-- Published: Monday, 8 September 2014 | Print | Disqus
| Close | Gain/Loss |
Gold | $1255.60 | -$13.20 |
Silver | $19.03 | -$0.17 |
XAU | 92.74 | -2.69% |
HUI | 221.42 | -2.91% |
GDM | 671.33 | -2.80% |
JSE Gold | 1425.42 | -1.80 |
USD | 84.28 | +0.52 |
Euro | 128.96 | -0.53 |
Yen | 94.36 | -0.80 |
Oil | $92.66 | -$0.63 |
10-Year | 2.469% | +0.008 |
Bond | 139.34375 | -0.03125 |
Dow | 17111.42 | -0.15% |
Nasdaq | 4592.28 | +0.20% |
S&P | 2001.54 | -0.31% |
The Metals:
Gold dropped down to $1251.56 at about 1PM EST before it bounced back higher at times, but it still ended with a loss of 1.04%. Silver slipped to as low as $18.916 and ended with a loss of 0.89%.
Euro gold fell to about €973, platinum lost $11 to $1395, and copper remained at about $3.17.
Gold and silver equities fell over 3% by midday and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Consumer Credit | July | $26.0B | $17.4B | $17.3B |
There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on weak economic data out of China.
The U.S. dollar jumped higher as the pound fell on worries about Scotland.
Ownership of UK gold up for negotiation if Scotland votes Yes Reuters
Pound skewered over Scottish referendum jitters MarketWatch
Dollar gains as sterling, Aussie dollar and Brazilian real drop Reuters
Dollar Climbs to 14-Month High on Fed Bets, Scotland Bloomberg
Treasuries dropped on worries about possibly rising US interest rates that sent the Dow and S&P lower.
Among the big names making news in the market today were Citigroup, Alibaba, Hertz, Electrolux, GM, and Campbell Soup.
The Commentary:
“The strength in the US Dollar is continuing to batter gold, (not to mention a whole host of commodity markets) as the inverse connection between the two asserts itself.
Not only that, but continued outflows from the gold ETF, GLD and declining inflation expectations, are all undercutting the price of the yellow metal.
Here is a look at the US Dollar chart on an intermediate term. Note that the greenback is still trading within a 21 month long trading range but is approaching the upper portion of that range. Light resistance is near today's session high. Above that is the 85 level.
The RSI (shown below) is near 80 and at the highest level in over 4 years! Clearly this is one strong market at the moment.
Helping to further aid the Dollar today is the news that polling data out of Scotland shows a majority there now in favor of independence. This is pressuring the British Pound, which is one of the currencies that make up the basket comprising the USDX.
It is therefore rather humorous to continue reading the various breathless emails in my box detailing one more nail in the coffin of the US Dollar. All the while the currency marches relentlessly higher! One wonders how many of these people peddling this stuff ever bother to look at a simple price chart.
Needless to say, the strong Dollar is making for an ugly looking gold chart and ugly looking gold mining share charts as well.
The volatile juniors are still up for the year but the chart is currently negative with the index trading below all of its major moving averages and with various technical indicators all in clear bearish modes. The index looks to be on track for testing the bottom of its range near 32.
The HUI failed to hold the gap on the chart and is also in a bearish posture at the moment.
Gold bulls had better hope psychological support at $1250 holds or gold will revisit key support at $1240.
The Euro continues to fail at one support level after another and looks like it is heading to 1.2800. The weaker the Euro gets, the more difficulty gold is going to have.
On the grain front, we are watching the current forecast models for indications of the upcoming frost event see whether or not temps drop as low as were originally expected late last week. Today's models are showing the frost line further north but traders are still a bit jumpy and will be until the event comes and goes or the forecasts showing something more conclusive and less threatening. This afternoon's crop condition reports are expected to show phenomenal numbers so the grain bulls are praying for an early killing frost to bail them out.
I will try to get something up later after the USDA gives us those numbers.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“My Dear Extended Family,
Cycles are best understood as probabilities for directional movement. Those gold cycles that turned down at $1900 have now turned up with the price of gold now plumbing previous lows which are by definition major support.
The price objective once this experience is over is $2100, and is where it will trade in time.
I can only imagine what a deluge of emails this will bring from the Gold Internet Trolls.
Respectfully yours,”- Jim Sinclair, JSMineset.com
GATA Posts:
Goldcorp CEO sees 'peak gold' this year or next
Would Scotland take its gold or just a paper claim against Bank of England?
The Statistics:
Activity from: 9/5/2014
Gold Warehouse Stocks: | 9,682,094.034 | -48,606.317 |
Silver Warehouse Stocks: | 180,402,172.044 | +230,369.10 |
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 | 785.725 | 25,261,829 | US$31,786m |
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$5,571m |
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$450m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 38.04 | 1,223,154 | US$1,550m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 165.23: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,363.91: No change from yesterday’s data.
The Miners:
Tanzanian Royalty’s (TRX) drill results, Goldcorp’s (GG) dividend, Randgold’s (GOLD) Ebola statement, Vista Gold’s (VGZ) approved Environmental Impact Statement, Rubicon’s (RBY) project update, Kirkland’s (KGI.TO) first quarter results, and Bear Creek’s (BCM.V) optimization studies update were among the big stories in the gold and silver mining industry making headlines today.
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, 8 September 2014 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall About 1%
