-- Published: Thursday, 31 July 2014 | Print | Disqus
| Close | Gain/Loss |
Gold | $1282.10 | -$14.60 |
Silver | $20.37 | -$0.25 |
XAU | 99.15 | -2.03% |
HUI | 233.90 | -2.17% |
GDM | 718.20 | -1.99% |
JSE Gold | 1485.66 | -26.58 |
USD | 81.45 | +0.03 |
Euro | 133.89 | -0.07 |
Yen | 97.22 | -0.05 |
Oil | $98.77 | -$2.10 |
10-Year | 2.556% | +0.002 |
Bond | 137.21875 | -0.28125 |
Dow | 16563.30 | -1.88% |
Nasdaq | 4369.77 | -2.09% |
S&P | 1930.67 | -2.00% |
The Metals:
Gold saw only slight losses in Asia and London, but it then fell back off further for most of trade in New York and ended near its early afternoon low of $1281.36 with a loss of 1.13%. Silver slipped to as low as $20.343 and ended with a loss of 1.21%.
Euro gold 1455
Gold and silver equities fell over 2% by early afternoon and remained near that level into the close.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 7/26 | 302K | 310K | 279K |
Employment Cost Index | Q2 | 0.7% | 0.4% | 0.3% |
Chicago PMI | July | 52.6 | 61.8 | 62.6 |
Tomorrow brings July’s jobs data, Personal Income and Spending, Core PCE Prices, Michigan Sentiment, the ISM Index, and Construction Spending.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on reduced demand expectations after a refinery in Kansas announced it may shut down for as long as four weeks.
The U.S. dollar index found modest gains on better than expected jobs data.
Treasuries saw slight losses ahead of tomorrow’s monthly jobs report.
The Dow, Nasdaq, and S&P fell markedly on poor earnings reports, concerns about interest rates, and worries about credit markets “after Argentina defaulted and a Portuguese bank was ordered to raise capital.”
Among the big names making news in the market today were Iliad and T-Mobile, Amazon, Exxon, Open Text, Target, MasterCard, Suncor, and Time Warner Cable.
The Commentary:
“Not only are equities being pummeled this morning, the commodity sector is also seeing heavy selling pressure. There are some individual markets within the sector that are managing to shrug off some of the selling pressure, (coffee for instance - that doesn't count anyway since that market was set up by aliens to trap earthlings prior to whisking them away into outer space) but overall, the entire sector is dropping sharply lower.
The GSCI just notched a brand new 5 month low this morning, especially with the energy sector dropping as it has. Even the high flying cattle market has been unable thus far to resist the selling.
Once again, the safe havens are back on as the US Dollar and the Japanese Yen are higher with bonds pulling into plus territory after collapsing a full point earlier in the session.
End of month book squaring is further muddying the waters today.
The low reading for initial unemployment claims has spooked gold bulls who are worried that the upcoming payrolls numbers are going to come in stronger than expected. The thinking is that the Fed's hand is going to be forced to raise interest rates sooner rather than later. That remains to be seen but with the sharp drop in equities, that sort of talk is a bit premature. It does however underscore just how sensitive the gold market is to any talk of higher interest rates. Higher rates will act as a headwind to gold, which throws off no yield.
The US Dollar has not yet been able to convincingly push past 81.60 basis the USDX. If it does, look for more selling across the gold market especially with commodity prices heading lower, especially crude oil and its products.
It is going to be interesting to see whether or not the equities experience one of those famous last hour recoveries today.
Gold has fallen back below the 45 day moving average and looks to be setting up a test of the support zone noted on the chart near the $1280 level.
Crude oil lost its chart support this morning but thus far has managed to find a floor above the $98/barrel level. There looks to be some better defined support near 97.60 - 97.50. The ADX is rising but does not yet indicate a trending move. That suggests the market will find some support sooner rather than later. If the secondary support level does give way however, crude could retrace towards 96. That would put it at the lowest level since early February.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Chinese gold jewellery demand sees first quarterly drop in 8 years
Doug Pollitt: Brain worms
The Statistics:
Activity from: 7/30/2014
Gold Warehouse Stocks: | 8,716,978.698 | +64,561.317 |
Silver Warehouse Stocks: | 176,642,010.730 | -116,017.24 |
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 | 801.844 | 25,780,078 | US$33,118m |
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$5,715m |
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$460m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 41.89 | 1,346,780 | US$1,744m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 165.66: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,014.63: No change from yesterday’s data.
The Miners:
New Gold’s (NGD) second quarter results, IAMGOLD’s (IAG) commercial Production declaration, Goldcorp’s (GG) second quarter results, Alamos Gold’s (AGI) second quarter results, Lake Shore’s (LSG) second quarter operating results, Seabridge Gold’s (SA) Environmental Assessment Certificate approval, and Hecla’s (HL) second quarter results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Seabridge | SA +3.65% $9.37 |
2. Yamana | AUY +2.28% $8.52 |
3. Paramount | PZG +0.99% $1.02 |
LOSERS
1. Agnico Eagle | AEM -8.76% $37.19 |
2. Golden Minerals | AUMN-5.56% $1.19 |
3. Alamos Gold | AGI -5.00% $8.93 |
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, 31 July 2014 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall About 1% While Stocks Drop 2%
