-- Published: Wednesday, 8 October 2014 | Print | Disqus
| Close | Gain/Loss |
Gold | $1222.50 | +$11.90 |
Silver | $17.40 | +$0.21 |
XAU | 82.10 | +6.96% |
HUI | 200.82 | +7.56% |
GDM | 605.02 | +6.76% |
JSE Gold | 1152.77 | -46.06 |
USD | 85.24 | -0.43 |
Euro | 127.39 | +0.74 |
Yen | 92.49 | +0.03 |
Oil | $87.31 | -$1.54 |
10-Year | 2.330% | -0.020 |
Bond | 140.875 | +0.28125 |
Dow | 16994.22 | +1.64% |
Nasdaq | 4468.59 | +1.90% |
S&P | 1968.89 | +1.75% |
The Metals:
Gold climbed $9.82 to $1220.42 at about 5:30AM EST before it fell back to $1205.12 by early afternoon in New York, but it then shot back higher after the release of today’s fed minutes and ended with a gain of 0.98%. Silver rose to $17.471 before it slipped back to $17.062, but it then bounced back higher in the last couple of hours of trade and ended with a gain of 1.22%.
Euro gold rose to about €959, platinum gained $22 to $1278, and copper fell slightly to about $3.03.
Gold and silver equities fell over 1% by midday, but they then stormed back higher in afternoon trade and ended with about 7% gains.
The Economy:
U.S. mortgage applications rise in latest week: MBA Reuters
U.S. fiscal 2014 budget deficit falls to $486 billion, CBO says Reuters
Minutes from the fed’s September 17th meeting “said a global slowdown and a stronger dollar posed potential risks to the outlook for the U.S. economy.”
Fed debate on changing interest rate guidance heats up: minutes Reuters
Tomorrow brings Initial Jobless Claims and Wholesale Inventories.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on worries about the world economy that sent the U.S. dollar lower and treasuries higher.
The Dow, Nasdaq, and S&P turned markedly higher after today’s fed minutes indicated that they won’t be raising interest rates until the economy improves.
Among the big names making news in the market today were Actavis and Allergan, Monsanto, and Costco.
The Commentary:
“Silver Showing Some Signs of Bottoming?
I want to stress that the grey metal has NOT YET confirmed this however. It is showing some stability here just above $16.50 as it oscillates around the $17 level.
I have noted two resistance levels that have formed on the chart. The first comes in near $17.50; the latter, and the more formidable, shows up at $18. If the bulls can push the price up past both levels, we will some significant short covering.
The reason for the comments is that Monday's bizarre trading day in which the US Dollar completely erased all of its strong gains from last Friday's jobs report, sent the entire commodity complex soaring higher. That wild day impacted the price charts of many individual commodities (remember that 30 cent rally in the beans?) and painted some chart patterns that have the pure technically-oriented traders perking up.
Remember, our markets are run by computers and these computers are "pure technicians" in the sense that they do not care, nor do they consult, fundamentals. As such one cannot ignore technical developments in markets.
With the Goldman Sachs Commodity Index continuing to swoon (it is threatening to take out a 27 month low today!) it is difficult for me to envision silver mounting any kind of sustained rally, especially with copper having trouble near the $3.00 mark. Still, bears will need to be alert to any violations of those upside resistance levels.
I should note that Australia's Perth Mint reported some very strong sales of its silver coin (757,000 ounces in September and 819,000 in August). According to Dow Jones that was double what it had been selling at the few previous months.
While that is good news it is not enough to shift the sentiment towards the metal overall at this point. Silver needs a STRONG Economy with lots of industrial demand (think cell phones, tablets, electronics, etc.) and growth to spur it strongly higher. I know I shall incur the wrath of the silver perma-bulls with this next comment but frankly I do not view silver as a safe haven. It is too bulky and too hard to transport in size. For a store of value in inflationary times however, it can be quite good.
For now, perhaps the market has found a level above which it is comfortable trading with prices having fallen far enough for the time being. Given its 23% plunge in price in three months time, it is not unreasonable to see some consolidative type trade.
With the FOMC on tap, there is no telling what we will get. The market could make another fresh leg lower or it could take out resistance and move higher. I simply do not know.
One quick comment and chart - Unleaded Gasoline scored a 46 month low in price today! I for one am quite happy to see this and I am sure a whole lotta other consumers are as well.
As I said above, this underscores the deflationary type environment we are seeing in the commodity complex which is why I am a skeptic when it comes to silver. I will say this - if silver does fall below that low from Monday this week and especially below last Friday's low near $16.64, I would not rule out a further fall to near $15.00.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“• Despite all the pom-pom waving and chest-beating by the “Don’t Worry, Be Happy” crowd on Wall Street, the U.S. stock market overall was going no where’s fast in 2014. I suggested this was a broad major top forming and the recent big swings in up and down days was the final piece of the puzzle to the numerous bearish technical and fundamental factors that were piling up. Look for rallies now to be sold into but TOUT-TV will remain home base for the “Happy Days Are Here Again” crowd. The "Alibaba" top appears in.
• I remain “honored” to serve on Money Manager Michael Pento’s Investment Policy Committee. It’s been our belief that the “happy” people’s “fantasy” that the FED would tighten and all would be well would never become reality. It’s been our belief the FED would end up not tightening and instead be forced to begin QE4, 5, forever…. Stay tuned as those hate emails and calls should be prepared to send apologies before too long.
You can receive Michael’s free weekly podcast by simply providing your email here
• We need to get above the 50-Day M.A. in gold before we can say a triple bottom has been put in place (presently around $1,260). The extreme pessimism towards gold certainly qualified as an extreme but we need to see the significant technical damage repaired before coming out of the foxhole.
• Excellent commentary from Dave Stockman
• I continue to warn about the coming auto loan crisis.
• NY Post’s John Crudele is a maverick among the sheepish financial journalist. Keep digging John!
• We knew this not long after his arrival.” - Peter Grandich, http://moneytalks.net/peters-content.html
GATA Posts:
Dan Popescu: The calm before the storm in the gold market
Watch Sprott, Rule, and Embry discuss prospects for monetary metals
London gold fix price manipulation confirmed by Australian researchers
Financial Times: Banks plan to write off derivatives when a counterparty fails
China is maneuvering to get its currency included in IMF's super-currency
Gold initiative would hamper policy, Swiss government says
China wants say in 'price discovery' in everything
Russia, South Africa in talks to support platinum price
The Statistics:
Activity from: 10/7/2014
Gold Warehouse Stocks: | 9,184,358.719 | +37,468.98 |
Silver Warehouse Stocks: | 183,102,257.610 | -379,039.51 |
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 | 767.468 | 24,674,849 | US$30,013m |
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$5,360m |
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$436m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 38.04 | 1,222,979 | US$1,509m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 161.67: -0.73 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,857.35: No change from yesterday’s data.
The Miners:
WINNERS
1. Tanzanian Royalty | TRX +15.25% $2.04 |
2. B2Gold | BTG +13.92% $2.22 |
3. Alamos Gold | AGI +13.60% $8.77 |
LOSERS
1. Solitario | XPL -2.10% $1.17 |
2. Revett | RVM -1.87% $1.05 |
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, 8 October 2014 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Gain About 1% While Miners Surge 7%
