The Metals:

Gold climbed $10.33 to $1219.33 by midday in New York before it edged back lower in early afternoon trade, but it still ended with a gain of 0.46%.  Silver surged to as high as $17.44 and ended with a gain of 0.76%.

Euro gold rose to about €963, platinum lost $16 to $1281, and copper climbed a couple of cents to about $3.03.

Gold and silver equities traded mostly slightly higher and ended mixed.

The Economy:

Tomorrow brings Initial Jobless Claims and Factory Orders.

The Markets:

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

Oil erased early gains and ended modestly lower despite a surprise drop of 1.4 million barrels in crude inventories.

The U.S. dollar held near unchanged on worse than expected economic data that sent treasuries measurably higher and the Dow, Nasdaq, and S&P markedly lower.  Worries about Ebola and broken technical levels in the charts also had traders talking.

Dallas Ebola Patient Let Go After Telling of Africa Trip  Bloomberg

Among the big names making news in the market today were Pershing Square, Goldman Sachs, Blackstone, Chrysler, Nissan, Ford, Fannie Mae, Freddie Mac, Coca-Cola, Cisco, and American Realty.

The Commentary:

“Stocks continue to waver with some investors fretting about overall slowing global economic growth. The September Manufacturing PMI numbers were released this morning by the Institute for Supply Management showing a fall to 56.6 from August's 59.0 reading. The reading remains above 50 showing continued expansion but the pace slowed and that is feeding into those concerns noted above.

The one number that I found noteworthy was the New Orders index. That fell to 60.0 from August's 66.7, which was a multi-year high according to Dow Jones. Again, nothing strongly negative but it does reflect a slowing trend and that is spooking equity bulls somewhat.

That is bringing some strong buying into the bond market which notched a three week high today.

The flip side to this were numbers out of China. It's version of the manufacturing PMI came in at a 51.1 reading for September. That was steady with the August reading.

Investors/traders are looking at this and seeing the glass half full this morning (especially in the copper and silver markets). The thinking is, "Yes, we knew China was slowing down but at least it seems to have stabilized". One month does not a trend make but for today, copper is breathing a sigh of relief and has thus managed to hold above $3.00. Silver seems to be taking its cues from the red metal and has clawed back above $17 on the number.

The weakness in the stock markets has sent some safe haven buying into gold this morning (note the Yen is also higher confirming the safe haven bid seen in the gold and bond markets) and that is keeping the metal afloat above psychological and round number support at $1200. Even the HUI is bouncing today.

Something also I am watching this morning is the further melt-up in the feeder cattle market. In going over the COT data for this very small and thinly traded futures market, I noted that the small specs or general public, have been holding the bulk of the short position in there and they are being mercilessly brutalized by the hedge funds who are squeezing them to kingdom come. Again, this market is currently experiencing a parabolic blow off run which I want to hasten to add makes it EXTREMELY DANGEROUS for all by the most experienced and nimble trader. Be careful with it unless you have some very deep pockets.

Every now and then a mania comes along in the futures world and this market is one of them. When the panic buying out at the auction barns in the country is going to come to an end is anyone's guess but with replacement feeders fetching such nose-bleed prices, my view is that once the panic ends, the fall will be quite dramatic. Oh would I have loved being a cattle guy at this time in the industry with calves to sell! It was not that long ago when you could not GIVE them away.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

GATA Posts:

Banks pull out of dozens of benchmarks after rate-rigging scandals

Join Sprott, Rule, and Embry on Oct. 7 to discuss the prospects for the monetary metals

Mike Kosares: Why China thinks gold is the buy of the century

BIS is main mechanism for manipulating the gold market, Rickards says

The Statistics:

Activity from: 9/30/2014

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 2.393 tonnes.

The Miners:

Goldcorp’s (GG) output in Mexico, Revett’s (RVM) resumed crushing operations, and Hecla’s (HL) increased interest in Canamex were among the big stories in the gold and silver mining industry making headlines today.

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 

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