The Metals:

Gold climbed $5.97 to $1322.17 in Asia before it dropped back to $1312.78 at about 6AM EST, but it then edged back higher in New York and ended with a loss of just 0.01%.  Silver rose to $21.20 before it fell back to $20.97 and then also edged back higher, but it still ended with a loss of 0.43%.

Euro gold fell to about €964, platinum gained $8 to $1473, and copper fell slightly to about $3.15.

Gold and silver equities ended slightly higher in mixed trade.

The Economy:

All of this week’s other economic reports:

Next week’s economic highlights include Chicago PMI and Pending Home Sales on Monday, Construction Spending on Tuesday, ADP Employment and Factory Orders on Wednesday, and Initial Jobless Claims, June’s jobs data, the Trade Balance, and ISM Services on Thursday.  US markets are closed on Friday for Independence Day.

The Markets:

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

Oil saw slight losses along with the U.S. dollar index on worries about the economy that sent the Dow, Nasdaq, and S&P lower for most of the day, but the major indices then edged back higher in late trade and ended modestly higher on rebalancing moves.  Treasuries fell on profit taking.

Among the big names making news in the market Friday were Barclays, GM, BNP Paribas, DuPont, Dollar General, and Mercedes and Infiniti.

The Commentary:

“The gold shares, as evidenced by the HUI, ended the week on bit of a lower note (as I type these comments up). Sellers emerged up near the week's high but dip buying was also evident. There appears to be an uneasy truce between both camps with the index not making much progress in either direction.

In looking over the chart and trying to get a read on the sector from the chart, I have noticed what appears to be an attempt to form what we technical analysis geeks refer to as an "Inverse" Head and Shoulders Pattern. I tend to only put any faith in these patterns when they appear after a PROLONGED move lower (the same goes for the opposite pattern - the Head and Shoulders Pattern - on a prolonger move higher). Even at that, I much prefer to see these patterns validated by a breach of an overhead horizontal resistance level rather than a breach of the neckline. More often than not, the neckline breaches these days only lead to markets entering consolidation patterns, rather than extended trending moves. That is why I personally prefer to wait for a horizontal resistance level to be taken out before getting too dogmatic about things.

Take a look at the chart and you will see the pattern noted. I have drawn in the neckline, which comes in closer to the 250 level. That level could be bettered confirming the pattern but would not necessarily denote the beginning of a sustained, strong uptrending move. Note that there are THREE overhead horizontal resistance zones, the last of which, the gap region, should prove to be quite formidable.

For a sustained strong upside trending move to begin, the gap would have to be taken out. If not, the odds would favor a broad sideways pattern, or a trader's market, with the top of the range being confirmed depending on how the index responds when it nears the horizontal lines noted on the chart.

The bottom of the range would be first at the right hand shoulder which just so happens to be at the round number 200, which is both psychological and technical support.

Here's what we can say from an analysis of this particular chart - For the pattern to remain friendly, the 200 level needs to remain unbroken on any possible setbacks in price (that is the Right Shoulder). That would keep the pattern moving sideways to slightly higher as it is currently doing. If that 200 level were to give way, you would then have to say that the pattern has changed back to being slightly unfriendly with price movement sideways to slightly lower.

If the first level of horizontal chart resistance noted near 260 is taken out, the bulls should be able take this index up towards 280. Above that lies the gap region.

By the way, the chart picture and analysis for the juniors as evidenced by the GDXJ is very similar to the HUI. It has horizontal resistance near 45. Above that is also a gap starting near 52 and extending up to 55.

Given the situation in Iraq and recent rash of dovish comments by some heads of the various Western Central Banks, gold is continuing to draw decent buying support here in the West. Throw in a case of some shaky equity markets, and some traders/investors are buying the metal as a safe haven. I remarked yesterday how fascinating it was to see gold finding friends here in the West while losing a few friends in the East (for now). Western oriented investment demand for gold is what had been missing for the yellow metal for the last number of years. Gold's friends will be happy to see it returning even if it is not at levels previously seen. At least it is there! Compared to being non-existent, anything is a big improvement!”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

The Statistics:

Activity from: 6/26/2014

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

COMEX Gold Trust (IAU) Total Tonnes in Trust: 163.62: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 10,106.68: -41.81 change from yesterday’s data.

The Miners:

Agnico Eagle’s (AEM) continued outlook for deal making and Great Panther’s (GPL) updated mineral resource estimates were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS

LOSERS

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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• http://www.capitalupdates.com
• http://www.goldseek.com
• http://www.silverseek.com
• http://www.goldreview.com 

© Gold Seeker 2014

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