-- Published: Thursday, 13 March 2014 | Print | Disqus
| Close | Gain/Loss |
Gold | $1371.60 | +$4.50 |
Silver | $21.17 | -$0.11 |
XAU | 105.30 | +2.41% |
HUI | 256.92 | +3.14% |
GDM | 763.85 | +2.72% |
JSE Gold | 1605.85 | +11.13 |
USD | 79.60 | +0.01 |
Euro | 138.69 | -0.37 |
Yen | 98.39 | +1.05 |
Oil | $98.20 | +$0.21 |
10-Year | 2.653% | -0.073 |
Bond | 134.9375 | +1.25 |
Dow | 16108.89 | -1.41% |
Nasdaq | 4260.42 | -1.46% |
S&P | 1846.34 | -1.17% |
The Metals:
Gold climbed $7.83 to $1374.93 in Asia before it fell back to $1364.53 in London, but it then bounced back higher in New York and ended with a gain of 0.33%. Silver edged up to $21.448 before it dropped back to $21.109 and then also rebounded, but it still ended with a loss of 0.52%.
Euro gold rose above €989, platinum gained $2.50 to $1473.50, and copper fell 4 cents to about $2.92.
Gold and silver equities rose about 3% by midday and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 3/08 | 315K | 329K | 324K |
Retail Sales | Feb | 0.3% | 0.2% | -0.6% |
Retail Sales ex-auto | Feb | 0.3% | 0.2% | -0.3% |
Export Prices | Feb | 0.6% | - | 0.2% |
Export Prices ex-ag. | Feb | 0.6% | - | 0.2% |
Import Prices | Feb | 0.9% | - | 0.4% |
Import Prices ex-oil | Feb | -0.2% | - | 0.3% |
Treasury Budget | Feb | -$193.5B | -$195.0B | -$203.5B |
Average 30-year mortgage rate rises to 4.37% usatoday
Tomorrow brings PPI and Michigan Sentiment.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil edged higher on worries about Ukraine.
The U.S. dollar index reversed early losses and ended slightly higher as the euro dropped after Draghi talked about deflation risks.
Treasuries remained higher after today’s $13 billion 30-year note auction sold at a yield of 3.630% with a bid to cover of 2.35.
The Dow, Nasdaq, and S&P fell on worries about China and Ukraine.
Among the big names making news in the market today were Target, Pfizer, Amazon, and GE.
The Commentary:
“Do you not find it odd to say the least, that the US Dollar has not been able to garner any support in the form of safe haven buying related to the deteriorating crisis over in Ukraine? For how many years have we seen the greenback as the "Go-To" currency during times of financial or geopolitical crises.
Remember 2008? How about the European Sovereign Debt Crisis? How about that rush INTO the Dollar when the idea of a Fed tapering first began to surface.
What happened to all of that?
It sure makes me wonder if part of the issue is tied to the Obama administration's handling of its foreign policy issues.
One thing for sure is occurring however - Treasuries are getting a firm bid out of safe haven plays. That is dropping interest rates and appears to be undercutting the Dollar although one does wonder how a rush into Dollar-denominated Treasuries is not Dollar supportive. There are so many new and different developments in these markets anymore that attempting to understand them all is proving to be an exercise in futility.
What I do know however is that this persistent Dollar weakness, is providing a strong floor of support in the gold market.
In the past, when we did get a general round of Dollar selling, almost as if in inverse lockstep, the commodity sector would march higher as the weakness in the currency would trigger a big macro trade across the sector.
This is not occurring. Copper continues to sink lower and lower and while crude oil is managing a bit of a bounce today, the products are both weak. Individual commodity markets are powering higher (Coffee, Hogs, Cotton) but the broad-based buying in the sector is lacking. You can see this in the relatively weak performance of silver compared to gold. Silver is following copper today and acting like an industrial metal rather than a monetary metal (you never know what you are going to get with schizophrenic silver from day to day).
I am very closely monitoring this Dollar chart however. The market is poised right above an important chart support zone near the 79 level basis USDX. If that goes, I expect to see gold reach the psychological $1400 mark.
The ADX is now rising along with the Negative Directional Movement Indicator (RED LINE) showing the bears are currently in control of the market and a trending move is looking more likely. Again, that will require the support zone to give way but unless the bulls make a firm stand here, they are going to cede complete control of the market to the bear camp.
The HUI looks like it woke up from its slumber of yesterday. It has finally managed to clear 250 which is a real positive. I need to see this index power above 280 for starters to conclude that a stronger bullish uptrend is developing. Still, one has to be happy for the long suffering mining sector bulls who have been mercilessly pummeled for so long. At least their portfolio balances are finally moving higher.
We'll have to see what develops further over in Ukraine but for now, it has certainly spooked equity bulls and that is sending money flows into both gold and Treasuries for the time being.
This Dollar weakness is troubling, very troubling...”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
McEwen acknowledges central bank intervention against gold, cites GATA
Swiss financial newspaper notes gold market manipulation issue
The Statistics:
Activity from: 3/12/2014
Gold Warehouse Stocks: | 7,139,540.141 | +58,726.595 |
Silver Warehouse Stocks: | 183,270,039.933 | -45,170.61 |
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 | 811.198 | 26,080,818 | US$35,681m |
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$6,097m |
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$492m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 40.63 | 1,306,427 | US$1,756m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 1.498 tonnes.
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:
Kirkland’s (KGI.TO) third quarter results, Timberline’s (TLR) merger with Wolfpack (WFP.V), and SilverCrest’s (SVL.V) closed offering were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Primero | PPP +11.42% $7.51 |
2. Sandstorm | SAND +10.28% $6.76 |
3. Timmins | TGD +9.80% $1.68 |
LOSERS
1. Mines Management | MGN -5.52% $1.37 |
2. Turquoise Hil | TRQ -1.15% $3.43 |
3. Tanzanian Royalty | TRX -1.12% $2.66 |
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, 13 March 2014 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold Gains While Stocks Drop
