-- Published: Monday, 24 March 2014 | Print | Disqus
| Close | Gain/Loss |
Gold | $1309.50 | -$23.40 |
Silver | $19.98 | -$0.31 |
XAU | 93.91 | -4.66% |
HUI | 226.53 | -3.99% |
GDM | 677.38 | -3.99% |
JSE Gold | 1508.95 | -65.05 |
USD | 79.91 | -0.18 |
Euro | 138.39 | +0.46 |
Yen | 97.87 | +0.06 |
Oil | $99.60 | +$0.14 |
10-Year | 2.733% | -0.017 |
Bond | 133.5625 | +0.0625 |
Dow | 16276.69 | -0.16% |
Nasdaq | 4226.38 | -1.18% |
S&P | 1857.44 | -0.49% |
The Metals:
Gold dropped $24.27 to $1308.00 by midafternoon in New York before it bounced back higher in the last hour of trade, but it still ended with a loss of 1.76%. Silver slipped to as low as $19.927 and ended with a loss of 1.53%.
Euro gold fell to about €946, platinum lost $12 to $1420.00, and copper remained at about $2.95.
Gold and silver equities fell over 4% by late morning and remained near that level for the rest of the day.
The Economy:
U.S. March factory activity growth slows slightly: Markit Reuters
Tomorrow brings the Case-Shiller 20-city Index, the FHFA Housing Price Index, Consumer Confidence, and New Home Sales.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended slightly higher on supply concerns after a collision between two vessels caused a spill into the Houston Ship Channel.
The U.S. dollar index reversed early gains and ended lower as the euro climbed higher in late trade on optimism that the situation in Ukraine will not escalate any further.
Treasuries rose as the Dow, Nasdaq, and S&P traded mostly lower on a poor reading from Markit’s manufacturing index.
Among the big names making news in the market today were Cisco, JPMorgan, Apple and Comcast, Alibaba, Herbalife, and Nu Skin.
The Commentary:
“Last Friday's COT report showed a fairly large build in new longs among the hedge fund community. Unfortunately for them, those new longs BOUGHT HIGH and ended up SELLING LOW; not a particular good way to impress their clients.
Nearly all of those new longs were immediately under water as soon as the FOMC issued its statement last week. That and the fact that WWIII did not break out, as many of the perma gold bugs were predicting, was enough to turn the momentum back and that did it for the momentum-based funds. They are now selling.
In looking at the Daily Chart, it has now turned negative once again with the loss of downside support near $1320. Gold has currently encountered a bit of buying support at the 38.2% Fibonacci retracement level from the $1180 low to the recent high shy of $1400. Failure to hold here, and a test of PSYCHOLOGICAL support (there is nothing as far as Technical chart support about this level ) at the $1300 will be shortly in order.
If that is not enough to bring in dip buyers, then the next logical chart level that I can see is closer to $1287.
The ADX turned down last week suggesting a halt in the recent uptrend. That has certainly been confirmed with the crossover by the Directional Movement Lines. The Bears have now seized control of the market once again. We will have to see whether or not the Bulls can seize it back again but they are going to have to resurface very, very soon and at a bare minimum recapture $1340 - $1345 to run out some of the new shorts.
If you notice, the short-term uptrend line has also been broken.
Silver is actually holding up better than gold today as it thus far seems reluctant to move below $20 for any length of time. It might be drawing some stability from the fairly steady copper market.
Mining shares are of no help whatsoever to the entire metals complex at this point. There is a zone of congestion on the HUI chart between 210 - 220. That index looks like it is headed there. So far the miners are down nearly 4% today.
By the way, bonds are getting some money flows into them today. Interest rates have dropped a wee bit on the Ten Year to 2.737 as I type these comments.
Not much else to say except the week has started off poorly for gold bulls. Maybe it will end better.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“My Dear Friends,
Chair Yellen has placed herself between the rock of recession and the hard place of playing the hawk. A global recession cannot produce an isolated USA, but rather underscore the heart of the recent US economic figures as a reflection of an insular American economy following the world back into recession, not entirely extremely cold weather related. You might note that China has not had as much of a weather problem yet and is experiencing degrees of contraction in the spectacular rate of growth previously present.
The idea that stimulation, even if only in form but not reality, can be withdrawn without draconian economic results is simply false. Chair Yellen is truly dedicated to full employment and is going to go into shock over the next few short months at the divergence between her economic modeling, the behavioral economic projections and the degree of economic contraction in the US. She will revert to her long standing dovish viewpoint of the mandate of the Federal Reserve and move this hyper stimulation (4 trillion) into a higher gear than before.
Both the stock market and the gold market will reflect this in substantively higher prices. One should never forget that the wheels of the equity markets and gold is liquidity, which represents debt presently and nothing more.
I am presently 13 hours ahead of you in Hong Kong looking out of my window in contemplation of mainland China where nothing has changed. China may look like a free enterprise exercise, but it is far from it. This is a Maoist country that will handle a contraction of its economic activity in a much different way than the hoards of Ivy League analysts populating Wall Street, the City and the Bahnhofstrasse believe. There will be a unified pulling together of the economic function to prevent the dire circumstances the uninformed love to paint China with and have been for the better part of a generation now.
The only asset to survive and appreciate in the period of the great leveling now in progress in the West is Gold. That is understood at a level of POLICY here in the East. Gold is not being bought here in the physical market as an investment decision but rather as a policy decision. It is clearly understood that gold is for saving and not for speculation as the eventual failure of the paper gold market will prove.
As we move out of the Great Leveling 2016 into the Great Reset of 2020 gold will have preserved the buying power of those courageous enough to hold and when possible add to their positions. Companies holding gold free of the tentacles of the West will prosper accordingly.
The developments in Crimea are a well timed stratagem to prevent the adoption of the TITT Treaty that no one wants which has the ability to turn Euroland into a dollar dependent trading area. The Baroness and Mr. O’Sullivan have more to do with ongoing events in the Crimea than the organized and false demonstrations are blamed for.
The US dollar knows this and can be seen to have lost its snap back mojo from below the .80 level of the USDX to the mid .80s. It is even struggling today as the stratagem to bring down the Euro has been trumped by the ongoing move of Putin.
Stay the course in gold and you will benefit mightily.
Sincerely,”- Jim Sinclair, JSMineset.com
GATA Posts:
Rickards: China slammed gold down, Bundesbank wants suppression, not repatriation
GATA Chairman Murphy interviewed by The Daily Bell
Gene Arensberg's Got Gold Report: Hedge funds getting longer in gold
John Browne: Gold's fundamentals may be starting to overcome market manipulation
Zero Hedge: How China imported all that gold without exploding the price
Clamor for devaluation to boost industry in Britain
Top 10 nations stockpiling gold
The Statistics:
Activity from: 3/21/2014
Gold Warehouse Stocks: | 7,488,299.822 | +192,732.691 |
Silver Warehouse Stocks: | 182,571,443.810 | +25,941.78 |
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 | 816.972 | 26,266,456 | US$35,081m |
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$5,824m |
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$470m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 40.03 | 1,287,107 | US$1,783m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 4.196 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 166.14: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,164.74: No change from yesterday’s data.
The Miners:
Centamin’s (CEE.TO) year end results and SilverCrest’s (SVLC) year end results were among the big stories in the gold and silver mining industry making headlines today.
WINNER
1. Tanzanian Royalty | TRX +0.47% $2.13 |
LOSERS
1. Alexco | AXU -15.81% $1.81 |
2. SilverCrest | SVLC-12.25%$1.79 |
3. Great Panther | GPL -11.21% $1.03 |
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: Monday, 24 March 2014 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Over 1.5%
