi threw the Euro bulls a nice bone to chew on and with that, it was off to the races for that currency with the US Dollar and the Japanese Yen both getting ceremonially dumped.
If that was not enough for the US Dollar, one of the Fed governors, Mr. Dudley, made his way to the microphones to state that the "Fed has a long time before raising short term rates". STRIKE TWO for the DOLLAR.
STRIKE THREE seemed to come in the form of ????. Perhaps it was Dudley's comment about the tapering being data dependent (recent data has not exactly been resplendent). He did go on to say however that the threshold to change the tapering plans would be "pretty high".
Either way, today was one of those days in which certain commodity sectors were seeing big inflows of hot money. Soybeans continue charging higher with corn getting in on the action. Already there is chatter that the planting season here in the US is going to be delayed on account of the abnormally cold weather (where is that damned global warming when we really need it?).
Gold garnered support from the surging Euro but was also aided by the vote out of the Crimean Parliament which wants to put to a vote the idea of breaking away from Ukraine and becoming a part of the Russian sphere. Some are viewing this as an escalation in the drama over there and that of course brings a bid into gold.
Like I said the other day, if you have the uncontrollable urge to actually trade the yellow metal at the Comex either lock yourself in vault somewhere away from a computer screen or at least trade small in size. This market is very fickle right now. Just be careful and do not get reckless or listen to all the hype currently coming out of certain segments of the gold community.
I put far more credit on what is happening to the Euro and the Dollar than I do to the ridiculous talk of a nuclear war. If the Euro can clear a strong overhead resistance zone near the 1.39 level while the Dollar CANNOT hold support between 79.50 - 79.00 on the USDX, gold should be able to breach overhead chart resistance near the $1,360 zone. It would have to best $1,375 but if it does, should be able to set up at least a test of psychological resistance at the $1,400 level.
Dip buying has continued to occur in gold with the situation in Ukraine keeping bears nervous but in my mind, the big driver has been the weakness in the Dollar and the continued move higher across certain key commodity markets. Strangely - and I have yet to make any sense out of this - Copper continues to go absolutely NO WHERE. It baffles me to no end to see this key industrial commodity NOT LEADING the sector. Either copper is going to have to make a sudden move higher or I am concerned that we are going to see some big retracements in the commodity sector at some point. There is a lot of hot money flooding into the sector but a great deal of it is purely technical in nature as momentum funds are buying. The problem is that unless there is a strong fundamental underpinning to some of this, once the upside momentum plays itself out, prices could get hit hard as the longs bail out.
The key, at least in my mind, will be whether or not the US Dollar can find its friends again. That is going to take some strong economic data soon. Perhaps it will be a payrolls number but one thing is for sure, the more traders are convinced that the Fed is not going to move on the short term interest rate front any time soon, the more the gigantic specs are going to play their carry trade and shove certain commodity sectors higher.
More later if time permits.... busy, busy week....”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Russia said to seek repeal of U.S. veto at IMF
No legitimate claim to $10 million California gold find, firm says
Bernanke begins trading on Fed service, and maybe its secrets
The Statistics:
Activity from: 3/05/2014
Gold Warehouse Stocks: | 7,133,441.272 | - |
Silver Warehouse Stocks: | 183,239,362.399 | +755,931.98 |
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 | 803.704 | 25,839,887 | US$34,746m |
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$5,987m |
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$484m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 41.25 | 1,326,273 | US$1,676m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 165.14: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,164.74: No change from yesterday’s data.
The Miners:
WINNERS
1. Mines Management | MGN +8.19% $1.73 |
2. NovaGold | NG +6.42% $4.31 |
3. Gold Fields | GFI +5.75% $3.86 |
LOSERS
1. Great Panther | GPL -2.99% $1.30 |
2. Solitario | XPL -2.84% $1.54 |
3. Rubicon | RBY -1.43% $1.38 |
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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-- Published: Thursday, 6 March 2014 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain About 1%
