-- Published: Wednesday, 14 May 2014 | Print | Disqus
| Close | Gain/Loss |
Gold | $1306.10 | +$12.80 |
Silver | $19.77 | +$0.24 |
XAU | 91.40 | +0.64% |
HUI | 223.24 | +1.01% |
GDM | 666.15 | +0.99% |
JSE Gold | 1482.64 | +13.13 |
USD | 80.06 | -0.07 |
Euro | 137.14 | +0.11 |
Yen | 98.20 | +0.40 |
Oil | $102.37 | +$0.67 |
10-Year | 2.543% | -0.075 |
Bond | 137.09375 | +1.21875 |
Dow | 16613.97 | -0.61% |
Nasdaq | 4100.62 | -0.72% |
S&P | 1888.53 | -0.47% |
The Metals:
Gold climbed $15.53 to $1308.83 at about 8:25AM EST before it edged back lower in late morning New York trade, but it still ended with a gain of 0.99%. Silver surged to as high as $19.987 and ended with a gain of 1.23%.
Euro gold rose to about €952, platinum jumped $30 to $1478, and copper climbed a few cents to about $3.16.
Gold and silver equities rose over 1% at the open and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
PPI | Apr | 0.6% | 0.2% | 0.5% |
Core PPI | Apr | 0.5% | 0.2% | 0.6% |
Tomorrow brings Initial Jobless Claims, CPI, Empire Manufacturing, Net Long-Term TIC Flows, Industrial Production, Capacity Utilization, the Philadelphia Fed, and the NAHB Housing Market Index.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil remained higher after the Energy Information Administration reported that crude inventories rose 900,000 barrels, gasoline inventories fell 800,000 barrels, and distillates fell 1.1 million barrels.
The U.S. dollar index fell and the yen rose as treasuries jumped higher on the outlook for more monetary accommodation in Europe.
The Dow, Nasdaq, and S&P fell ahead of tomorrow’s economic data.
Among the big names making news in the market today were Citigroup, Macy’s Boeing, and Deere.
The Commentary:
“I am still trying to make sense out of what is happening in the interest rate markets this morning, given that strong PPI number. The yield on this key Treasury (and one of my favorite indicators) has plunged to the lowest level since October of last year!
From a technical analysis standpoint alone (I am not considering anything fundamental) the chart has experienced a downside breakout. There is one last level of chart support back at those October lows near 2.46 - 2.47%.
Did the Fed just start a new QE program and I missed it? Some of the Treasury buying in recent weeks has been attributable to safe haven flows related to events in Ukraine but that in and of itself is not sufficient to have produced the steady influx of buying in the Treasury market.
Why this is so noteworthy in my mind is that the Fed has provided forward guidance suggesting that while their tapering plans will proceed, no interest rate hikes are being considered until 2015-2016. Most of the big players split the difference and projected no hikes until mid-2015.
However, if the PPI, which is notoriously more volatile than the CPI, shows a trend towards higher wholesale prices, then that would bring into question any rate hike delay of that length of time. We really do need to see that CPI number tomorrow to get a sense of what is taking place.
As you can see, there are a lot of uncertainties right now. I can tell you one thing, mortgage company risk management departments must be spinning this morning. Imagine trying to initiate a hedging program in this environment. One day we are getting surging payrolls numbers and chatter of higher rates. The next day rates are plunging lower. No wonder we are getting the types of wild swings in prices in so many markets. Commercial hedging interests are also getting whipsawed and ripped to shreds let along hedge funds who are experiencing some sizeable losses.
Traders - be careful - watch the size of those positions you put on. Keep them manageable or you are going to end up with some big losses if you are not glued to your computer screen.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
London silver fix to end in August, with Deutsche Bank sticking around until then
Traders may have gained early word on Fed policy, study finds
New York Sun: The dwindling Fed
Chinese fund offers 46% premium for Laotian gold miner
The Statistics:
Activity from: 5/13/2014
Gold Warehouse Stocks: | 8,060,705.912 | - |
Silver Warehouse Stocks: | 175,920,927.598 | -126,763.098 |
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 | 780.456 | 25,092,435 | US$32,732m |
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$5,796m |
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$468m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 40.85 | 1,313,469 | US$1,709m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 164.02: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,320.26: No change from yesterday’s data.
The Miners:
B2Gold’s (BTG) first quarter results, Pan American’s (PAAS) awarded medal to its chairman, and Bear Creek’s (BCM.V) favorable judicial decision were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Fortuna | FSM +5.65% $4.30 |
2. MAG Silver | MVG +5.56% $7.40 |
3. Yamana | AUY +5.45% $7.55 |
LOSERS
1. Rio Alto | RIOM -2.02% $1.94 |
2. Paramount | PZG -1.94% $1.01 |
3. First Majestic | AG -1.90% $9.28 |
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: Wednesday, 14 May 2014 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain About 1%
