Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Close with Modest Losses but Miners Gain on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 24 2017
By: Ira Epstein

Life Under Manipulation
By: Theodore Butler

Legendary investor names his top junior resource stock picks right now
By: Peter Spina, President, CEO of GoldSeek.com & SilverSeek.com

Silver Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Deflation must be embraced
By: Alasdair Macleod

Gold’s 47-Year Bull Market
By: Steven Saville

Taxes, Macro Signals, Seasonality, US Stocks and Gold Miners
By: Gary Tanashian

The Key to Profitably Ending Precious Metals Price Suppression And Other Markets Manipulation!
By: Deepcaster

The Precious Metals Bears' Fear of Fridays
By: Dimitri Speck

 
Search

GoldSeek Web

 
Gold Seeker Closing Report: Gold and Silver Gain While Stocks Drop
By: Chris Mullen, Gold-Seeker.com

 -- Published: Thursday, 10 April 2014 | Print  | Disqus 

 

Close

Gain/Loss

Gold

$1318.00

+$6.90

Silver

$20.05

+$0.17

XAU

94.18

-1.67%

HUI

228.99

-1.77%

GDM

681.87

-1.47%

JSE Gold

1540.76

+30.90

USD

79.41

-0.09

Euro

138.87

+0.33

Yen

98.54

+0.47

Oil

$103.40

-$0.20

10-Year

2.628%

-0.056

Bond

134.25

+0.8125

Dow

16170.22

-1.62%

Nasdaq

4054.10

-3.10%

S&P

1833.08

-2.09%

 
 

 

The Metals:

 

Gold climbed to as high as $1324.36 at about 8:30AM EST before it chopped back lower in New York, but it still ended with a gain of 0.53%.  Silver surged to as high as $20.372 and ended with a gain of 0.86%.

 

Euro gold rose above €949, platinum gained $12 to $1451, and copper remained at about $3.04.

 

Gold and silver equities saw slight gains at the open, but they then fell back off for most of the rest of trade and ended with about 1.5% losses.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Initial Claims

4/05

300K

325K

332K

Export Prices

Mar

0.8%

-

0.7%

Export Prices ex-ag.

Mar

0.5%

-

0.6%

Import Prices

Mar

0.6%

-

0.9%

Import Prices ex-oil

Mar

0.3%

-

-0.1%

 

House passes Ryan's Republican budget with deep spending cuts Reuters

 

Tomorrow brings PPI and Michigan Sentiment.

 

The Markets:

 

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

 

Oil ended slightly lower on signs of progress towards Libyan exports.

 

The U.S. dollar index fell to a five month low on doubts that the fed will raise interest rates anytime soon.

 

Treasuries rose as the Dow, Nasdaq, and S&P dropped markedly on worries about upcoming earnings reports.

 

Among the big names making news in the market today were GM, Chesapeake Energy, ADP, CBS, and EBay.

 

The Commentary:

 

Gold put in a nice showing today building on last week's bounce away from chart support near $1280 and the change in handles from "12" to "13".

The FOMC minutes released yesterday continue to put pressure on the US Dollar, but even more importantly, acted to depress US interest rates. That is the key driver for gold in my view at this time. Gold seems to struggle when interest rates here in the US rise as investors see little threat of inflation and seek out assets that will throw off some sort of yield rather than the yellow metal which only provides gains if it continues to rise in price. In a benign inflation environment, many do not believe gold will continue to rise.

For those who are new to this blog, a bit of a disclaimer here - I am giving you the broader market view of the inflation picture (plus that of the Fed), not my own view. As someone who lives in the real world and sees grocery prices moving higher, health insurance premiums rising, local taxes and fees rising, etc., I reject the argument that consumers are not getting squeezed by such things. However, until the broader market consensus shifts towards genuine fears of inflation, rallies in gold are going to be viewed as selling opportunities.

By the way, those record high beef prices that are finally being felt at the grocery store should begin to decline over the course of the next few weeks. It takes a while for the higher priced beef (and pork for that matter) to make its way into the pipeline but wholesale beef prices have already peaked for now and are working lower. Consumers should see some relief on both the beef and the pork front beginning within the next few weeks. What happens this summer depends on whether or not grocers can move the high priced stuff during the warmer months. There is an old adage that the "best cure for high prices is high prices" and that is what we will soon see as demand will shift to chicken until consumers get sick of that. Maybe then beef and pork prices will stabilize at lower levels and we can all afford to eat bacon and throw some red meat on the pit smokers. Grocers are usually hesitant to raise retail red meat prices (they have excellent margins in meat) for fear of stunting demand but with the goings on in the livestock markets over the last few weeks, many have had no choice but to bite the bullet, raise prices and hope for the best. From what I am hearing, consumers are noticing and are balking.

Back to gold -

From a chart perspective, gold continues to remain within the broad trading range that I have outlined for some time now. It will need a catalyst of some sort to kick it higher or send it lower. What that might be remains unclear to me.

 

As you can see from the chart, it has run into some selling near the resistance level noted near the $1320 region. Above that, resistance is layered in approximately $20 increments, first near $1340 and then again near $1360.

Downside support comes in near and just above $1300 followed by our old friend near $1280.

On the ADX, which indicates a trendless market, the bulls have regained the short term advantage (when it held at $1280). Stochastics are rising as price moves up in the range showing the near term friendly picture. How this market handles this $1320 level today and tomorrow, will be a key as to how to approach it. The trading range is pretty broad (up near $1400 on the top and $1280 on the bottom). We could see this range tighten up a bit and narrow down somewhat from the current $120.

As mentioned above, I cannot see what would cause this market to break out of its current range at this time. The Dollar would either have to drop off sharply breaking down below 79 on the USDX or interest rates would have to plummet sharply here in the US, along with perhaps a larger selloff in the broader equity markets to take it up out of the top end of the range. On the downside, we would need to see a sharp rally higher in the US Dollar (alongside especially of a sharp selloff in the Euro ) and a surge in interest rates above the 3% level in the Ten Year to take it down below $1280 in my view.

Take a look at Eurogold (gold priced in terms of the Euro). Notice how it too is essentially rangebound. The ADX reveals the lack of a clearly defined trend. The top of the range is up near the 1000 euro region; the bottom down near 880 - 860. If gold could clear the 1000 euro level, we might finally have something to write about. Can it do that? Who knows but if the ECB were to actually proceed with their chatter about their own version of QE and forcing banks to pay interest on reserves held there at the ECB, then we might finally see the Euro weaken sharply enough to send gold higher and through that 1000 level.

Apparently Europe is having the same problems over there as we are over here - a lack of inflation and in their case, an excessively strong currency, which no one over there wants.

 

Back to the safe haven thing - equities are showing some surprising signs of weakness today, which is odd considering that they got all bulled up yesterday on those dovish FOMC minutes.

A lot of technicians are watching the 1830 - 1820 zone on the S&P 500. That is a big support level. If it were to give way, especially on a closing weekly basis, we could finally see some deeper losses in stocks. As you can see on the weekly chart, that is some uptrend so unless bulls are sent packing by an avalanche of selling, odds favor them coming in and continuing to buy dips. Maybe we can get some range trading/consolidation in stocks for a change instead of this nearly one-way ticket north.

 

The gold mining shares are providing little if any support to gold judging from their mediocre performance today. One gets the impression that they do not know whether to follow the broader market lower or the metal higher. Either way, it is not exactly a ringing endorsement of further strong gains in the actual metal. Then again the day is yet young and we could see some better buying enter before the close of today's session.

Switching gears just one more time - recent hog slaughter data shows it’s running a bit more than 7% below last year's levels. USDA told us in their recent Hogs and Pigs report that the worst we could expect was 5%. Their own data is proving the inaccuracy of that last quarterly report; however, the trade is still confused and unclear. Those who are lending credence to that report have been able to gain some advantage but yesterday's bizarre and extremely rare move from limit down to limit up within the matter of a few hours time shows just how unsettled this issue is in the industry. It is going to take at least another full month to sort it out and even then we might not really know for sure. In all my years of trading the livestock markets, I have never seen the hogs so unsettled or so volatile. They are making my old deceased friend, the pork bellies contract, look tame by comparison and that is saying something. I miss that contract and all the shenanigans that accompanied it.

Corn is moving lower today as once again improving weather conditions are stirring talk of field work taking place. Beans are moving lower probably due to some profit taking by longs who have been making small fortunes playing the demand side of the bean equation. Large expected soybean acreage this season is taking a backseat to insatiable demand for beans. While prices for corn and beans are far off record highs from two years ago, they are still very profitable. I am happy for our hard working farmers but I still must take this opportunity to vent against that boondoggle ethanol mandate. I hate that stuff with a passion because of its adverse impact on our livestock sector. That plus the idea of burning 40% of our corn crop in our gasoline tanks strikes me as the height of stupidity. Whenever I hear some politician from the corn belt start talking up a 15% ethanol blend, I want to scream. Anyone seen what that stuff does to seals?- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Telegraph notes research on China's huge gold demand by GoldMoney's Macleod

 

The Statistics:

Activity from: 4/09/2014

Gold Warehouse Stocks:

7,759,543.962

+14,202.57

Silver Warehouse Stocks:

178,347,777.630

+1,123,832.494

 

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

806.483

25,929,248

US$34,221m

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$5,851m

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$474m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

40.38

1,298,280

US$1,714m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 164.41: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 10,228.97: No change from yesterday’s data.

 

The Miners:

 

Royal Gold’s (RGLD) stream deliveries, Gold Fields (GFI) guidance update, SEMAFO’s (SMF.TO) test results, Comstock’s (LODE) progress update, Banro’s (BAA) production update, McEwen’s (MUX) production results, Goldcorp’s (GG) raised bid for Osisko (OSK.TO), Santacruz Silver’s (SCZ.V) new director, Coeur’s (CDE) exchange offer, and Great Panther’s (GPL) director resignation were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Comstock

LODE +1.78% $1.72

2.  Allied Nevada

ANV +1.45% $4.20

3.  Eurasian

EMXX +1.14% $1.03

 

LOSERS

1.  Midway

MDW-10.09%$0.98

2.  Alexco

AXU -8.52% $1.45

3.  Solitario

XPL -4.35% $1.32

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

 

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

Additional Resources for today’s Gold Seeker Report can be found:

© Gold Seeker 2014

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

 


| Digg This Article
 -- Published: Thursday, 10 April 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.